Canadian energy company Northland Power has agreed to sell its 49% stake in the 1.04GW Hai Long offshore wind project in Taiwan to Gentari International Renewables.

The deal will allow Northland Power to partner with Gentari through an equity consideration of nearly TWD18bn ($586m).

The final equity consideration is subject to closing adjustments and the purchase and sale agreement terms.

Once the deal has closed, Gentari will hold a 29.4% indirect equity interest in the Hai Long offshore wind farm.

Northland will continue as Hai Long’s single largest shareholder, with a 30.6% stake. It will also continue to lead the project’s construction and operations activities.

Completion of the deal is subject to customary and regulatory approvals, as well as the project reaching financial close.

Northland president and CEO Mike Crawley said: “Today’s announcement is a significant milestone for Northland as it represents the first transaction as part of our partnership model.

“We are delighted to welcome Gentari as part of the partnership in the Hai Long offshore wind project and look forward to developing the broader strategic partnership in Hai Long and potentially further beyond.

“This partnership is further evidence of the global interest in developing renewable energy projects to aid global decarbonisation efforts and the transition to low carbon economies.”

The two companies have also signed an exclusivity agreement to promote the growth of Taiwan’s offshore wind industry.

Gentari chief renewables officer Mohammad Azhar said: “This marks Gentari’s inaugural entry into the offshore wind segment.

“The partnership with Northland offers an opportunity for even greater collaboration in developing other offshore wind opportunities in Taiwan and beyond.”

Based in Toronto, Northland owns or holds an interest in 3GW of operating capacity, as well as more than 14GW of capacity in development.

Earlier this year, the company signed a corporate power purchase agreement for its Hai Long 2B and 3 projects.