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Enbridge to buy 80% stake in two US wind farms from E.ON

CTBR Staff Writer Published 01 December 2014

Canadian energy firm Enbridge has agreed to acquire an 80% stake in two US wind farms from German power and gas company E.ON.

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The transaction, which has an enterprise value of about $650m, is subject to regulatory approvals.

The deal includes the 203MW Magic Valley 1 wind farm situated near Harligen, Texas and the 202MW Wildcat 1 facility near Elwood.

Combined, the two wind farms generate enough energy for over 120,000 households.

E.ON will operate and retain a 20% stake in both the wind farms, which started services in 2012.

Commenting on the transaction, Enbridge senior vice-president of corporate development Vern Yu said: "This strategic investment provides a significant contribution to our growth targets in power generation.

"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. 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."

Enbridge has invested about $3bn in renewable energy assets over the last five years.

The latest acquisition will bring Enbridge's total net generating capacity of green power projects to over 1,600MW and supports the company's plans to double its existing capacity by 2018.

The projects will help Enbridge meet its Neutral Footprint commitment by 2015 through the production of a kilowatt hour of renewable energy for every additional kilowatt of electricity consumed by its Liquids Pipelines business.

Enbridge presently has stakes in over 1,800MW of renewable and alternative energy generating capacity. The company is increasing its interests in wind and solar energy and geothermal.

Image: Enbridge has agreed to acquire an 80% stake in two US wind farms from E.ON. Photo: Courtesy of dan/FreeDigitalPhotos.net.