Balfour Beatty has reached financial close on the £317m Greater Gabbard offshore transmission project in Suffolk.
The scheme will connect the Greater Gabbard wind farm off the coast of Suffolk to the National Grid, enabling the wind farm to power around 500,000 homes each year.
Balfour Beatty Investments is part of a consortium with Equitix and AMP Capital, and will invest £46m of the equity required for the project.
Balfour Beatty will jointly own the offshore transmission assets, including two offshore and one onshore substations and over 150km of sub-sea cable infrastructure.
It will also be responsible for their operation and maintenance under a long-term licence with a 20-year revenue entitlement.
Balfour Beatty chief executive Andrew McNaughton said: “Reaching close on Greater Gabbard reinforces Balfour Beatty’s leading position in the growing and potentially very large offshore transmission markets.
“It is also a significant step in the development of our investment business in non-PPP infrastructure markets, as well as our wider strategy of developing our delivery capability in the offshore renewables industry.”
It is Balfour Beatty’s first offshore transmission investment as part of Ofgem’s offshore transmission owner tender regime.
To date, Balfour Beatty has been names preferred bidder on three offshore transmission projects by Ofgem with the £163m Thanet scheme and the £346m Gwynt y Mor wind farm, which are expected to close in 2014.