Enbridge’s renewable energy portfolio has now reached the shores of Europe.
Well, to be precise, 13 kilometers from the shores of Europe.
Today, Enbridge Inc. announced the acquisition of a 24.9-percent stake in the 400-megawatt (MW) Rampion wind project off the coast of England.
While we already have a $4-billion-plus portfolio of renewable projects generating 1,800 MW of zero-emission energy, this $750-million investment is especially significant for Enbridge. It’s our first venture into the offshore renewables market, and it’s our first move into power generation outside North America.
“We see European offshore wind as a natural and timely extension of our existing wind investments,” Enbridge president and CEO Al Monaco told analysts and reporters during a conference call.
The Rampion Offshore Wind Project is located 13 kilometers due south of Brighton in the English Channel. The project was announced in May by E.ON Climate & Renewables UK, a subsidiary of E.ON. Consisting of 116 Vestas turbines cranking out 3.45 MW of power apiece, the Rampion Offshore Wind Project is expected to be fully operational in 2018.
Enbridge and E.ON are already partners in two other wind projects—the 200-MW Wildcat Wind Farm near Elwood, Indiana, and the 200-MW Magic Valley I Wind Farm near Harligen, TX. In each case, the project is operated by E.ON and has an 80-per-cent Enbridge ownership.
Enbridge’s green energy portfolio also includes 12 other wind farms, based in Colorado, Texas, Quebec, Ontario, and Alberta. E.ON, meanwhile, is a world leader in wind energy, with an installed capacity of about 4,000 MW. The Rampion Offshore Wind Project represents E.ON’s 10th offshore wind project, and its sixth in the United Kingdom.
“The European offshore wind business comes with strong market fundamentals, sound commercial underpinnings and attractive returns,” said Mr. Monaco. “E.ON has a proven project execution track record . . . and we’re an industry leader in offshore pipeline construction.”
As part of Enbridge’s company-wide strategic plan, one of our priorities is extending and diversifying growth beyond 2019.
“We’d all agree that if you look to the future, we’re going to see a lower-carbon-intense environment for our economy,” Mr. Monaco told reporters on Thursday. “In (Enbridge’s) case, we’ve got a very substantial portion of our earnings and cash flow driven by oil and gas transportation, and I think the reality is, that is going to be with us for many decades to come. That’s important.
“But at the same time, we’re building slowly toward other sources of energy supply, as well. I think we’re a good representation of how the broader market is moving.”