Enbridge agrees to acquire 50% stake in Eolien Maritime France

Enbridge has agreed to purchase a 50% interest in Éolien Maritime France (EMF), a French offshore wind development company, for CAD$282m ($218m).

Enbridge will co-own EMF with Électricité de France’s subsidiary EDF Energies Nouvelles (EDF EN).

The deal is expected to be completed on or about 19 May.

This transaction includes acquisition and past and future pre-final investment decision (FID) development costs.

EDF EN and Enbridge will co-develop three large-scale offshore wind farms off the coast of France, which can produce a maximum power output of 1428MW.

The projects have a 20-year power purchase agreement (PPA).

The projects are in an advanced-stage of development, nearing development.

Enbridge president and CEO Al Monaco said: "This investment in EMF advances our priority to build new business platforms that will extend and diversify growth.

"The EMF development opportunities are underpinned by strong market fundamentals and a commercial framework that is very well aligned with our low-risk business model.

"Once fully operational, they are expected to generate attractive returns and accretion to available cash flow from operations."

Enbridge will invest up to CAD4.5bn in all three projects, and is subject to taking positive FID on every project individually.

With achievement of FID, construction on the projects is slated to begin from 2017 and will continue till 2022.