MONTREAL -- Quebec's Casse de Depot et Placement will invest $1 billion into an offshore wind farm near Taiwan.
With the investment, the Caisse and its Taiwanese partner for the deal, Cathay PE, will jointly acquire 50 per cent of the Grand Changhua 1 offshore wind farm, which be located 35 to 60 kilometres off the coast of Taiwan.
The two companies will invest $3.4 billion to make the acquisition. A spokesperson for the Caisse confirmed the Crown corporation's participation is limited to $1 billion.
The construction of the farm is being carried out by a Danish firm which is financially involved in numerous offshore wind farms around the world.
“This investment in Taiwan, which represents an attractive market for the CDPQ, allows us to further diversify our presence in Asia, said Caisse senior vice-president Emmanuel Jaclot in a statement.
Jaclot added the project will “provide clean energy to more than 650,000 Taiwanese families.”
The farm will have a capacity of 605 MW.
It's the first investment in an Asian offshore wind farm in Canada. The Caisse previously invested in 2014 in the London Array 1 wind farm off the coast of the United Kingdom.
Construction on the farm is expected to be completed in 2022.
