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Balfour Beatty, the international infrastructure group, announces today that its consortium with Equitix has reached financial close for the £162.9 million Humber Gateway offshore transmission project (OFTO). Balfour Beatty will invest £12.5 million of the total required equity of £21 million.
The high-voltage electricity transmission link connects E.ON’s 219MW offshore wind farm in the North Sea, 8km from the east Yorkshire coast, to the onshore transmission grid. The 73 turbines are capable of generating enough electricity for around 170,000 homes each year.
The Balfour Beatty Equitix Consortium will own and operate the offshore transmission link to E.ON’s Humber Gateway wind farm for the next 20 years. Balfour Beatty’s Power Transmission and Distribution business will be responsible for the operation and maintenance of the OFTO’s assets, including one offshore and one onshore substation and two cable circuits consisting of 18 kilometres of subsea and 30 kilometres of land cable.
Ian Rylatt, Balfour Beatty Investments Chief Executive, said: “This is our fourth OFTO contract to reach financial close and further establishes our position in the offshore transmission market. Our technical expertise ensures we can efficiently and effectively, support the government’s targets to meet more of the UK’s energy needs through renewable sources.”
Hugh Crossley, Equitix’s Chief Investment Officer, said: “Equitix’s commitment to the offshore transmission market is testament to our investors’ appetite for long term, availability-based, inflation-linked, UK infrastructure. We are pleased to be working in partnership with Balfour Beatty and Ofgem for the benefit of our investors and stakeholders”.