Enbridge to acquire 80% in 405-MW E.on wind portfolio in US

Nov 28, 2014 - Canadian energy company Enbridge Inc (TSE:ENB) said on Friday it will buy an 80% stake in a 405-MW operational wind portfolio in the US from German utility E.on SE (ETR:EOAN).

Enbridge noted that the wind portfolio has an agreed enterprise value of about USD 650 million (EUR 523m). The transaction is awaiting regulatory clearance.

The Canadian company’s investment is directed towards the 203-MW Magic Valley 1 wind park in Texas and the 202-MW Wildcat 1 wind farm in Indiana, both of which have been operational since 2012. Together, they produce enough power for over 120,000 homes. E.on will keep 20% stakes in the two plants and will continue to operate them following the sale.

"The transaction extends our renewable platform in the US, complementing our existing wind farm presence in Texas and establishing Enbridge in the Indiana renewable market,” said Vern Yu, senior vice president of corporate development for Enbridge. Through this purchase, the company will expand its own green energy portfolio to over 1,600 MW and will better position itself to double existing capacity by 2018, it noted.

Enbridge went on to say that the two E.on wind parks will also help it achieve its neutral footprint target for the generation of 1 kWh of renewable energy for each kilowatt of energy consumed by its liquids pipelines operations. The company expects to meet this commitment by 2015.

(USD 1.0 = EUR 0.804)

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