HICL Infrastructure Company Limited (LON:HICL), the listed infrastructure investment company advised by InfraRed Capital Partners Limited, today announced that Diamond Transmission Partners, a consortium comprising the Company and Diamond Transmission Corporation Limited (a subsidiary of Mitsubishi Corporation), has been selected by Ofgem as the preferred bidder to own and operate the offshore transmission link to the Galloper Offshore Wind Farm project.
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 Galloper OFTO represents the third successful bid by the partnership of HICL and Diamond Transmission Corporation Limited, the first two being the Burbo Bank Extension OFTO which has reached financial close and the Race Bank OFTO where Diamond Transmission Partners was selected as the preferred bidder in June 2018.
The consideration for HICL’s 50% share of the interest in the Galloper OFTO is expected to be approximately £15m. Completion of the acquisition is expected in mid-2019.