Balfour Beatty and Equitix have sealed the deal for the £162.9 million Humber Gateway offshore transmission project (OFTO).

The high voltage electricity transmission link will connect Eon’s 219MW offshore wind farm in the North Sea, 8km from the East Yorkshire coast, to the onshore transmission grid.

The 73 turbines have the capability to generate enough electricity for around 170,000 homes every year.

Ofgem awarded the Balfour Beatty Equitix Consortium the preferred bidder status in September 2015 to own and operate the Humber Gateway offshore transmission link.

For the next 20 years, the consortium will own and operate the link to Eon’s Humber Gateway wind farm, while Balfour Beatty will invest £12.5 million of the total required equity of £21 million.

Balfour Beatty’s power transmission and distribution business will be responsible for the operation and maintenance of the OFTO’s assets, including one offshore and one onshore substation and two cable circuits consisting of 18km of subsea and 30km of land cable.

Ian Rylatt, Chief Executive of Balfour Beatty Investments, commented: “This is our fourth OFTO contract to reach financial close and further establishes our position in the offshore transmission market. Our technical expertise ensures we can efficiently and effectively, support the government’s targets to meet more of the UK’s energy needs through renewable sources.”

Among Balfour Beatty’s other offshore transmission investments are the £352 million Gwynt y Mor OFTO and the £164 million Thanet OFTO 2014.

The European Investment Bank will provide an £82 million 19 year loan for the Humber Gateway OFTO, which represents almost 50% of eligible projects costs and the long term EIB loan is alongside senior debt provided by three commercial banks.

Last month, Balfour Beatty restored its dividend and reduced losses in a sign that the company is returning to health after a tough two years that saw the construction group issue a series of profit warnings and fend off a takeover attempt.