3i Infrastructure and Macquarie Capital invest in UK OFTO project

3i Infrastructure plc and Macquarie Capital have invested in the West of Duddon Sands Offshore Transmission Owner (WODS OFTO) in UK.

Specifically 3i Infrastructure has announced it has reached financial close on its £23 million (US$36 million) investment for a 50% holding in the WODS OFTO 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.15 km 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 389 MW and provides clean, renewable energy for more than 270,000 UK households each year.

Peter Sedgwick, Chairman, 3i Infrastructure plc, commented:

“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.”