(Photo Credit: Ørsted)[/caption] Taiwan Semiconductor Manufacturing Company (TSMC) signed a corporate power purchase agreement to offtake all of the energy from a 920-megawatt offshore wind farm in development. The deal is being called the world’s largest renewable energy contract of its kind.
Semiconductor foundry TSMC manufactured 10,761 products for 499 customers last year, and has global operations that span Asia, Europe, and North America. The company inked the historic renewable energy deal with Ørsted for offtake from the Greater Changhua offshore wind projects Changhua 2b and Changhua 4, which are scheduled for construction in 2025.
Ørsted has four offshore wind sites off the coast of Changhua County in the Taiwan Strait that the company says can be developed into a capacity that totals 2.4 GW. Under the agreement with TSMC, Ørsted’s Changhua 2b and Changhua 4 offshore wind farm will receive a price for power including Taiwan renewable energy certificates (T-RECs) during the 20-year contract period that is higher than the feed-in-tariff originally secured through Taiwan’s first offshore wind auction in June 2018.
“This improves the project’s financial viability and helps Ørsted mature Greater Changhua 2b and 4 toward a final investment decision,” the energy company said.
Taiwan’s transmission system operator Taipower plans to build a new transmission grid to accommodate the buildout of offshore wind, according to Ørsted. Taipower should provide Greater Changhua 2b and 4 with grid access in late 2025, with the wind farm fully commissioned in 2026, the company added.
The new PPA with Ørsted brings the total of TSMC renewable power purchase agreements to 1.2 gigawatts. “These purchases are expected to eliminate 2.189 million metric tons of carbon emissions per year,” the semiconductor foundry said.
“We hope to drive the industry towards low-carbon, environmentally friendly action, while supporting the United Nations’ Sustainable Development Goals to do our utmost to develop a sustainable semiconductor supply chain,” said J.K. Lin, senior vice president of information technology and materials management and risk management at TSMC.
