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Macquarie Is Said to Seek Buyer for Stake in Taiwan Wind Farm

Bloomberg logoBloomberg 5/17/2018 Vinicy Chan and Anna Hirtenstein
The moon is seen behind a wind turbine at the Subplu wind farm, operated by Gunkul Engineering Pcl., in Huay Bong, Thailand, on Thursday, Nov. 2, 2017. Gunkul, the most expensive energy stock in Thailand, plans to invest more than 20 billion baht ($599 million) in Japanese solar projects to boost earnings growth.: Operations at the Gunkul Engineering Pcl Sri Chula Solar and the Subplu Wind Farms© Bloomberg/Bloomberg Operations at the Gunkul Engineering Pcl Sri Chula Solar and the Subplu Wind Farms

(Bloomberg) -- Macquarie Capital is seeking to pare its stake in Taiwan’s first offshore wind farm, people with knowledge of the matter said.

The Australian firm, which is an arm of Macquarie Group Ltd., has been reaching out to potential buyers for part of its 50 percent holding in the Formosa I project in the sea off northwestern Taiwan, according to the people, who asked not to be identified because the matter is private.

Macquarie Capital bought the stake last year, with Orsted A/S also acquiring 35 percent. Local developer Swancor Holding Co. owns the remainder. The first 8-megawatt stage of the facility was installed in 2016 as part of a drive by the nation to increase output of renewable energy.

Another 120 megawatts are slated for next year and the total development cost would be about $840 million, according to Tom Harries, a wind analyst at Bloomberg New Energy Finance in London.

A representative for Macquarie declined to comment.

The island nation’s government has said that it is planning to increase the share of renewable energy to 20 percent of total power output by 2025, up from 5 percent now. It selected seven companies in April to lead work on 3.8 gigawatts of offshore wind farms. Denmark’s Orsted won grid capacity for an additional 900 megawatts in the auction.

Macquarie, which owns stakes in both onshore and offshore wind farms, typically gets involved in the early stages of projects and sells down to other investors once they get closer to completion. The firm acquired the U.K.’s Green Investment Bank last year for 2.3 billion pounds ($3.1 billion), bolstering its presence in the renewable energy market.

To contact the reporters on this story: Vinicy Chan in Hong Kong at vchan91@bloomberg.net;Anna Hirtenstein in London at ahirtenstein@bloomberg.net

To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, ;Reed Landberg at landberg@bloomberg.net, Lars Paulsson

©2018 Bloomberg L.P.

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