Enbridge buys Tri Global Energy to boost renewables platform
Image by U.S. Department of Agriculture.
September 30 (Renewables Now) - Canadian energy transportation and distribution group Enbridge Inc (TSE:ENB; NYSE:ENB) has clinched a USD-270-million (EUR 275.7m) deal to acquire US renewables developer Tri Global Energy (TGE) which has a development portfolio of over 7 GW of wind and solar.
"TGE will enhance Enbridge's renewable platform and accelerate our North American growth strategy," the Calgary-based firm’s CEO Al Monaco said in a press release published on Thursday.
The terms of the all-cash transaction, which also envisages the assumption of the target company’s debt, provide for potential contingent payment of up to USD 50 million, subject to the successful execution of TGE's project portfolio.
TGE claims to be the third-largest onshore wind developer in the US. Its development portfolio includes 3.9 GW of renewable generation projects previously sold to operators, in addition to 3 GW of late-stage development of wholly-owned projects that are expected to be put into operation between 2024 and 2028.
Enbridge started building its renewables platform with an initial investment in a wind farm in 2002. Since then, the Canadian firm has committed more than CAD 8 billion (USD 5.83bn/EUR 5.96bn) in capital to renewable energy and power transmission projects currently in operation or under construction.