Canadian pipeline company Enbridge has acquired Tri Global Energy (TGE), the US renewable project developer, to speed up its growth strategy in North America.
Enbridge has closed the acquisition for $270 million in cash and assumed debt. Additionally, up to approximately $50 million in payments could be made contingent on the successful execution of TGE’s project portfolio, the company said.
TGE is currently knowns as the third largest onshore wind developer in the US, with a development portfolio of wind and solar projects representing more than 7 GW of renewable generation capacity.
“TGE will enhance Enbridge’s renewable platform and accelerate our North American growth strategy” , commented Al Monaco , Enbridge’s president and CEO.
“TGE’s significant development pipeline, coupled with our renewable capabilities, and existing self-power opportunities, make this a truly synergistic investment that further positions us to grow organically at attractive equity returns. We’re excited to be welcoming the TGE team to Enbridge, further strengthening our capabilities as we ramp up our renewable business.”
According to Enbridge, TGE’s development portfolio is well-positioned to capitalize on renewable business growth in North America.
TGE’s projects include 3.9 GW of renewable generation projects previously sold to operators, which will generate development fees and accretion to distributable cash flow per share in the first year following the acquisition of TGE.
In addition, 3 GW of late-stage development of wholly-owned projects are expected to be placed into service between 2024 and 2028, providing a visible ramp-up in cash flows along with a large slate of further projects in earlier stage development beyond that period, Enbridge explained.
Earlier this year, Enbridge teamed up with Humble Midstream to jointly develop a low-carbon hydrogen and ammonia production and export facility near Corpus Christi, Texas.
The company is also investing in the construction and operation of the Woodfibre liquefied natural gas (LNG) project under a deal with Pacific Energy.
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