Enbridge buys 80% stake in 2 U.S. wind farms from Germany’s E.ON
E.ON will retain 20 per cent interest in 203-megawatt Magic Valley 1 wind farm, 202-megawatt Wildcat 1 wind farm
CALGARY—Enbridge Inc. said it’s buying an 80 per cent stake in two wind farms in the United States from Germany-based E.ON SE.
Calgary-based Enbridge said it is buying the stake in the 203-megawatt Magic Valley 1 wind farm near Harligen, Texas, and the 202-megawatt Wildcat 1 wind farm near Elwood, Ind.
E.ON will retain a 20 per cent stake.
The companies value the wind farms at US$650 million.
“This strategic investment provides a significant contribution to our growth targets in power generation,” Enbridge vice-president of corporate development Vern Yu said in a statement.
“The transaction extends our renewable platform in the U.S., complementing our existing wind farm presence in Texas and establishing Enbridge in the Indiana renewable market.
Enbridge said it has invested approximately $3 billion in renewable energy assets over the past five years.
The acquisition of these two wind farms will bring Enbridge’s total net generating capacity of green power to more than 1,600 megawatts.
“Thanks to our excellent project portfolio and our capabilities there is a vital demand in the market for assets built and operated by E.ON,” E.ON chief executive Eckhard Rummler said. “We are happy to have found a reliable partner in Enbridge, who shares our approach of combining high class assets and safe operations.”
E.ON currently operates more than 2,700 megawatts of renewable energy projects in the U.S.
The two wind farms that make up the deal with Enbridge provide enough power for more than 120,000 households.
The transaction is subject to regulatory approvals.