TORONTO (miningweekly.com) – Canadian oil and gas infrastructure giant Enbridge has agreed to buy a 50% interest in French offshore wind development company Éolien Maritime France (EMF), for C$282-million.
NYSE- and TSX-listed Enbridge would co-own the company with EDF Energies Nouvelles (EDF EN), a subsidiary of Électricité de France (EDF), dedicated to renewable energy.
Closing of the acquisition was expected to occur on or around May 19.
Enbridge advised that it and its new partners would develop three large-scale offshore wind farms off the coast of France that would produce a combined 1 428 MW of electricity. Development of the three projects was already under way; however, construction was still subject to final investment decisions and regulatory approvals.
"This is a unique and strategic opportunity for Enbridge to further grow our investment in renewable power and build on our existing presence in European offshore wind generation. This investment in EMF advances our priority to build new business platforms that will extend and diversify growth," Enbridge president and CEO Al Monaco commented on Tuesday.
The projects comprised the 498 MW Eoliennes Offshore des Hautes Falaises offshore wind farm, located off the coast of Fecamp; the 450 MW Eoliennes Offshore du Calvados project, located off the coast of Courseulles-sur-Mer; and the 480 MW Parc du Banc de Guerande project, located off the coast of Saint-Nazaire.
Enbridge, which already owned interests in 24 renewable-energy facilities, either operating, secured or under construction, with a net generating operating capacity of nearly 2 000 MW, advised that each of the three wind projects had been awarded a 20-year power purchase agreement, under which EDF would pay an indexed fixed price for 100% of the power generated by each facility and through which EMF would also be significantly insulated from variances in wind capacity.
The three projects were in an advanced stage of development with a permitting process close to completion, and significant technical and environmental studies already performed. Front-end engineering and design had been completed, construction contracts tendered and bids received.
Subject to Enbridge taking positive construction decisions on each project individually, the company would potentially invest up to C$4.5-billion in total for all three projects. Should the projects be built, construction would start gradually from 2017 and continue for the next five years through 2022.
Enbridge was the co-owner with EDF Energies Nouvelles' Group in four operating onshore wind projects in North America.