MHI Vestas deepens local offshore wind energy supply chain linkages with agreement to source multiple key wind turbine components from Taiwan-based Yeong Guan Energy Technology Group (YGG).
MHI Vestas has signed a purchase agreement with local Taiwanese company, YGG, to source additional components for upcoming production of V174 wind turbines to be installed offshore in Taiwan. The agreement covers rotor hubs, hub plates and nacelle base frames.
V174-9.5 MW wind turbines provided by MHI Vestas are due to be installed at the Changfang and Xidao projects off the coast of Taiwan, under development by CIP, beginning in 2022.
“We consider Taiwan to be a key market for offshore wind power, and we look forward to advancing the sustainable development of the supply chain by partnering with local companies,” said Maida Zahirovic, Taiwan Business Director at MHI Vestas. “We are working hard to deliver on the Taiwanese government’s ambition to be an offshore wind hub in Asia-Pacific, and we are delighted that YGG will be supporting us on this journey.”
YGG plans to invest over NT$ 5 billion at its facility in the port of Taichung to support the production of rotor hubs, hub plates and nacelle base frames in MHI Vestas’ projects. A new production line was set up to support the Changfang and Xidao projects, as YGG prepares to supply components to the Taiwanese market as part of MHI Vestas’ proven V174 wind turbine.
“With this purchase agreement, we look forward to working together with MHI Vestas on the delivery of the V174 wind turbine castings in Taiwan and more widely in Asia-Pacific,” said Andy Tsai, Vice Chairman at YGG. “We are well-prepared to deliver rotor hubs and nacelle base frames to MHI Vestas’ V174 turbine, due to substantial investments in our facilities and our wealth of experience. We are proud of the progress we have made, and require consistency in turbine technology to achieve return on our investment, which will ultimately support the sustainable development of the local offshore wind sector in Taiwan.”
In addition to this wind power contract with YGG, MHI Vestas has signed firm purchase agreements for critical components such as blades, switchgear and blade materials (bonding glue, resin, pultruded carbon plates), and has also signed a contract in Taiwan for tower supply.
Further supply chain contracts are expected for 2020, as MHI Vestas delivers on its intentions to meet localisation requirements set forward by the Taiwanese government.