Enbridge is teaming up with a consortium of First Nations to develop a wind power project in Canada's Saskatchewan province in the first Indigenous partnership in renewables for the Canadian pipeline giant.
Enbridge and Six Nations Energy Development LP (Six Nations) - a newly-created consortium of Cowessess First Nation, George Gordon First Nation, Kahkewistahaw First Nation, Métis Nation-Saskatchewan, Pasqua First Nation, and White Bear First Nations - plan to advance the 200-megawatt Seven Stars Energy Project. The wind power project is expected to produce enough emissions-free electricity to support the annual energy needs of more than 100,000 Saskatchewan homes, Enbridge said on Monday.
The financial participation of the partners will be partially supported by loan guarantees of up to US$73 million (C$100 million) from the Saskatchewan Indigenous Investment Finance Corporation (SIIFC). The First Nation and Métis partners have an opportunity to buy at least 30% of the wind power project.
The partners target the project to be operational in 2027, subject to finalizing commercial agreements, securing the necessary environmental and regulatory approvals, and meeting investment criteria.
Enbridge is working toward securing a long-term power purchase agreement with SaskPower to support final investment decisions, anticipated in 2025.
The pipeline firm says it has invested US$7 billion (about C$10 billion) in renewables since its initial investment in a wind farm in 2002. Enbridge's renewable energy projects - either operating or under construction - have the capacity to generate 5,261 megawatts (MW) gross of zero-emission energy, or 2,345 MW net to the company. The pipeline firm has invested so far in 23 wind farms, 14 solar energy operations, one geothermal project, and one power transmission project.
Early this year, a top Enbridge executive told Reuters that the company plans to boost its presence in offshore wind in Europe but will shy away from investments in the United States, where escalating costs and supply chain problems have been plaguing projects.
Enbridge, whose main business is oil and liquids transportation via pipeline, generates around 3% of its core earnings from its renewables business.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More