CALGARY, ALBERTA AND MONTREAL, QUEBEC--(Marketwire - Nov. 19, 2009) - Enbridge Inc (TSX:ENB) (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.
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Talbot Wind Energy Project at a glance:
Capacity peak: approx. 98,900 kilowatts
Turbines: 43 Siemens 2.3 MW wind turbines
Annual yield: around 300,000 MWh (corresponding to the annual consumption of
around 33,000 households)
CO2 saving: approx. 106,600 tonnes per year
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About Enbridge
Enbridge Inc., a Canadian company, is a North American leader in delivering energy. As a transporter of energy, Enbridge operates, in Canada and the U.S., the world's longest crude oil and liquids transportation system. The Company also has a growing involvement in the natural gas transmission and midstream businesses, and is expanding its interests in renewable and green energy technologies including wind and solar energy, hybrid fuel cells and carbon dioxide sequestration. As a distributor of energy, Enbridge owns and operates Canada's largest natural gas distribution company, and provides distribution services in Ontario, Quebec, New Brunswick and New York State. Enbridge employs approximately 6,000 people, primarily in Canada and the U.S. and was named one of Canada's Ten Best Places to Work in 2009. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit enbridge.com.
About RES Canada and RES Americas:
Renewable Energy Systems Canada Inc. (RES Canada) was founded in 2003 and is based in Montreal, Quebec. RES Canada is active with the development and construction services in most Canadian provinces. It is also a member of the 'Saint-Laurent Energies' consortium which won 954 MW in the Hydro-Quebec 2000MW tender in 2008. RES Canada is both a co-owner of these Quebec projects and in charge of construction.
Renewable Energy Systems Americas Inc. (RES Americas) is a fully-integrated renewable energy company that develops, constructs, owns, and operates projects across the United States (US), Canada, Mexico and the Caribbean. RES Americas has more than 4,000 MW of construction projects, which represent approximately 14% of the operating installed wind capacity in the US, and has over 12,500 MW in development. RES Americas' corporate office is located in Broomfield, CO with regional offices located in Austin, TX, Portland, OR, and Minneapolis, MN.
For more information, please visit www.res-americas.com.
For Enbridge Investors
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. Although Enbridge believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of risks and uncertainties pertaining to operating performance, regulatory parameters, weather, economic conditions and commodity prices. You can find a discussion of those risks and uncertainties in our Canadian securities filings and American SEC filings. While Enbridge makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Except as may be required by applicable securities laws, Enbridge assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
For more information please contact:
Enbridge Inc.
Jennifer Varey
Media
(403) 508-6563 or Toll Free: 1-888-992-0997
jennifer.varey@enbridge.com
or
Enbridge Inc.
Vern Yu
Investment Community
(403) 231-3946
vern.yu@enbridge.com
www.enbridge.com
or
RES Canada Inc.
Raheleh Folkerts
(303) 439-4200
raheleh.folkerts@res-americas.com
or
RES Canada Inc.
Scott Dunaway
(512) 716-8240
scott@dunawaypr.com
www.res-americas.com