EDF EN Canada Inc., a subsidiary of EDF Energies Nouvelles, and Enbridge Inc. (TSX: ENB) (NYSE: ENB) said April 8 that they have jointly signed a purchase agreement with Greengate Power Corp. to acquire the 300 MW Blackspring Ridge Wind Project in Canada.
Located in Vulcan County, Alberta, 50 kilometers north of Lethbridge, Blackspring Ridge will be the largest wind project in Western Canada when operational. EDF EN Canada and Enbridge will each own 50% of the project. The project represents the largest investment in wind energy in the province at approximately $0.6bn.
The project will include 166 Vestas V100-1.8 MW wind turbines. EDF EN Canada will build the project under a fixed price engineering, procurement and construction contract with construction expected to start in the second quarter of 2013 and reach commissioning in mid-summer 2014.
“The Canadian renewable energy market is a strong focus for EDF EN, having a significant presence in Ontario and Quebec since 2007. The Blackspring Ridge project presents a unique opportunity to establish EDF EN Canada in Western Canada and specifically in Alberta – a province with a promising electricity market,” said Cory Basil, Vice President, Development at EDF EN Canada. “Securing this project builds upon our relationship with Vestas and Enbridge and adds to our existing portfolio of over 1,000 MW of renewable energy projects in Canada. It further demonstrates the benefit of geographic diversification and illustrates our business objectives to balance and optimize assets to preserve our market leadership position across North America. And as important, the firm order is positive news for Vestas’ US based manufacturing plants.”
“Blackspring Ridge is an important addition to Enbridge’s fleet of renewable projects as it significantly expands our wind energy portfolio in the Alberta market, which we first entered nearly a decade ago with our Magrath and Chin Chute windfarms,” said Don Thompson, Vice President, Green Energy, Enbridge Inc. “Alberta is an attractive environment for wind investments due to its high wind capacity factor and access to transmission. Enbridge’s investment represents a further addition to its large suite of attractive commercially secured growth projects, reinforcing the continuation of its industry leading growth rate through 2016 and well beyond. We welcome this opportunity to continue expanding our renewable energy assets into Western Canada.”
“The project also allows Enbridge to maintain its position as the second largest wind energy generator in Canada,” Thompson added. “We’re pleased to continue our relationship with EDF EN Canada and Vestas.”
Renewable Energy Credits (RECs) generated from the project are contracted to Pacific Gas and Electric under a 20-year purchase agreement. The electricity will be sold into the Alberta power pool with pricing substantially fixed through mid- and long-term contracts.
EDF EN Canada, an EDF Energies Nouvelles Company, is a market leader in renewable energy development, with an integrated approach that covers every aspect of project origination and implementation through to electricity generation, operations and maintenance.
Enbridge Inc. is a North American leader in delivering energy and one of the Global 100 Most Sustainable Corporations. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world’s longest crude oil and liquids transportation system. The company also has a significant and growing involvement in natural gas gathering, transmission and midstream businesses, and an increasing involvement in power transmission. As a generator of energy, Enbridge has interests in close to 1,000 MW of renewable and alternative energy generating capacity and is expanding its interests in wind and solar energy, geothermal and hybrid fuel cells.