In Taipei, the Hai Long Offshore Wind (OFW) Project signed Taiwan’s first large-scale Balance of Plant (BOP) Preferred Supplier Agreement (PSA) with local company CSBC DEME Wind Engineering (CDWE), marking another significant milestone in realising the localisation of Taiwan’s offshore wind industry.

The Hai Long Project consists of Canadian-based independent power producer Northland Power International (NPI), Yushan Energy Pte Ltd and Mitsui, who have joined forces to develop the Hai Long 2 and 3 wind farms in zones 18 and 19 offshore Changhua. CDWE is a joint venture between CSBC Corporation, Taiwan and DEME Offshore.

The agreement with CDWE is for the BOP package of the Hai Long project and includes the Engineering, Procurement, Construction and Installation (EPCI) of the foundations, inter array cables, export cables and transportation and installation of the turbines. From the start of the bidding process, Hai Long and CDWE have worked closely together, committing to meeting the localisation requirements of the Industrial Development Bureau and Bureau of Energy.  To that end, CDWE launched a large-scale audit consultation of Taiwanese steel fabricators and marine engineering services providers in February 2019, to assess local capabilities, and set up a local team under its direction. Beginning in 2023, offshore installation works will take place, optimising local materials and skills in constructing the Hai Long 2 and 3 OWF.

CDWE was set up by CSBC and DEME Offshore this February to facilitate co-operation with European experts and to ensure the availability in Taiwan of foreign expertise in the fields of project management, fleet management, installation techniques and marine works safety. CDWE Chairman (and CSBC President) Robert Tseng stated that CDWE’s expertise should become a pillar of localisation and a driving force for Taiwanese marine engineering professionalism. CDWE also signed a PBA for the WTG transport and installation scope of CIP’s Changfang-Xidao OWF in May 2019. Today’s large-scale EPCI agreement marks the realisation of an important step in localisation, as the local content involved in every step of the project from engineering to installation will be maximised. Hai Long OWF will be a litmus test for localisation.

Robert Tseng further explains that this type of large-scale Balance of Plant scope is the most challenging contract form in offshore wind: the contractor must have an enormous amount of expertise in marine works and project management, and concurrently also have the right vessels to make the project a success. This contract award is also an important step in the development of CDWE and its fleet in Taiwan by the cooperation with DEME Offshore main installation vessels. The optimal vessel selection and good project management skills evidenced by CDWE should make this project a resounding success.

This PSA ceremony is held under the auspices of the Ministry of Economic Affairs’ officials as well as the participating local contractors’ senior management. Under the leadership of CDWE, this PSA can become the driving force for the internationalisation of the Taiwanese marine engineering industry and the localisation of Taiwanese offshore wind. This will allow Taiwan a more stable supply of green energy, and a confident future outlook.

Image source: Courtesy of DEME Offshore

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