Enbridge (TSX: ENB, Stock Forum) continued to grow its footprint in renewable energy when the company announced today that it will purchase an 80% interest in a portfolio of two wind farms, located in Texas and Indiana, from E.ON.
According to the news release, the portfolio, valued at $650.0 million, consists of the 203 megawatt (MW) Magic Valley 1 wind farm near Harligen, Texas, and the 202 MW Wildcat 1 wind farm near Elwood, Indiana.
Both farms commenced operation in 2012 and reside within areas of favorable wind regimes and as a combination, provide enough clean energy for 120,000 households. E.ON will retain the remaining 20% interest in the portfolio and will continue operation of the wind farms.
Company Senior Vice-President of Corporate Development, Vern Yu, commented on the interest acquisition, “This strategic investment provides a significant contribution to our growth targets in power generation.”
He then explained, “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.”
And summed up, “E.ON is a global leader in renewables and we welcome the partnership with a company that is a safe, reliable and proven asset operator.”
E.ON Climate & Renewables CEO, Eckhard Rummler, added, “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. We are happy to have found a reliable partner in Enbridge, who shares our approach of combining high class assets and safe operations.”
The transaction, part of Enbridge's five-year $3.0 billion push into renewable energy assets, is still subject to regulatory approval.
Enbridge was in the news recently when the Calgary-based company announced in the middle of November that it would would webcast its 2015 guidance on a conference call.
Shares edged up 0.08% on the news to $52.84 per share.
Currently there are 848.8m outstanding shares with a market cap of $44.8 billion.