Enbridge eyeing offshore wind industry, buys $750M stake in U.K. project
Energy company acquires 24.9 per cent stake in 400 megawatt wind farm
CALGARY—In what could be a springboard for further activity in the offshore wind industry, Enbridge has acquired a 24.9 percent stake in the Rampion Offshore Wind Project in the U.K.
The company expects its investment in the 400 megawatt project to be $750 million. The figure includes all interest during construction, transaction costs and a development fee. The project, which is located 13 kilometres off the Sussex coast at its nearest point was developed and is being constructed by E.ON Climate & Renewables UK Ltd.
“Offshore wind is a natural next step for Enbridge’s significant wind business,” Enbridge president and CEO, Al Monaco, said. “We have a well-established renewables business and growing expertise in wind power technology, construction and operations and this project provides an attractive opportunity to partner with E.ON, an industry leading constructor and operator of offshore wind projects, and Green Investment Bank with its experience of supporting offshore wind ventures.
“Further developing our expertise in this business will position Enbridge to participate in future offshore developments,” he added.
Rampion is backed by the U.K.’s fixed price Renewable Obligation Certificates program as well as a 15-year power purchase agreement. The project will utilize 116 Vestas V112-3.45 MW turbines and is expected to reach full commercial operation in 2018.
“Our investment in Rampion Offshore Wind is a strong fit with our investor value proposition and advances a number of key corporate priorities,” Monaco said. “Rampion provides a timely and effective entry point to the European offshore wind business and it supports our objective of developing new platforms that extend and diversify our industry leading growth beyond 2019.”
The Calgary-based company noted forecasters expect Europe’s offshore wind industry to receive 100 billion euro in investment over the next 10 years.