Our Environmental Performance

SUSTAINABLE ENERGY COMMITMENTS

Enbridge's strategy of pursuing alternative and renewable energy technologies expands our product line, and further positions our company to become a significant player in new areas of the energy industry. It is also consistent with our commitment to sound environmental stewardship.

WIND POWER

Wind-generated electricity is the fastest growing sector of electricity generation in North America, with growth rates of more than 20% expected over the next decade. Substantial technological advances and government incentives have enabled wind power projects to become economically attractive investments.

Over the long term, we are committed to accelerating Enbridge's wind power investments to further our company's CSR strategy and capitalize on opportunities for economically attractive growth in the wind power sector. In pursuing emerging wind power opportunities in Canada and the United States, our strategy is to:

• focus on project opportunities near existing Enbridge infrastructure
• partner with industry peers to broaden our risk exposure
• arrange power purchase agreements within our company to backstop our investments
• pursue long-term power purchase agreements with third party entities

Investing in the Magrath wind power project

In April 2004, our company joined Suncor Energy and EHN Wind Power Canada as an equal partner in the Magrath wind power project, located southwest of Lethbridge, Alberta. With an installed capacity of 30 MW, enough to meet the annual demands of about 13,000 homes, the 20 turbines use advanced wind power technology to combine high electrical output, low noise levels and a small footprint on the land.

The project cost $48 million, of which Enbridge's share was $16 million. We have also contracted under a 20-year agreement to purchase one-third of the project's output to supply power to our Alberta pipeline system. A long-term contract of this type reduces risk for the wind project and provides our pipelines with a source of electricity at a stable price.

Together with Suncor Energy, we also own and operate the 11.2 MW SunBridge wind power project near Gull Lake, Saskatchewan.

As of April 2005, Enbridge's investments, along with those of our joint venture partners, represented about 7% of Canada's installed wind power capacity.

Preparing for growth opportunities

We are exploring other wind power opportunities in Canada and the United States.

In 2004, we purchased wind data, wind monitoring equipment and 8,000 hectares (20,000 acres) of wind resource properties in south-central Manitoba from Shell Canada. We also signed a memorandum of understanding with a Manitoba-based developer to jointly develop wind power resources in the province. These achievements position Enbridge for what we expect to be substantial wind growth opportunities in that province.

Building on our successful experience at Magrath, we are investigating similar wind power opportunities along our Liquids Pipelines system in the upper U.S. Midwest, where we hope to invest in nearby wind energy facilities.

Contributing to wildlife studies

We contribute to scientific studies that increase industry understanding of the impacts of wind power projects on the environment. In 2004, we collaborated with wind power developers and Natural Resources Canada to study the impact of wind power structures on bird and bat migration patterns. Using an automated radar acoustic system, we collected information about the presence and numbers of bat and bird species, and their flight paths, at existing and prospective wind power sites in Alberta. Results of the study were largely favourable, showing a noticeable avoidance of wind power site structures by bird and bat species.

FUEL CELLS

As a complement to our existing and planned renewable energy investments, we are focusing on emerging energy technologies that use natural gas. One of the most important near-term opportunities is the large stationary high temperature fuel cell, which offers numerous benefits:

• It is a proven technology with installations around the world.
• It provides best-in-class efficiencies, generating more electricity per unit of fuel consumed, compared with conventional sources.
• It delivers clean, quiet generation with fewer GHG emissions and near-zero smog emissions.
• With Canada's extensive natural gas infrastructure, large stationary fuel cells can be installed, where they are needed most, to reinforce electricity networks.

Exploring stationary fuel cell technologies

Last year, we continued to explore opportunities for large stationary fuel cell technologies through our partnership with U.S.-based FuelCell Energy. In partnership with FuelCell Energy, we have invested $25 million in two fuel cell designs aimed at electric power generation. One is for large commercial applications, and one is for smaller residential units that would supply electricity and heat to homes and apartment buildings. Enbridge is now a Canadian distributor of industrial-sized molten carbonate fuel cells made by FuelCell Energy.

Besides our involvement as an investor, we also see an important role for Enbridge in building awareness and government support for new fuel cell products in ways that contribute to energy conservation and drive more efficient technologies. In Enbridge Gas Distribution, we are building support for the advancement of a fuel cell demonstration project as part of utility infrastructure in Ontario. We are also an active member of Fuel Cells Canada, a non-profit industry association that promotes the environmental benefits of fuel cells and hydrogen technologies throughout Canada.

DISTRIBUTED ENERGY

Distributed energy sources are small-scale power generation technologies - generators fuelled by natural gas or diesel, or alternative and renewable technologies such as wind, fuel cells and solar photovoltaic cells - located close to customers' homes or businesses. They are an important emerging energy option that can provide customers with reliable, local energy supplies while lowering overall emissions of air pollutants.

Supporting energy diversification in Ontario

In Ontario, gas-fired generation is expected to become more important as older coal-fired generation facilities are replaced with alternative energy technologies. In early 2004, the provincial government issued requests for proposals to add 2,500 MW of clean energy supply to meet consumer demand. Most of this new capacity is expected to be supplied by natural gas plants. Enbridge Gas Distribution is working closely with project proponents to supply information and identify suitable sites along our natural gas mains for gas-fired generation units.

Testing bi-fuel technology

We are also working with other organizations to remove barriers to the use of existing smaller distributed generation technologies. Currently, many emergency generators in Ontario operate only on diesel fuel. In 2004 and early 2005, Enbridge Gas Distribution, in cooperation with Ontario Power Generation (OPG), participated in field tests for bi-fuel technology, which allows industrial diesel generators to run on a combination of diesel and natural gas, thereby allowing for longer run times. Work is continuing to further evaluate associated emission reductions and operational flexibility.

^ top of page

At Enbridge, there are no dividing lines between good business practices and being a responsible company — one that is ethical, is a steward of the environment, is safe, engages its stakeholders and is attentive to social needs.

more...