CPPIB Takes a Piece of Hohe See and Albatros Offshore Wind Farms

May 9, 2018

Canada Pension Plan Investment Board (CPPIB) has signed agreements with compatriot Enbridge Inc. to acquire 49% of Enbridge’s interests in two German offshore wind projects – Hohe See and Albatros.

Currently, Enbridge controls 49.9% stakes in the two wind farms, with Germany’s EnBW controlling the remaining 51.1% stakes.

Enbridge and its affiliates will continue to manage, operate and provide administrative services to the 497MW Hohe See and the 112MW Albatros, currently under construction in the German North Sea.

Concurrently, CPPIB and Enbridge have entered into an agreement whereby the two parties will form a 50-50 joint venture to pursue future European offshore wind projects. These projects may be in the early development, late development, construction or operational phase.

”Through the joint venture, we will have the opportunity to grow our renewables portfolio across the European offshore wind market. As power demand grows worldwide, we will continue to seek opportunities to expand our power and renewables portfolio globally, helping to ensure the CPP Fund is well-positioned for the expected energy transition,” said Bruce Hogg, Managing Director, Head of Power and Renewables, CPPIB.

The deal, which includes the acquisition of Enbridge’s stakes in select onshore wind farms in North America, is valued at CAD 1.75 billion (EUR 1.14 billion).

Under the terms of the agreements, CPPIB will fund its 49% pro-rata share of the remaining construction capital required to complete the Hohe See and Albatros projects which are scheduled to come into service at the start of 2020. CPPIB’s additional capital commitment is estimated at approximately CAD 500 million, bringing CPPIB’s total commitment to approximately CAD 2.25 billion.

Each of the North American and German acquisition agreements is subject to customary closing adjustments and conditions. Closing is expected to occur during the third quarter of 2018, subject to the receipt of all necessary regulatory approvals and consents.