Asia Cement invests in green wind energy

Asia Cement Corp announced yesterday that the company is partnering with Copenhagen Infrastructure Partners (CIP) to develop an offshore wind farm that could be in operation before the end of 2020.

The TWD60bn (US$2.05bn) Hsinchu Offshore Wind Power Project is a 450MW off the Taiwan coast.

Asia Cement President, Kun-Yen Lee, said, the cement producer would cover TWD20bn-30bn of the development costs, in line with the 20-30 per cent self-financing ratio of most wind projects.

The local company is to hold a majority stake of more than 60 per cent in the wind farm, Mr Lee said, adding that CIP has not yet specified the size of the stake it would take in the project.

Based on state-run Taiwan Power Co’s plans to purchase green energy at TWD5.8/kWh, Asia Cement expects the project to generate an annual internal rate of return of 8-10 per cent, Mr Lee added.