Calgary based Enbridge Inc. acquired renewable project developer Tri Global Energy for $270 million in cash and assumed debt.
Another $50 million could be paid out contingent on successful execution of Tri Global’s project portfolio. That portfolio includes onshore wind and solar projects representing more than 7 GW of capacity.
Tri Global has wind, solar and energy storage projects in Texas, Nebraska, Illinois, Indiana, Pennsylvania and Virginia.
Enbridge is a player in oil and natural transportation and delivery. It moves about 30% of the crude oil produced in North America, as well as nearly 20% of the natural gas consumed in the U.S. It also operates North America’s third-largest natural gas utility by consumer count.
It said it expects North American renewable power fundamentals to remain robust. Rising targets for state renewable portfolio standards and growing private sector demand for zero-carbon electricity are set to drive investment in wind and solar power generation “significantly higher in the next decade.”
The deal is expected to generate immediate cash flow through the 3.9 GW of renewable generation projects Tri Global previously sold to operators, which will generate development fees and accretion.
In addition, 3 GW of late-stage development of wholly owned projects are expected to be placed into service between 2024 and 2028, providing an expected ramp up in cash flows along with a slate of further projects in earlier stage development.
Enbridge said that Dallas-based Tri Global’s development team will remain in place following closing.
Tri Global was founded in 2009 by John B. Billingsley. His business model was called The Wind Force Plan that led the company to lease around 670,000 acres in West Texas. The approach provided payments to landowners and investors upon project development, whether or not wind turbines were placed on their land. The land was developed into multiple wind farms, and more recently, solar farms.
In August, the American Clean Power Association released data showing that Tri Global ranked No. 10 in the U.S. for overall renewable energy development nationwide; No. 3 for onshore wind development; and No. 1 for onshore wind development in Texas.
