MHI Vestas secures footprint in Taiwan with waterside manufacturing facility
December 2, 2020
MHI Vestas Offshore Wind and CIP Changfang & Xidao Offshore Wind Project lease Fortune Electric site in Taichung Harbour as preparations continue to carry out turbine hub and final nacelle-related assembly in Taiwan.
MHI Vestas has taken on significant acreage in Taichung Harbour as it ramps up preparations to deliver the world’s most ambitious offshore wind localisation plan in Taiwan.
MHI Vestas and developer Copenhagen Infrastructure Partners (CIP) have secured a 5000 square metre site located centrally in zone 1 of Taichung Harbour adjacent to the pre-assembly quayside of CIP’s Changfang & Xidao Offshore Wind Project, intended for assembly activities for some of the projects to be delivered in Taiwan using V174 technology. This site is being leased from Fortune Extra High Voltage Co., Ltd., a subsidiary of Fortune Electric Co., Ltd., and will be prepared for MHI Vestas’ operations.
For certain MHI Vestas projects, turbine hub assembly is expected to be carried out on the site, as well as final nacelle-related assembly and testing.
Hub assembly activities at Fortune’s site will involve some of the offshore wind components made locally in Taiwan, including hub plates from Yeong Guan Energy Technology Group (YGG) and spinner covers from the Atech / Fassmer (FACT) joint venture. YGG and FACT are among the many Taiwanese suppliers producing offshore wind turbine components as beneficiaries from MHI Vestas and CIP’s world-leading sustainable localisation plan, which has been approved by Taiwanese authorities.
“We are delighted to secure this centrally-located site from Fortune in Taichung Harbour,” said Maida Zahirovic, MHI Vestas Taiwan Business Director. “Sustainable localisation also requires sufficient sites for offshore wind project activities to be carried out safely. The Fortune site is a suitable location for some of the ground-breaking manufacturing work MHI Vestas is bringing to Taiwan. This will be a key central location for MHI Vestas’ activities in Taiwan and we are pleased to secure the space.”
Changfang and Xidao (CFXD) wind farm Chief Executive Officer Dennis Sanou said: “The Changfang and Xidao Offshore Wind Project has found with MHI Vestas a reliable partner in making sure that we can produce and install offshore wind turbines with the highest percentage of turbine components fabricated in Taiwan. We are glad to see that, by signing of the Fortune lease agreement, MHI Vestas has taken another positive step in securing its Taiwanese supply chain.”
Pedro Hsu, Chairman of Fortune Electric Co., Ltd, said: “Through stringent assessment and selection process, we feel deeply honoured being selected by the Changfang and Xidao Project and MHI Vestas to serve as the industrial correlated cooperation partner for the localization of offshore windfarm. Under the instructions of the Changfang and Xidao Project and MHI Vestas, it is hoped that the expansion and renovation of the plant site will be completed according to the planned quality and schedule. In this way, we will be able to complete the assembly of the future nacelle smoothly in order to contribute our best efforts in promoting the green energy policy established by the government.
Through the cooperation, it is also hoped that we may follow Changfang and Xidao Project and MHI Vestas to promote international market outside Taiwan. By combining the advantageous export performance accomplished by Fortune, we may promote our electrical products and services to the international green energy generation market in the future.”
The Fortune site comes with space for assembly of turbines, warehouse and office space, along with additional capacity for storage of components. The building is also equipped with an overhead cranes and adequate land bearing capacity, to transport large offshore wind turbine components around the site.
This lease agreement comes in the wake of multiple supply chain contracts that have been signed by MHI Vestas in Taiwan to meet the demand from CIP’s Changfang & Xidao Offshore Wind Project, including for local supply of blades, transformer, blade materials (bonding glue, resin, pultruded carbon plates), towers, switchgear, rotor hubs, hub plates, nacelle base frames, low voltage cabinets, UPS systems, and PCM assembly.
At present, MHI Vestas is the only wind turbine manufacturer to procure blades, transformer, blade materials, switchgear, and cables from within Taiwan.
About MHI Vestas Offshore Wind
MHI Vestas Offshore Wind is a joint venture between Vestas Wind Systems A/S (50%) and Mitsubishi Heavy Industries (50%). The company’s focus is to design, manufacture, install and service wind turbines for the offshore wind industry. The company aims to create sustainable value through offshore wind power by driving capital and operating savings and increasing the power output of wind turbines. An innovative force in offshore wind since its inception in 2014, the company is guided by its founding principles of collaboration, trust, technology and commitment.
MHI Vestas Taiwan Supply Chain Progress
- 15 May 2018: MoU for generators with TECO/The Switch
- 24 March 2020: Purchase agreement for blade manufacturing with Tien Li Offshore Wind Technology Co., Ltd.
- 28 April 2020: Purchase agreement for blade materials (pultruded carbon plates, resin, and bonding glue) with Swancor
- 23 June 2020: Purchase agreement for high voltage switchgear with Mitsubishi Electric / Shihlin Electric and Engineering Corporation
- 30 June 2020: Purchase agreement for rotor hubs, hub plates and nacelle base frames with Yeong Guan Energy Technology Group
- 13 July 2020: Contracts for fasteners with Boltun Corporation and cables with Walsin Lihwa Corporation
- 16 July 2020: Purchase agreement for PCM assembly, low voltage cabinets and UPS systems with KK Wind Solutions Taiwan
- 19 August 2020: Purchase agreement for tower supply with CS Wind / Chin Fong
- 9 September 2020: Purchase agreement for spinner cover and nacelle cover with Fassmer Atech Composites Taiwan Ltd.
- 11 September 2020: Purchase agreement for transformer with Hitachi ABB Power Grids / Shihlin Electric and Engineering Corporation
- 2 December 2020: Lease agreement from Fortune Electric Co., Ltd for assembly site in Taichung Harbour
About Changfang and Xidao Project
The Changfang and Xidao Offshore Wind Project (CFXD) is a 600 MW capacity project located off the western coast of Changhua, Taiwan. CFXD reached financial close in February 2020 and is currently under construction, expecting first power in 2022 and commercial operation date in 2024. Once completed, CFXD will generate enough renewable energy to power approximately 650,000 Taiwanese households.
The Project is owned by two energy infrastructure funds managed by CIP, as well as two Taiwanese life insurance companies, Taiwan Life and TransGlobe Life, with CIP contracting COP to lead construction work for the windfarm.
MHI Vestas Offshore Wind will provide the 62 turbines of the V174 9MW platform for the project. Sixty-two three-legged jacket foundations will be supplied by Century Wind Power, with the experienced Bladt Industries employed as key sub-contractor for the foundations.
Since CIP’s arrival in Taiwan in 2017, over 80 local companies have been engaged either directly or indirectly in the development and construction of CFXD. In 2019, the Project’s Industrial Relevance Plan secured approval from the Industrial Development Bureau, which falls under the Ministry of Economic Affairs. Together with the Zhongneng Project, CFXD meets localisation requirements across all aspects of procurement and construction, including foundation fabrication, wind turbine subcomponents manufacture, and offshore transportation and installation.
About Fortune Electric Co. Ltd.
Fortune Electric is founded under the expectation to run an outstanding international Chinese enterprise that originated in Tuchen Township of New Taipei City, as signified by the Chinese name. The company works in the following Product Categories:
Product: Transformer / Distribution Panel / Switchgear / Power Distribution Material /Intelligent Meter/ Electrical Vehicle Charger
Turnkey: Substation / Power Plant / Renewable Energy System / Offshore Wind Farm /PV Box / Solar Energy / Charger System Installation / Smart Grid System