May 9 (Renewables Now) - Canada-based energy infrastructure company Enbridge Inc (TSE:ENB) said today it has agreed to sell 49% of its interests in certain renewable power assets to the Canada Pension Plan Investment Board (CPPIB) for CAD 1.75 billion (USD 1.34bn/EUR 1.14bn).
The deal, involving the creation of a joint venture between the two sides, covers stakes in all of Enbridge's Canadian renewable power assets and two US assets -- the Cedar Point wind farm in Colorado and the Silver State North solar project in Nevada. It also includes 49% of the company's 49.9% stakes in the 497-MW Hohe See offshore wind project in Germany and its expansion known as Albatros. In addition, Enbridge and CPPIB have agreed to form a 50/50 joint venture to pursue other European offshore wind projects, which could be under development, construction, or in operation.
CPPIB will provide an additional CAD 500 million to fund its share of the remaining construction capital needed for the Hohe See projects.
The transaction is expected to close in the third quarter of 2018. Enbridge will continue to manage the renewable power assets.
Chief executive Al Monaco said the monetisation is in line with the company's three-year plan, announced in late 2017, and will contribute to its CAD-3-billion asset sales target for 2018.
Enbridge has said it wants to rationalise its asset mix to a pure regulated pipeline and utility business model, which emphasises low risk businesses and strong growth in three core businesses: liquids pipelines and terminals, gas transmission and storage and gas utilities.
(CAD 1 = USD 0.777/EUR 0.654)