Balfour Beatty has completed the acquisition of the £164m Thanet offshore transmission project in Kent.
The project connects the Thanet offshore wind farm to the onshore transmission grid through a high voltage electricity transmission system.
The assets acquired by Balfour Beatty include one offshore and one onshore substation, and over 50 km of subsea cables. It will invest more than £20m of equity into the project.
Balfour Beatty executive chairman Steve Marshall said: “For the investments business, the offshore transmission market is an important part of its strategy to diversify into new markets and achieving financial close on our second project is a great success.
“This project, and this market, is also an example of how Balfour Beatty Services can derive revenues from the investments business. Today’s announcement supports our wider strategy of developing our delivery capability in the offshore renewables industry,” he added.
Earlier this month, Balfour Beatty rejected a £1bn bid from John Laing Infrastructure Fund for its PPP portfolio, in part because the investments business was “material to the Balfour Beatty group as a whole”, it said.
Balfour Beatty’s services division is responsible for the Thanet OFTO’s assets’ operations and maintenance under a licence granted by Ofgem with a 20-year revenue stream.
The Thanet OFTO was previously operated by Vattenfall. It generates enough electricity for around 200,000 homes each year.
In November 2013, Balfour Beatty achieved financial close on the £317m Greater Gabbard OFTO in Suffolk. It is also preferred bidder for the Gwynt y Môr OFTO in North Wales, which is expected to close in Q1 2015.