Agreement to develop a 99 megawatt (MW) wind energy project near Chatham, Ontario in which Enbridge will have a majority interest
Enbridge Inc (TSX, NYSE: ENB) and Renewable Energy Systems Canada Inc. (RES Canada) an affiliate of RES Americas, announced today that they have entered into an agreement to develop a 99 megawatt (MW) wind energy project near Chatham, Ontario in which Enbridge will have a majority interest. The total investment in the project by both parties is approximately $285 million. The Project will be structured as a limited partnership owned by Enbridge and RES Canada.
Construction of the project will be undertaken by RES Canada under contract to the partnership.
“The positive steps the Ontario government is taking to encourage and support a thriving renewable energy industry, combined with our existing presence through the 190 MW Enbridge Ontario Wind Project, make the Talbot Wind Energy Project an excellent fit with Enbridge’s strategy to expand its renewable energy platform across Canada and the U.S.,” said Patrick D. Daniel, President and Chief Executive Officer, Enbridge Inc. “Investing in renewable energy diversifies our business and further strengthens our financial position with stable cash flow, attractive returns and reduced business risk.
“The Talbot Wind Energy Project will advance Enbridge’s commitment to an environmentally neutral footprint by 2015 while generating attractive economics. Talbot Wind Energy is expected to avoid the emission of approximately 106,600 tonnes of carbon dioxide each year, and represents a significant step forward in our objective of generating a kilowatt of renewable energy for every kilowatt consumed by our operations,” said Mr. Daniel.
The Talbot Wind Energy Project is expected to be completed in December 2010 and will produce enough clean wind energy to power 33,000 average Canadian homes. It utilizes 43 Siemens 2.3 MW wind turbines and, under the terms of the agreement, will be constructed by RES Canada under a fixed price, turnkey, engineering, procurement and construction agreement. Siemens will provide operations and maintenance services for the wind turbines under a five year, fixed price agreement. The Talbot Wind Energy Project will deliver energy to the Ontario Power Authority under a Renewable Energy Supply (RES) III 20-year power purchase agreement.
The Talbot Wind Energy project will complement Enbridge’s growing portfolio of green energy assets including four existing wind power projects and one solar project, bringing Enbridge’s combined capacity to 380 megawatts. Enbridge’s share of the power generated by its wind facilities in Ontario, Alberta and Saskatchewan provides enough green energy to meet the equivalent of 35 per cent of the power requirements of the Company’s Canadian crude oil mainline. Enbridge also has interests in emissions-free hybrid fuel cell technology and waste heat recovery facilities.
RES Americas is a world leading, vertically integrated wind energy player in development, engineering, procurement and construction (EPC), and operating services. RES Americas has over 4,000 MW in construction projects, representing approximately 14 per cent of the U.S. wind energy capacity to date. RES Canada has been active since 2003, and brings RES’ 25 years of wind experience to the Canadian wind industry.
“RES Canada is excited to be working with Enbridge, the Ontario Power Authority and local contractors to help meet Ontario’s green energy goals,” said Craig Mataczynski, President of RES Canada. “The Talbot project reflects the Company’s commitment to bringing well engineered, quality projects and competitively priced renewable energy to the Province.”
The Talbot Wind Energy Project marks RES Canada’s arrival in the Canadian renewables market with the first fully integrated wind project which was developed and will be constructed by RES Canada.
The partners expect the project will create an estimated 300 construction jobs and eight direct operation jobs. The Talbot Wind Energy Project will generate revenue for businesses in the region, spending up to $50 million in capital expenditure and more than $7 million a year in operating expenditures. The Municipality will also benefit, receiving approximately $280,000 in tax payments each year.