HICL consortium wins bid for Liverpool's Burbo Bank windfarm

HICL Infrastructure Company is part of a consortium that has won the tender from electricity regulator Ofgem to own and operate the offshore transmission link to the Burbo Bank Extension windfarm in Liverpool Bay.

HICL, the FTSE 250-listed infrastructure investment company, joined up with Mitsubishi subsidiary Diamond Transmission Corporation to form the Diamond Transmission Partners consortium and was on Tuesday selected by Ofgem as the preferred bidder.

The consideration for HICL's 50% share of the interest in Burbo Bank OFTO is expected to be up to £13m, with completion of the acquisition is expected in early 2018.

The Burbo Bank extension's 32 wind turbines have a combined capacity of 258MW that can power 230,000 homes, with an estimated value of the transmission assets of £180.6m.

Ofgem said the fourth tender round saw the lowest bids to date as a proportion of the asset value.

Under the offshore transmission owner (OFTO) regime, the consortium will take ownership of the Burbo asset and receive revenues over a 20-year period, with the OFTO not exposed to construction risk, electricity production or power price risk.

The Diamond Transmission Partners consortium is also participating in phase one of Tender Round 5, which comprises three further bids for OFTO assets.

The consideration for HICL's 50% share of the interest in Burbo Bank OFTO is expected to be up to £13m.