E.ON (XETRA:EOAN) To Sell Off 80% Share In 405MW US Wind Energy Project

Based in Germany, E.ON (XETRA:EOAN), the electrical energy utility company, has struck a deal with Canadian oil and gas company Enbridge (NYSE:ENB), to sell 80% of its share in a group of wind farms based in the US to the latter. This particular wind farm project is capable of producing over 405MW of clean electrical energy.

The agreement includes two wind farms in different states of the US.

The first wind farm is called Magic Valley One, and it’s located somewhere around the Harligen area in Texas. Magic Valley One is capable of producing over 203MW of renewable, clean electrical energy, using state-of-the-art Vestas 1.8MW turbines in its machinery.

The second wind farm is called Wildcat One, which is located in a remote location near Elwood in the state of Indiana. Wildcat One is almost equally as capable as Magic Valley One, with the ability to produce over 202MW of clean electricity using turbines from the company GE, equipped with the strength of 1.6MW.

According to an E.ON (XETRA:EOAN) representative, the wind farms, which have become part of the deal it has signed with Enbridge (NYSE:ENB), were both started in 2012 around the same time, and were fully operational right from the start. According to a report released by E.ON (XETRA:EOAN), total value of said wind farms is over $650 million, combined.

E.ON (XETRA:EOAN) is one of the largest electricity supplying companies in Germany, and also has the distinction of being owned by investors in majority stake. In context of the United States, E.ON (XETRA:EOAN) is currently operating wind farm projects of a great magnitude. In totality, the sum of the total clean and renewable energy being produced by such projects is a little over 2.7GW.

According to the agreement signed between E.ON (XETRA:EOAN) and Enbridge (NYSE:ENB), E.ON (XETRA:EOAN) will still retain its share in the sold wind farms to a little under 20%. The German company will still remain the sole operator of the wind farms.E.ON (XETRA:EOAN), which has had a “buy and sell” policy throughout its business tenure, is satisfied with the deal, according to reports.

Enbridge (NYSE:ENB), the largest operator of Canada’s oil and gas pipelines, will be adding the newly bought wind farms to its portfolio of clean renewable energy projects. The addition of the two new wind farms will take the total energy capacity of Enbridge (NYSE:ENB) electricity projects to 2.2GW. Such an acquisition by Enbridge (NYSE:ENB) is in line with the Canadian company’s goals to double its capacity of, previously 1.8GW, by the end of 2017.

The deal with E.ON (XETRA:EOAN) is not the first for Enbridge (NYSE:ENB). According to reports, the company has invested over $3 billion in energy projects over the course of last 5 years. In a recent interview conducted before this deal, Enbridge (NYSE:ENB) had already intimidated its interest in clean energy farms in the US, and highlighted a particular interest in the state of Texas as its choice of a geographical location.

According to the SVP of Enbridge (NYSE:ENB), Vern Yu, these investments are necessary to provide “a significant contribution to [Enbridge (NYSE:ENB)’s] growth targets in power generation”.