TSMC will now get the full production of Ørsted’s 2b & 4 offshore wind farm, Greater Changhua of 920MW as both companies Ørsted and TSMC have signed a corporate power purchase agreement (CPPA) making it a largest-ever contract of renewable energy industry.
According to this agreement it’s a 20-year fixed-price contract which will start after Greater Changhua 2b & 4 attains commercial operations in 2025/2026 depending on Ørsted’s final investment decision and grid availability.
A largest semiconductor foundry in world known for green manufacturing, TSMC has firmed its long-term aim to bring its name in the works of environmental sustainability after this CPPA agreement.
Senior Vice President at TSMC’s Information Technology and Materials Management & Risk Management segment, J.K. Lin said: “TSMC is happy for this opportunity to collaborate with Ørsted and not only expand the adoption of renewable energy, but also to work towards Taiwan’s energy transition to build world-class industrial environment. As a corporate citizen, TSMC is taking ‘green action’ to carry out our responsibility to environmental protection.”
Ørsted’s Greater Changhua 2b & 4 offshore wind farm will earn against the provision of power including T-RECs certificate during the contract period of 20-year. This price is more than Ørsted’s previous feed-in-tariff secured via the outcome of Taiwan’s first offshore wind auction in June 2018. This makes the project financially strong and thus will help Ørsted to keep the gains with the Greater Changhua 2b & 4 and strengthen the chances of final investment decision. While the moving into a largest-ever corporate PPA with the TSMC company makes Ørsted more trusted renewable energy partner for corporates and governments.
Executive Vice President and CEO of Ørsted Offshore, Martin Neubert said, “We commend TSMC for their leadership in renewable energy sourcing and for taking tangible action to deliver on their ambitious greenhouse gas reduction targets. By sourcing renewable energy at an unprecedented scale, TSMC demonstrates strong support for the development of renewable energy.”
Ørsted President for Asia-Pacific region, Matthias Bausenwein commented, “The agreement between Ørsted and TSMC signed today underlines Ørsted’s pioneering role in the development of renewable energy in the Asia Pacific.”