CALGARY, ALBERTA--(Marketwired - Feb. 17, 2017) - Enbridge Inc. (TSX:ENB)(NYSE:ENB) (Enbridge or the Company)
today announced it has acquired an effective 50 percent ownership in the 497-megawatt (MW) Hohe See offshore wind project from
EnBW, a German utility, who will retain the remaining interest. Hohe See is a late design-stage project located in the North Sea,
98 kilometers off the coast of Germany. As co-developer, Enbridge will participate in the construction and operation of the
project. Once in service in late 2019, Enbridge's total investment in the project will be $1.7 billion (EUR1.07 billion). The
project is expected to be strongly accretive in the first full year of operations.
"Offshore wind presents promising large-scale opportunities to increase Enbridge's presence in the renewable power business
and is one of our key platforms in the growth of our enterprise going forward," Enbridge President and CEO Al Monaco said of the
transaction. "We like this business, and this project in particular, as it is supported by strong commercial underpinnings and
provides attractive returns that are consistent with our investor value proposition.
"This partnership also provides an option for further future investment in a planned 112-MW expansion of the offshore wind
farm, providing Enbridge with an additional organic growth opportunity within the European offshore wind market," added Mr.
Monaco. "EnBW is an excellent partner and leader in German power generation and offshore wind development and we look forward to
working together to execute on this project and potential future opportunities.
"This project represents an attractive opportunity for Enbridge to extend growth beyond 2019 and highlights the strength of
the $48 billion in probability weighted development projects that we introduced in conjunction with our Spectra acquisition
announcement. These projects, among others, will support the extension of our 10-12 percent annual dividend per share growth rate
through 2024," concluded Mr. Monaco.
Under the German government's offshore wind incentive structure, power generated by this project will effectively receive
long-term fixed pricing for a period of 20 years. Development and construction has been de-risked as the project has now achieved
all key regulatory approvals and fixed-price engineering, procurement, construction and installation contracts have been secured
with key suppliers representing more than 90 percent of the project capital costs.
Enbridge's investment in 2017 will be $0.6 billion (EUR0.44 billion) with the remaining capital to be invested through to the
in-service date in 2019. Equity financing needs for the full $1.7-billion investment have been pre-funded through financing
actions completed in the fourth quarter of 2016, specifically through the preferred share and hybrid instrument
offerings.
EnBW is one of the largest energy supply companies in Germany and Europe, with significant experience in construction and
operation of offshore wind assets. The company developed the first commercial offshore wind farm in Germany, which has been in
operation since 2011.
"We are pleased to join forces with Enbridge in delivering this project," said EnBW CEO Frank Mastiaux. "EnBW has established
a strong position in offshore wind and together with Enbridge, we will combine our expertise and advance our joint interest in
this growing sector."
Enbridge has several projects under development in the European offshore wind market, including a 24.9 percent stake in the
400-MW Rampion wind project off the coast of England (expected to be fully operational in 2018), and a 50 percent interest in
French offshore wind development company Éolien Maritime France SAS, which is pursuing three large-scale offshore wind that would
produce a combined 1,428 megawatts (MW) of power and are subject to final investment decision.
Enbridge's financial advisor for this transaction was J.P. Morgan Securities LLC and its legal advisor was Dentons.
About Enbridge Inc.
Enbridge, a Canadian Company, exists to fuel people's quality of life, and has done so for more than 65 years. A North
American leader in delivering energy, Enbridge has been ranked on the Global 100 Most Sustainable Corporations index for the past
eight years. Enbridge operates the world's longest crude oil and liquids transportation system across Canada and the United
States and has a significant and growing involvement in natural gas gathering, transmission and midstream business, as well as an
increasing involvement in power transmission. Enbridge owns and operates Canada's largest natural gas distribution company,
serving residential, commercial and industrial customers in Ontario, Quebec, New Brunswick and New York State. Enbridge has
interests in approximately 2,500 MW of net renewable and alternative generating capacity, and continues to expand into wind,
solar and geothermal power. Enbridge employs approximately 9,200 people, primarily in Canada and the United States and has been
ranked 15 times on the annual Canada's Top 100 Employers list, including the 2017 index. Enbridge's common shares trade on the
Toronto and New York stock exchanges under the symbol ENB. For more information, visit www.enbridge.com.
Forward Looking Information
Certain information provided in this news release constitutes forward-looking statements. The words "anticipate",
"expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements.
Forward-looking statements contained in this press release include, but are not limited to, statements with respect to regulatory
approvals, targeted in-service dates; funding of the investment in the Hohe See offshore wind project; growth of Enbridge; and
extension of annual dividend per share growth Although the Company believes these forward-looking statements are based on
information which is current, reasonable and complete, these statements involve a variety of assumptions, known and unknown risks
and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from
those expressed or implied by such statements. Material assumptions include the following: the receipt of regulatory approvals;
the realization of anticipated benefits of the investment in the Hohe See offshore wind project; the expected supply of and
demand for renewable energy; commodity prices; timing of closing and impact of the combination with Spectra Energy Corp;
satisfactory completion of projects under development and exchange rates, inflation and interest rates. The Company's
forward-looking statements are subject to risks and uncertainties pertaining to project development; regulatory approvals;
construction and completion; targeted in-service dates; operating performance; regulatory parameters; weather; commodity prices;
supply of and demand for renewable energy, economic and competitive conditions; and exchange rates, inflation and interest rates.
The Company cautions that the foregoing list of factors is not exhaustive. Additional information about these and other
assumptions, risks and uncertainties can be found in applicable filings of the Company with Canadian and U.S. securities
regulators. Except to the extent required by applicable law, the Company assumes no obligation to publicly update or revise any
forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or
otherwise.