TIPC Marine Corp. Ltd. and Swancor Renewable Energy Co. Ltd. announced the formation of their joint venture Taiwan Offshore Windfarm Service Corp. (TOWSC) on November 29. This new entity will develop, build, operate and maintain offshore wind farms around Taiwan’s coast as well as providing other relates services. TIPC Marine is a state-run seaport operator under island’s port authority Taiwan International Ports Corp. Ltd. (TIPC), while Swancor Renewable is a developer of wind power projects and is controlled by Swancor Holding Co. Ltd. This deal is made in support of Taiwan’s policies that aim to localize the supply chain for domestic wind power projects.
On the same day, Formosa I Wind Power Co. Ltd. and the Port of Taichung also signed a land and equipment lease for the assembly of wind turbines. Under this agreement, the Port of Taichung will receive wind turbine parts shipped from overseas in 2019, and Formosa I will also be given areas around the port terminal for the assembly of wind turbines. The lease can be regarded as an accompanying deal to the establishment of TOWSC since Formosa I is a project developed by Swancor Renewable, and the Port of Taichung is a part of TIPC. The execution of this plan will start after the approval from the board of Formosa I.
Committed to nuclear power phase-out in 2025 and CO2 reduction, Taiwan’s government launched the “Thousand Wind Turbine Project” in 2011 to promote the construction of offshore and land-based wind farms on the island. The targets for offshore generation capacity is to reach a cumulative total of 520MW in 2020 and 3GW in 2025. Moreover, Taiwan also wants to have 50 billion kWh of electricity, or around 20% of the island’s total power output, generated by renewable sources in 2025.
As a subsidiary of Swancor Holding, Swancor Renewable is responsible for developing four major offshore wind farms in Taiwan – Formosa I, II, III and IV. Formosa I, which is Taiwan’s first offshore wind farm, has two demonstration wind turbines put into commercial operation this April. The total generation capacity of these two wind turbines is 8MW. Formosa I is also expected to add another 120MW by 2019, thus achieving a cumulative total of 128MW.
TOWSC, which is jointly owned by Swancor Renewable and TIPC Marine, supports Taiwan’s promotion of offshore wind power by leading the efforts to localize the supply chain of wind turbines.
Taiwan’s geography is highly advantageous to offshore wind power generation. Furthermore, the Port of Taichung is an international seaport is located closest to coastal sites that are chosen for potential wind farms. The Port of Taichung therefore has given leasing priority to Formosa I in order to help this wind farm project complete its next development phase in addition to expanding the island’s offshore wind infrastructure. Under the lease made on November 29, wind turbine parts from overseas are scheduled to arrive at the Port of Taichung in 2019. At that time, Formosa I will immediately begin assembling wind turbines on site. The implementation of this plan will begin after formal approval by the board of Formosa I.
Regarding these deals, Robert Tsai, chairman of Swancor Holding, said that his company has been a pioneer in the development of Taiwan’s offshore wind power. Through its subsidiaries, Swancor combines local resources and international expertise in various aspects of wind farm construction, from applying for permits to planning, building, operation and maintenance. Tsai is very excited to have TIPC Marine as a partner in creating this joint venture to further advance Taiwan’s offshore wind power. He believes that Swancor Renewable and TIPC Marine together will be able to realize the localization of wind turbine manufacturing and raise the quality of the island’s offshore wind infrastructure.
Kuo-Ming Chang, chairman of TIPC Marine, stated that his state-owned enterprise has a duty to support government’s policies. Chang pointed out that TIPC Marine has the vessels, crew members and facilities that complement Swancor Renewable’s efforts to build offshore wind farms. Thus, Chang also believes that the latest joint venture deal is a major positive step towards the developing of Taiwan’s offshore wind power.
