Enbridge Inc. (TSX:ENB) (NYSE:ENB) said Nov. 28 that it will purchase an 80% interest in a portfolio of two wind farms in the U.S. from E.ON, one of the world’s largest investor-owned power and gas companies.
The agreed enterprise value for the portfolio is approximately US$650m. The 203-MW Magic Valley 1 wind farm located near Harligen, Texas, and the 202-MW Wildcat 1 wind farm near Elwood, Indiana, are operational and came into service in 2012.
“This strategic investment provides a significant contribution to our growth targets in power generation,” said Vern Yu, Senior Vice-President of Corporate Development for Enbridge. “The transaction extends our renewable platform in the U.S., complementing our existing wind farm presence in Texas and establishing Enbridge in the Indiana renewable market. E.ON is a global leader in renewables and we welcome the partnership with a company that is a safe, reliable and proven asset operator.”
Upon closing, the acquisition of these two wind farms will bring Enbridge’s total net generating capacity of green power projects to more than 1,600 MW and helps position the company to double existing capacity by 2018. The projects also further help Enbridge meet its Neutral Footprint commitment to generating a kilowatt hour of renewable energy for every additional kilowatt of energy consumed by its Liquids Pipelines business, a goal the company is on track to meet by 2015.
Eckhard Rummler, CEO of E.ON Climate & Renewables, said: “Thanks to our excellent project portfolio and our capabilities there is a vital demand in the market for assets built and operated by E.ON. We are happy to have found a reliable partner in Enbridge, who shares our approach of combining high class assets and safe operations.”
Under the terms of the agreement, E.ON will retain a 20% interest and remain the operator of the wind farms. E.ON currently operates more than 2,700 MW of renewable capacity in the U.S. Completion of the transaction is subject to regulatory approvals.
Enbridge, a Canadian company, is a North American leader in delivering energy and has been included on the Global 100 Most Sustainable Corporations in the World ranking for the past six years. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world’s longest crude oil and liquids transportation system. As a generator of energy, Enbridge has interests in more than 1,800 MW of renewable and alternative energy generating capacity and is expanding its interests in wind and solar energy and geothermal.