UK Export Finance (UKEF) is set to provide a £184 million credit guarantee to facilitate the construction of the Fengmiao 1 offshore wind farm in Taiwan, with an installed capacity of 495 megawatts (MW). This initiative is expected to secure £55 million in manufacturing and service export contracts for British suppliers, strengthening the UK’s position in the global clean energy market.
Under the terms of the agreement, Cadeler will supply an installation vessel along with crew, sea-fastening services, and crane operators for the project. The Fengmiao 1 wind farm, located off the west coast of Taichung City, is scheduled for completion in 2027. This project is part of a broader financing package totaling US$3.7 billion orchestrated by Copenhagen Infrastructure Partners (CIP), which includes collaboration with export credit agencies from Denmark, the Netherlands, Poland, Belgium, and Taiwan.
UKEF plays a vital role as the UK government’s export credit agency, providing crucial support to help British businesses secure and fulfill international contracts. This deal aligns with the government’s Plan for Change, which aims to stimulate economic growth across the UK while promoting expertise in clean growth. Business and Trade Secretary Jonathan Reynolds remarked, “We are using every tool at our disposal to enable British businesses to succeed. 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.”
Mikkel Gleerup, Chief Executive at Cadeler, expressed gratitude for UKEF’s support, stating, “This project is an important milestone in Cadeler’s expansion into Taiwan’s offshore wind market. UKEF’s backing highlights the significance of our operations in the UK, with our UK-owned installation vessels and East Anglia-based team supporting offshore wind development both at home and abroad.”
Thomas Wibe Poulsen, partner and head of Asia-Pacific at CIP, noted, “Financial close on Fengmiao 1 is the culmination of years of hard work and dedication. It is the first offshore wind project in Taiwan supported by a portfolio of corporate offtakers, setting a new benchmark for the country’s rapidly maturing offshore wind market.”
The Fengmiao 1 offshore wind farm exemplifies how international partnerships and financial backing can drive the transition to renewable energy. With UKEF’s support, this project not only bolsters the UK’s clean energy exports but also contributes significantly to Taiwan’s growing offshore wind sector, paving the way for future investments and innovations in renewable energy.
