HICL Infrastructure Company Limited (LON: HICL), the listed infrastructure investment company advised by InfraRed Capital Partners Limited, has today announced that Diamond Transmission Partners, a consortium comprising the Company, Diamond Transmission Corporation Limited (a subsidiary of Mitsubishi Corporation) and Chubu Electric Power Co., Inc. has been selected by Ofgem as the preferred bidder to own and operate the Walney Extension Offshore Wind Farm offshore transmission link.
The offshore transmission owner regime covers regulated assets where the OFTO takes ownership of an operational transmission asset and receives contractual, availability-based revenues over a 20-year period. The OFTO does not have exposure to construction risk, electricity production or power price risk. The Walney OFTO represents the fourth successful bid by the partnership of HICL and Diamond Transmission Corporation Limited, the others being the Burbo Bank Extension OFTO which has reached financial close, and the Race Bank OFTO and the Galloper OFTO where Diamond Transmission Partners have previously been selected as preferred bidder, in June 2018 and November 2018 respectively.
The consideration for HICL Infrastructure Company Limited’s 40% share of the economic interest in the Walney OFTO is expected to be approximately £23m. Completion of the acquisition is expected towards the end of this calendar year.