The UK government is backing a major renewable energy project in Taiwan with a £184 million credit guarantee, boosting British exports and supporting clean energy development abroad.
UK Export Finance (UKEF), the country’s export credit agency, is providing the financial support for the construction of the Fengmiao 1 offshore wind farm. The 495MW project, located off the coast of Taichung City, is expected to be completed by 2027. It will reduce carbon emissions by an amount equal to taking 250,000 cars off the road each year.
As part of the deal, British companies will receive £55 million in export contracts for manufacturing and services. One of the main beneficiaries is Cadeler, a company with operations in East Anglia. Cadeler will supply an installation vessel, along with crew, crane operators, and sea-fastening services for the wind farm.
The guarantee from UKEF is part of a larger $3.7 billion financing package led by Copenhagen Infrastructure Partners (CIP). The funding also includes support from export credit agencies in Denmark, the Netherlands, Poland, Belgium, and Taiwan.
Boost to British Industry and Clean Energy Goals
The UK government says the deal will help drive economic growth and support jobs across the country. It also showcases Britain’s strength in clean-growth technologies.
Business and Trade Secretary Jonathan Reynolds said the government is fully committed to economic growth and climate goals.
“Being absolutely committed to delivering economic growth under the Plan for Change means we are using every tool at our disposal to enable British businesses to succeed,” he said. “This deal harnesses the power of commerce to drive the energy transition while securing lucrative new opportunities for UK businesses and supporting job creation in local communities.”
Cadeler Expands in Asia-Pacific
Cadeler’s CEO, Mikkel Gleerup, welcomed the support from UKEF, calling the project a key step in the company’s growth in Taiwan.
“UKEF’s backing highlights the importance to Cadeler and its clients of our operations in the UK,” he said. “With our UK-owned installation vessels and East Anglia-based team, we are proud to support offshore wind development both at home and abroad.”
Cadeler plans to continue expanding in the Asia-Pacific region and beyond, according to Gleerup.
A Milestone for Taiwan’s Offshore Wind Sector
CIP partner and head of Asia-Pacific, Thomas Wibe Poulsen, said the financing agreement marks a major milestone.
“This is the first offshore wind project in Taiwan to be supported by a portfolio of corporate offtakers,” he said. “Fengmiao 1 sets a new benchmark for the country’s fast-growing offshore wind market.”
