Canadian energy company Enbridge Inc (TSE:ENB) has agreed to offload 49% of its 50% interest in the developer of three offshore wind projects in France to the Canada Pension Plan Investment Board, which operates as CPP Investments.
Under the agreement, which Enbridge unveiled in its first-quarter financial report on Thursday, the company will sell most of its shares in Eolien Maritime France SAS (EMF) in return for a payment which will include a project promote as well as 49% of all development capital spent by Enbridge since inception to the date of close. The specific entity is a 50/50 joint venture between Enbridge and French power utility EDF (EPA:EDF), which is involved in the development of three wind farm schemes in French waters -- the 480-MW Saint Nazaire, the 498-MW Fecamp and the 450-MW Courseulles.
The seller estimates it will get more than CAD 100 million (USD 71.6m/EUR 66.2m) in total from the deal and will additionally get contributions by CPP Investments from its pro-rata 49% share of all future development capital once the deal closes. Following the sale, Enbridge, through its remaining investment in EMF, will own 25.5% of Saint Nazaire, 17.9% of Fecam and 21.7% of the Courseulles project.
The joint venture firm won the three projects back in 2012 when the French government launched its first call for tenders in the offshore wind sector. While a final investment decision on the Saint Nazaire project was reached in 2019, such decisions are to be taken for the other two projects by 2021.
The deal is subject to regulatory clearance and is expected to be finalised in the last quarter of this year.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.