Taiwanese chipmaking behemoth Taiwan Semiconductor Manufacturing Company (TSMC) has signed a 30-year Power Purchase Agreement with Northland Power to offtake 294MW of power for the underdevelopment Hai Long offshore wind farm off the Changhua coast of Taiwan.

The corporate PPA builds on an existing partnership, with TSMC already contracted to receive power from the project. The initial deal was signed in 2022 and covers 100 percent of the capacity of the Hai Long 2B and 3, which have a combined capacity of 744MW. The 2022 agreement has a 20-year tenor, which will commence once Hai Long reaches full commercial operations.

The latest deal covers the entire capacity of the Hai Long 2A project, adding 294MW to the original agreement. Following the cPPA, TSMC is now the sole offtaker of the 1.022GW offshore wind farm.

The Hai Long project is a joint venture between Northland Power (30.6 percent), Mitsui & Co. (40 percent), Gentari International Renewables (29.4 percent), and consists of three offshore wind sites: Hai Long 2A (294MW), Hai Long 2B (224MW), and Hai Long 3 (504MW). The project is expected to achieve full operations sometime in 2027, slipping from the original 2026 date.

“This agreement with TSMC reinforces the strategic importance of Hai Long. Once the switch is complete it will enhance the project’s long-term economic fundamentals and contribute directly to value creation for Northland and its shareholders,” said Christine Healy, president and CEO of Northland Power.

TSMC is one of Taiwan’s largest power consumers, accounting for around nine to 10 percent of the country’s national electricity usage. The company is targeting 100 percent of renewable energy for global operations by 2040 and net-zero emissions by 2050. In order to meet the ambitious target, TSMC has signed several renewable power agreements, including a 20-year 20,000GWh deal with Ark Power, a 1GW wind deal with WPD, and a 920MW PPA with Orsted.