CPP Investments to pay EUR 200m in French offshore wind deal
Offshore wind farm. Image Source: Equinor
Canada Pension Plan Investment Board, or CPP Investments, announced on Tuesday it will spend around EUR 200 million (USD 217m) as part of the deal to buy 49% of Enbridge Inc's (TSE:ENB) interest in a roughly 1.5-GW offshore wind portfolio in France.
As previously announced, CPP is acquiring almost half of Enbridge's shares in Eolien Maritime France SAS. The latter is a 50/50 joint venture between the Canadian energy company and the renewables arm of French power utility EDF (EPA:EDF) and holds three offshore wind projects -- the 480-MW Saint Nazaire, the 498-MW Fecamp and the 450-MW Courseulles.
Under the agreement, CPP Investments will pay approximately EUR 80 million for 49% in the vehicle that holds Enbridge's stake in the JV, with an additional follow-on investment of EUR 120 million as the first of the three wind projects progresses through construction. The Canadian investor could also spend over EUR 150 million on the other two projects, it stated.
The transaction is subject to regulatory clearance and is expected to be finalised in the last quarter of this year.
Eolien Maritime France secured the offshore wind projects back in 2012 through a federal tender. Commissioning is expected to happen in phases between 2022 and 2024.