Emerging Energy Technologies

Wind Power Fuel Cells

Enbridge is a participant in four wind power projects with a combined capacity of 270 megawatts. The company participates directly in one project in Ontario, and through its investment in Enbridge Income Fund it participates in three projects in Western Canada.

Enbridge and Suncor Energy Inc. formed a partnership (50:50) called the SunBridge Wind Power Project to develop a wind farm in southwest Saskatchewan at a cost of approximately $20 million. The project was in full commercial operation as of June 2002, with Enbridge Pipelines as the operator of the facility. Effective October 1, 2006, Enbridge Income Fund purchased Enbridge's interest in SunBridge.

SunBridge is located just southeast of Gull Lake. SunBridge's 17 wind turbines generate more than 11 megawatts of electricity for distribution through the Saskatchewan power grid, and SaskPower purchases the electricity produced at the facility to provide power for federal government buildings in Saskatchewan and other customers. The initiative was stimulated by a 10-year $12.4 million federal government commitment in the fall of 2000 to support green power development in Saskatchewan.

In April 2004, Enbridge announced its second investment in wind power, a one-third interest in the Magrath project in southern Alberta. The Magrath project consists of 20 1.5-megawatt wind turbines. Enbridge is purchasing one-third of the power for its Enbridge Pipelines crude oil system, representing approximately 13% of Enbridge Pipelines' total power requirements in Alberta. Effective October 1, 2006, Enbridge Income Fund purchased Enbridge's interest in Magrath.

In August 2005, Enbridge announced another investment in wind power, a one-third interest in the Chin Chute Wind Power Project in southern Alberta. Chin Chute consists of 20 1.5-megawatt wind turbines. The project began commercial operations in the fall of 2006. Effective October 1, 2006, Enbridge Income Fund purchased Enbridge's interest in Chin Chute.

In November 2005, Enbridge announced that it will be developing 182 megawatts of wind power on the eastern shore of Lake Huron in Bruce County, Ontario.  Enbridge owns a 100% working interest in the Ontario Wind Power project, and has executed a 20-year electricity purchase agreement with the Ontario Power Authority for all of the power produced by the project. Total capital expenditures for the project will be approximately $500 million.

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Enbridge established a strategic alliance with Global Thermoelectric Inc. in July 2000 to develop and distribute natural-gas-fueled fuel cell products suitable for the supply of electric power and heating to individual residential homes. Fuel cells are an evolving new technology capable of transforming certain fuel sources directly into electric power and heat with high efficiency and reduced emission of greenhouse gases.

Under terms of the alliance, Enbridge invested $25 million in Global to fund further technology, design and product development work required to reach a commercial launch of the residential units. Enbridge has provided commercial input into the product design and development phase with respect to the residential market, and will have exclusive distribution rights for the resulting products for all of Canada.

In November 2003, FuelCell Energy, Inc., a leading manufacturer of stationary fuel cell power plants for distributed generation based in Danbury, Connecticut, acquired Global Thermoelectric. FuelCell Energy has developed commercial distribution alliances for its carbonate Direct FuelCell technology and is developing Direct FuelCell technology for stationary power plants with the U.S. Department of Energy through its Office of Fossil Energy's National Energy Technology Laboratory.

In July 2005, Enbridge and FuelCell Energy announced an agreement whereby Enbridge will be a distributor of the Direct FuelCell – Energy Recovery Generation^™ product and other FuelCell Energy products. As part of the agreement, Enbridge received warrants to purchase 1 million shares of FuelCell Energy common stock. The agreement calls for the warrants to be exercisable on a graduated scale based on order flow generated by Enbridge. The full quantity of warrants will vest with order commitments for 40 megawatts of DFC products.

The alliance enables Enbridge to participate in a second fuel cell technology - molten carbonate - which has excellent near-term commercial potential. In addition, the company expects continued development of the solid oxide fuel cell (SOFC) technology that has longer-term potential. Both technologies are consistent with Enbridge's strategy to invest in emerging and renewable energy technologies.

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