Aberdeen-based offshore wind development company SeaEnergy (AIM: SEA) has entered an agreement with Taiwan Generations Corporation (TGC) to jointly plan, construct and operate windfarms in Taiwan, looking to capitalise on the country’s growing emphasis on renewable energy.
The companies will develop a variety of projects from TGC’s pipeline, starting with the Canghua Offshore Windfarm, which is planned to have an installed capacity of up to 600 MW (megawatts). The farm, which will be located on the west coast of Taiwan, about 2.5 to 10 kilometres from the shore in water depths up to 30 metres, will initially be jointly owned by the two companies with SeaEnergy having the right to retain a 25% working interest in the windfarm developments.
Studies necessary for obtaining regulatory permit have already commenced.
Offshore farms such as Canghua will be instrumental in reaching the government’s target level of 8,450MW of electricity, representing 15% of the total, to be generated from renewable resources by 2025. The offshore wind potential is perceived as the fastest way to attain such a goal.
“We are very much looking forward to working with TGC to develop The Changhua Offshore Windfarm and to begin fulfilling Taiwan's offshore wind potential. Taiwan represents an opportunity for SeaEnergy to internationalise quickly in an environment where a project can be consented at a reasonably early date and at reasonable cost,” said Chief Executive of SeaEnergy’s subsidiary SeaEnergy Renewables Limited Joel Staadecker.
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Edison Investment Research issued a update on SeaEnergy in response to the JV news. The research firm said the JV provided the UK-focused company with a platform for more international growth. However, Edison based its valuation on the projects that it has successfully tendered for, including its tow sites offshore Scotland, which gave it a total pipeline of 450MW (megawatt). Assuming the projects are fully funded and SeaEnergy maintains a 25% stake throughout the project life, the farms are valued at 0.21 pence per MW net to SeaEnergy shareholders, totalling 95 pence per share.
Shares in SeaEnergy added 1.5% on the news.