3i Infrastructure plc LON:3IN has reached financial close on its £23 million investment for a 50% holding in the West of Duddon Sands Offshore Transmission Owner, from Dong Energy and Scottish Power Renewables. The remaining equity in the project will be acquired by Macquarie Capital.
The consortium was selected as preferred bidder following a competitive tender run by Ofgem in July 2014. The project involves the acquisition, financing and operation of power transmission cables and associated electrical equipment connecting the West of Duddon Sands offshore wind farm, located c.15km off Walney Island in the Irish sea, to the UK electricity grid in Heysham, Lancashire. The wind farm has 108 Siemens 3.6MW wind turbines which have a capacity of 389MW and provides clean, renewable energy for more than 270,000 UK households each year.
Peter Sedgwick, Chairman, 3i Infrastructure plc, said: “Our investment in this project represents another step in growing our portfolio of primary PPP and low-risk energy projects, delivering attractive risk-adjusted returns alongside our mid-market economic infrastructure investments.”
Ben Loomes and Phil White, Managing Partners and Co-heads, Infrastructure, 3i Investments plc, added:“We are pleased to announce the Company’s investment in the WODS OFTO project. 3i has extensive experience in the OFTO sector through its investment in Blue Transmission which holds a number of OFTO projects.”
3i Infrastructure plc is a Jersey-incorporated, closed-ended investment company, listed on the London Stock Exchange and regulated by the Jersey Financial Services Commission. The Company is a long-term investor in infrastructure businesses and assets. The Company’s market focus is on economic infrastructure in developed economies, principally in Europe, in the utilities, transportation and energy sectors, investing in operational businesses which generate long-term yield and capital growth. 3i Infrastructure also has investments in social infrastructure and is building its exposure to primary PPP and low risk energy projects. 3i Investments plc, a wholly-owned subsidiary of 3i Group plc, is authorised and regulated in the UK by the Financial Conduct Authority and acts as Investment Adviser to 3i Infrastructure plc.