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The Hai Long Offshore Wind Project, which recently received conditional approval for its Industrial Relevance Plan of Hai Long 2A wind farm, has extended its Preferred Supplier Agreement with Siemens Gamesa Renewable Energy, potentially laying the foundation for further localization opportunities. In addition to yesterday's announcement of a 300 MW pin pile contract being signed with CSBC-DEME Wind Engineering (CDWE) and CSBC Corporation, Taiwan, the Preferred Supplier Agreement with Siemens Gamesa, initially signed for the Hai Long 2A project, has been extended to Hai Long 2B and Hai Long 3, more than tripling the capacity awarded to Siemens Gamesa from 300 MW to 1,044 MW. Although these projects are not subject to localization requirements, the increased volume may result in localization opportunities for wind turbine components for Hai Long 2B and Hai Long 3.

 

CDWE, the preferred supplier for balance of plant of Hai Long, has announced yesterday that it signed a contract with local fabricator CSBC for the 300 MW pin pile capacity of the Hai Long 2A wind farm, demonstrating Hai Long’s implementation of localization. This new 1,044 MW Agreement, including plans to use Siemens Gamesa’s new SG 14-222 DD 14 MW turbine for Hai Long 2B and Hai Long 3, enables to position Siemens Gamesa for long-term development in the Asia-Pacific region and lays a foundation for the sustainable development of the local industry chain using Taiwan as their export hub in the APAC region.

 

Anchored by the Hai Long commitment, Siemens Gamesa will expand its offshore wind turbine nacelle assembly factory in Taichung Port, including nacelle assembly, testing, warehousing, office and outdoor storage, subject to final investment decision by the project partners. Siemens Gamesa plans to double the plot area, build two new production halls and a new warehouse, and double the number of employees working in the factory in order to broaden the scope for local hub and backend production.

 

Niels Steenberg, Siemens Gamesa’s Executive General Manager for Offshore in Asia-Pacific said: “We are delighted to expand our collaboration with the Hai Long partners. With our latest technology, the SG 14-222 DD and the 1,044 MW Hai Long projects, we will be striving to unlock a lower cost of electricity, and to enable the transition from fixed-subsidies to price-based auctions. This is yet another important for Siemens Gamesa, as well as the rest of the offshore wind industry in Taiwan.”

 

Felipe Montero, Project Director of Hai Long Offshore Wind Project stated: “As the anchor project for positioning Taiwan as the Asia-Pacific Export Hub of the offshore wind industry, Hai Long is committed to helping Taiwan develop a sustainable offshore wind industry and establish a local supply chain. Our selection of Siemens Gamesa as preferred supplier of wind turbines for Hai Long 2A was always based on their outstanding localization proposition. After Hai Long 2A conditionally passed the Industrial Relevance Review, we decided to expand our agreement with Siemens Gamesa to Hai Long 2B & Hai Long 3. This should create strong synergies to support Siemens Gamesa’s localization efforts, helping us meet our commitments for Hai Long 2A and creating additional localization opportunities for Hai Long 2B and Hai Long 3.”

 

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