Noah Zivitz

Managing Editor, BNN Bloomberg

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Enbridge Inc. announced Thursday it’s buying Tri Global Energy (TGE) to bolster its renewable-energy operations.

The Calgary-based company said in a release that the acquisition of TGE, described as the third-largest onshore wind developer in the United States, is worth US$270 million, including assumed debt. The terms also include up to US$50 million in potential contingent payments.

According to TGE’s website, it has more than 8.7 GW of projects that are either operating, under construction, or financed across Texas, Nebraska, Illinois, Indiana, Virginia, Pennsylvania, and Wyoming. The release from Enbridge states TGE will have 3 GW of projects entering service between 2024 and 2028.

"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,” said Enbridge president and Chief Executive Officer Al Monaco in the release.

Renewables currently account for only a small fraction of Enbridge’s overall business. In the second quarter of this year, the company said its earnings before interest, taxes, depreciation, and amortization (EBITDA) from renewable-power generation rose six per cent year-over-year to $122 million. Its overall EBITDA in the period was $2.6 billion.

In a presentation last month, Enbridge estimated that renewable power will account for four per cent of total EBITDA this year, while its pipeline operations will contribute 58 per cent of that adjusted profit.