HSBC has provided two green guarantees for suppliers to offshore wind energy installations in Taiwan, the latest in a string of deals as the island ramps up plans to switch from nuclear to renewable energy.

The two guarantees total NT$310mn (US$10.9mn). The first, valued at NT$240mn and with a validity of one year, is being issued to Century Iron and Steel Industrial, a Taiwan-based company which is providing 69 pin piles to Copenhagen Infrastructure Partners (CIP) for the Changfang and Xidao offshore wind farm. Once operational, the wind farm is expected to supply Taiwan with 589MW of energy – forming a crucial part of the country’s strategy to switch 20% of its energy production to renewable sources within the next five years.

The wind farm is being constructed in multiple phases. Located between 13 and 15km off the coast of Changhua County in western Taiwan, its 62 turbines are planned to have a joint installed capacity of around 600MW.

The first phase of construction is scheduled to be completed by the end of 2021, providing around a sixth of that energy output. The second, far larger, phase is scheduled for the start of 2024.

According to HSBC Taiwan, the guarantee will help deepen the cooperation between local suppliers and overseas developers, and continue to promote the development of offshore wind energy in Taiwan.

The second guarantee, valued at NT$70mn, will last for 32 months. It has been arranged for Hung Hua Construction, a domestic dredging and nearshore construction company, and covers the contract execution of guard vessels for the Changfang and Xidao offshore wind farm.

HSBC notes that the two guarantees fulfil the Loan Market Association’s (LMA’s) green loan principles, adding that its green guarantees are dedicated to supporting eligible environmentally sustainable trade activities.

“Apart from vigorously supporting the development of renewable energy, we are also actively participating in the innovation of green finance products, helping to foster a thriving and resilient green financing ecosystem in Taiwan,” says Stanley Hsiao, head of commercial banking at HSBC Taiwan.