Ofgem Announcement on Beatrice OFTO Investment
OFGEM ANNOUNCEMENT ON BEATRICE OFTO INVESTMENT
10 June 2021
International Public Partnerships Limited ('INPP' or 'the Company'), the listed infrastructure investment company, notes that Ofgem, as anticipated, published a notice under Section 8A of the Electricity Act 1989 on 9 June 2021 relating to the Beatrice Offshore Transmission project ('OFTO')[1]. This is a key step towards reaching financial close on the investment that the Company expects to make in the project. As previously reported, the Company expects to invest c.£ 50 million into the project upon financial close, anticipated to be in July 2021.
The project will be the Company's eighth OFTO investment and relates to the transmission cable connection to the offshore wind farm located in the Outer Moray Firth, approximately 13.5km off the Caithness coastline in Scotland. The wind farm consists of 84 x 7MW wind turbine generators with an installed capacity of 588MW connected to two offshore substation platforms ('OSP') located within the boundaries of the Beatrice wind farm. It is Scotland's largest operational offshore wind farm.
This investment will increase the Company's contribution to the UK's transition to a zero-carbon economy. The Beatrice OFTO will transmit green electricity equivalent to around 450,000 UK homes, increasing the number of homes that are powered by the Company's OFTO portfolio to approximately 1.8 million homes.
The Company takes no exposure to electricity production or price risk but is paid a pre-agreed, availability-based revenue stream over 23 years which is fully linked to UK inflation ('RPI').
The Company has a strong near-term OFTO pipeline, being preferred bidder on Rampion and East Anglia One OFTOs which represent c.£135 million of additional investment commitments.
ENDS.
For further information:
Erica Sibree/Amy Edwards +44 (0)20 7939 0558/0587
Amber Fund Management Limited
Hugh Jonathan +44 (0)20 7260 1263
Numis Securities
Ed Berry/Mitch Barltrop +44 (0)
20 3727 1046/1039
FTI Consulting
About International Public Partnerships (INPP):
INPP is a listed infrastructure investment company that invests in global public infrastructure projects and businesses, which meets societal and environmental needs, both now, and into the future.
INPP is a responsible, long-term investor in 130 infrastructure projects and businesses. The portfolio consists of utility and transmission, transport, education, health, justice and digital infrastructure projects and businesses, in the UK, Europe, Australia and North America. INPP seeks to provide its shareholders with both a long-term yield and capital growth.
Amber Infrastructure Group ('Amber') is the Investment Adviser to INPP and consists of over 150 staff who are responsible for the management of, advice on and origination of infrastructure investments.
[1]Offshore electricity transmission owner licensed entity.
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