Enbridge Expands Green Generation - Analyst Blog

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Enbridge Inc. ( ENB ) and EDF EN Canada Inc., a subsidiary of EDF Energies Nouvelles (ENB.TO), entered into a partnership to acquire the 300 megawatt (MW) Blackspring Ridge Wind Project, situated in Vulcan County, Alberta from Greengate Power Corporation. The clean energy generated from the project will be sold to Pacific Gas and Electric Company, a unit of PG&E Corporation ( PCG ), under a 20-year purchase agreement.

Per the agreement, EDF EN Canada and Enbridge will each own 50% of the project and the total investment in this wind project will be nearly $600 million. The project will be able to generate enough electricity to power 140,000 homes.

This project is in the late stages of development and EDF EN Canada will be entrusted with the duty to build the project under a fixed price engineering, procurement and construction contract.  This project will generate electricity from its 166 Vestas V100-1.8 MW wind turbines. The construction work is expected to begin in the second quarter of 2013 and will be ready for commercial operation in mid-summer 2014.

The fresh investment in wind assets will enable Enbridge to retain its position as the second largest wind generator in Canada. We believe Alberta is an attractive destination for wind investment due to its high wind capacity factor and in-place infrastructure for transmitting electricity to consumers.

Besides Alberta, Enbridge has been expanding in other areas of Canada and adding to its existing wind assets. In 2012, Enbridge added to its wind generation capacity by acquiring a 50% interest in the 150-MW Massif du Sud development and another 50% interest in the development of the 300-MW Lac Alfred Wind Project. Both these assets were in Quebec.

Enbridge Inc. currently retains a Zacks Rank #4 (Sell). Currently we favor other operators like SemGroup Corporation ( SEMG ) and Oiltanking Partners L.P. ( OILT ). While SemGroup holds a Zacks Rank #1 (Strong Buy), Oiltanking Partners carries a Zacks Rank #2 (Buy).

Based in Calgary, Canada, Enbridge Inc. was founded in 1949. This pipeline operator is engaged in the distribution and transportation of crude oil and natural gas in the United States and Canada.



ENBRIDGE INC (ENB): Free Stock Analysis Report

OILTANKING PTNR (OILT): Free Stock Analysis Report

PG&E CORP (PCG): Free Stock Analysis Report

SEMGROUP CORP-A (SEMG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ENB , OILT , PCG , SEMG

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