A £1.2 billion deal has been agreed for the transmission assets of the world’s largest offshore wind farm.
The sale of the vital infrastructure linking Hornsea One to the National Grid on the South Humber Bank has been agreed between the joint venture of developer Ørsted and investor Global Infrastructure Partners and Diamond Transmission Partners.
It includes the onshore substation at North Killingholme, export cables, the offshore reactive compensation substation located partway between shore and the farm, and three offshore substations strategically located amid the 174 turbines.
High Holborn-headquartered DTP is a partnership between Diamond Transmission Corporation Ltd, a wholly-owned subsidiary of Mitsubishi Corporation, and Chubu Electric Power Co Inc.
Sale of this element is in accordance with the offshore transmission owner 'OFTO' regime, which enforces third party ownership.
Following a competitive tender, in February 2020, DTP was selected by Ofgem as preferred bidder. Due to the significant scale-up from all other completed wind farms, it is the biggest deal of its kind yet.
Ørsted, from its East Coast Hub base in Grimsby, will provide DTP with operations and maintenance services for the transmission assets under a long-term agreement.
DTP is already looking after assets at Ørsted’s Race Bank off the Lincolnshire coast, as well as Walney Extension off the North West coast - the wind farm from which Hornsea One took the ‘world’s largest’ title from when it was commissioned early last year.
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Galloper off the North Norfolk coast and Burbo Bank, also in the North West, complete the portfolio.
It pulls in project-specific investors to facilitate the deals.