JERA agrees equity stake with Macquarie for Formosa windfarm

Jack Unwin 9 October 2019 (Last Updated June 12th, 2020 12:27)

JERA has agreed to buy a 49% equity interest in the Formosa 2 offshore windfarm in Taiwan from Australian financial group Macquarie for an undisclosed fee.

JERA agrees equity stake with Macquarie for Formosa windfarm
JERA to buy stake in Formosa offshore windfarm from Macquarie. Credit: Ørsted A/S.

Japanese energy company JERA has agreed to buy a 49% equity interest in the Formosa 2 offshore windfarm in Taiwan from Australian financial group Macquarie for an undisclosed fee. JERA was supported by the Development Bank of Japan for the transaction.

Macquarie will continue to own a 26% stake in the windfarm, with Taiwanese company Swancor taking the remaining 25%.

JERA also owns a 32.5% equity stake in Formosa 1 offshore windfarm, with Macquarie also owning a 25% stake.

Macquarie’s share price fell on the Australian stock exchange from A$126.58 to A$125.41 following the news, giving it a current market cap of A$44.5bn.


Macquarie share price in 2019


Formosa 1 and 2

Formosa 1 and 2 are two offshore windfarms that are part of Taiwan’s efforts to install 5.7GW of offshore wind by 2025.

Formosa 1 is formed of 22 turbines provided by Danish renewable energy company Ørsted. It has a capacity of 128MW and is expected to be fully operational by the end of 2019. JERA and Macquarie own a 57.5% stake in Formosa 1, with Ørsted owning 32.5% and Swancor owning 7.5%.

Formosa 2 has a capacity of 376MW which is formed of 47 turbines provided by Siemens Gamesa Renewable Energy. It will come online in 2021 and it already has a 20-year power purchase agreement (PPA) in place with the Taiwan Power Company at a price of $186 per megawatt hour (MWh).

Macquarie

The Macquarie Group has a strong presence in the renewable energy space through its Green Investment Group.

As well as owning stakes in the Formosa offshore windfarms, Macquarie purchased a 40% stake in the East Anglia ONE windfarm for £1.6bn in August 2019.

Macquarie is also involved in the Asian Renewable Energy Hub project to develop 11GW of wind and solar projects in Australia.

JERA

JERA is a diversified energy company with assets in upstream oil, liquid natural gas and thermal power stations. It has a power generation capacity of 67GW in Japan and 9GW in the rest of the world, and has assets worth a total of JPY3.8bn ($354m).