Notice

Category A project supported: Fengmiao 1 Offshore Windfarm

Published 1 July 2025

NOTICE

Category A project supported: Fengmiao I Offshore Windfarm, Taiwan

1. PROJECT DESCRIPTION

UK Export Finance has agreed to provide support to the Fengmiao Wind Power Co., Ltd in respect the construction of the Fengmiao I Offshore Windfarm (the “Project”), involving 33 wind turbines generators, 35 km from the shoreline of Taichung City, Taiwan.

A key aim of the Project is to assist in decreasing Taiwan’s dependency on imported energy sources, whilst increasing local energy supply.

The Project includes:

• The Project’s onshore components consist of onshore cables, a land-based cable route, and one onshore substation. The onshore substation will be situated in the northern zone of Taichung Port within the Qingshui District of Taichung City. It will be connected to the grid via underground onshore cables at TaiPower’s existing Chungqing Substation.

• The Project’s Wind Turbine Generators (WTG) have a capacity ranging from 9 to 20 MW, with a hub height between 112 m and 179 m, a blade diameter of 174 m, and a total height varying from 100 m to 304 m. These turbines will be connected through 66 kV subsea inter-array cables to an offshore substation, which will increase the voltage to 220 kV.

• The Project doesn’t include any associated facilities

Other Export Credit Agencies (ECAs) involved include Atradius Group, Credendo - ECA, Export and Investment Fund of Denmark (EIFO), KUKE (Export Credit Agency in Poland), and the Taiwan Export-Import Bank.

2. PROJECT SECTOR

The Project is in the renewable energy sector.

3. PROJECT SPONSORS

The Project is being developed by Fengmiao Wind Power Co., Ltd.

4. UK EXPORTERS

The UK Supplier is Seajacks UK Limited

5. EXPORT CREDIT AGENT BANK

Standard Charter Bank

6. AMOUNT OF UK EXPORT FINANCE SUPPORT

The maximum liability of the support is approximately GBP 237.9m

7. OECD COMMON APPROACHES and Equator Principles

UK Export Finance categorised the Project as Category A i.e. having potentially significant environmental, social and human rights (ESHR) impacts in accordance with the definition in the Organisation for Economic Co-Operation and Development (OECD) Recommendation of the Council on Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence (“Common Approaches”), OECD/LEGAL/0393 and the Equator Principles (2020).

As required by the OECD Common Approaches, UK Export Finance disclosed its possible involvement in the Project. A notification was posted on the UK Export Finance web site on 8 January 2025, which directed interested parties to the contact from where published ESHR information can be sourced. UK Export Finance did not receive any comments from interested parties.

Environmental Resources Management Asia Ltd (ERM) was commissioned by the Project to undertake an independent environmental and social due diligence review on behalf of the Lender group/ECAs

8. Environmental, social and human rights STANDARDS

Project related ESHR documentation was reviewed for their alignment against the 2012 International Finance Corporation (IFC) Performance Standards (PS) on Environmental and Social Sustainability and the World Bank Group Environmental, Health and Safety (EHS) Guidelines.

The applicable IFC PS were: - PS1: Assessment and Management of Environmental and Social Risks and Impacts; - PS2: Labour and Working Conditions; - PS3: Resource Efficiency and Pollution Prevention; - PS4: Community Health, Safety and Security; - PS5: Land Acquisition and Involuntary Resettlement; - PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources; - PS8: Cultural Heritage;

The applicable World Bank Group EHS Guidelines were: - General EHS Guidelines (2007); - EHS Guidelines for Wind Power (2012) - EHS Guidelines for Electric Power Transmission and Distribution (2007)

9. NATURE OF ESHR IMPACTS

The review of potential ESHR risks and impacts took into account the following impacts, receptors and issues during the construction and operational phases of the Project. - Cumulative Impacts - Worker Welfare - Human Rights risks in Supply Chain - Management of third-party Contractors - Waste & Hazardous Waste Management - Marine Traffic Management - Physical Climate Risks - Economic Displacement of Fishermen

10. ASSESSMENT OF ESHR IMPACTS

A review was undertaken in line with the requirements of the OECD Common Approaches and Equator Principles to identify potential ESHR risks and impacts of the Project and how these would be effectively managed.

Environmental Resources Management Asia Ltd (ERM) were appointed to act as the LESA advising lenders, including UKEF, on this Project. The review was carried out in collaboration with Standard Chartered Bank and the Lender Group.

The review included: - A site visit undertaken in November 2024; - Desk-based review of project-related documentation: Environmental and Social Impact Assessment, Environmental and Social Management Plans, and Stakeholder Engagement Plan; and

• Follow-up meetings and interviews with relevant Project representatives. The results of this review formed the basis for the evaluation of the Project’s alignment with relevant international standards, and recommendations for future compliance and monitoring.

Taking account of the review, the Project was deemed to have potential to cause a number of adverse environmental and social impacts both during construction and operation. However, a proposed suite of controls as part of the Project’s environmental and social management systems should facilitate the management of these impacts.

11. Climate change considerations

UKEF considered the potential direct and indirect green house gas (GHG) emissions of the Project and effects of climate change factors on the Project as part of its ESHR review.

The Project is not considered to be a carbon intensive undertaking (such as fossil fuels or petrochemical) and so “high” GHG emissions in excess of relevant thresholds for quantification and reporting set by international standards were reasonably not envisaged.

The review revealed that the Project design has considered potential physical impacts of climate change such as changes to rainfall and weather patterns.

12. DECISION

Various actions have been agreed between the Project developer, operator, and parties involved in the financing, which are necessary to ensure the Project’s on-going alignment with international standards. Following agreement of these commitments, it was concluded that the Project should meet the relevant international standards over the Project cycle. UKEF has therefore decided to provide its support in respect of the supply of goods and services by UK exporters to the Project.

A condition of support is that Project will be subject to monitoring and reporting in order to provide satisfaction that the Project is aligned with the relevant international standards throughout the duration of support.

UK Export Finance

24 June 2025