Enbridge’s interest in European offshore wind gathers velocity with close of acquisition
By Vern Yu
Executive Vice President and Chief Development Officer, Enbridge Inc.
The winds of change are breezing through Europe as investment in renewable energy sources surges and France looks to its first set of offshore wind projects.
Vern Yu, Executive Vice President and Chief Development Officer, Enbridge Inc.
Enbridge is officially a part of it, having closed May 19 on the 50 percent acquisition of French development company EMF, co-owned with EDF Energies Nouvelles S.A. (EDF EN), a subsidiary of Électricité de France S.A. (EDF) and largely French state-owned utility that provides electrical power for most of France.
Our work co-developing these three large-scale offshore wind projects now begins in earnest and teams are in place to move us toward final investment decisions. Assuming that occurs, construction would start gradually from 2017.
Our co-ownership of EMF means we’ll participate in all aspects of the development, construction and operation of these wind farms, which collectively would produce 1,428 megawatts of power — a potential to power as many as one million homes.
We see great potential in offshore wind. These are commercially attractive projects that come with a potential $4.5-billion investment by Enbridge that include secure, long-term revenue streams. This acquisition advances our strategic priority to extend and diversify our growth, while also meeting the growing demand for lower-carbon sources of energy.
We’ll build on our proven experience in on-shore wind and grow our expertise in development, construction and operation of offshore wind, where the scale is considerably bigger. One turbine is as tall as an office building while the length of a single blade is as long as a jumbo jet, for example. The amount of power produced by a single offshore turbine is also considerably more robust at three-to-four times the capacity of an on-shore turbine.
These offshore wind farms will be France’s first, although offshore wind is already well established in Europe and is a key driving force in the energy transition to lower-carbon sources of production. These three projects are key to France’s commitment to achieving its renewable generation targets.
And these projects are just the tip of iceberg. Offshore wind in Europe has become an increasingly competitive power source. Industry association WindEurope notes that offshore wind was described by the European Commission in 2008 as “the energy of the future.” We believe the future is now.
With plans to double our renewable capacity, Enbridge is at the forefront of a global transformation that will require development of multiple sources of energy. This investment to co-develop three offshore wind projects in France helps us get there — and builds on our first investment in European offshore wind, the English Channel-based Rampion project, announced in November 2015.
As energy fundamentals are changing, Enbridge will continue to invest in renewables as we are well positioned to help bridge the transition to a lower-carbon future.
