Canadian firm Enbridge, Inc., has agreed to buy a 139-turbine wind farm to be built in Broomfield, Colorado.
The 250-megawatt Cedar Point Wind Energy Project is being developed by Renewable Energy Systems Americas, Inc., which will build the project on a fixed-price contract with Enbridge.
The $500 million deal will see the new wind farm owned and operated by a US affiliate of Enbridge, which has its HQ in Calgary, Alberta.
Located 80 miles east of Denver, construction will begin shortly, with most of the Vestas 1.8MW turbines expected to be completed in late 2011.
The wind farm will generate enough power to supply around 80,000 local homes, with electricity to be sold under a 20-year power purchase agreement with the Public Service Company of Colorado.
Al Monaco, Executive Vice President of Major Projects and Green Energy at Enbridge Inc., said his company’s investment in Cedar Point “establishes a beach head” for future investment in US clean energy projects.
He said: “Our green energy investments provide attractive returns and establish a new source of earnings growth that complements existing growth in our liquids and natural gas transportation businesses.”
Enbridge decided in 2009 to invest in generating as much clean energy as the energy the company itself consumes.
The Cedar Point wind farm is the eighth renewable energy project the Canadian firm has invest in, along with solar, hybrid fuel cell and waste heat recovery projects. It is the third project working with RES Americas.
The wind farm is subject to a five-year maintenance and warranty agreement with the turbine supplier, Danish firm Vestas.
Once complete, the Cedar Point project will bring RES Americas’ portfolio of projects to more than 4,800MW capacity.
Richard Ashby, CFO of RES Americas, said: “Working with Enbridge and PSCo, RES Americas is excited to contribute to the state’s goals of providing economic benefits to the community and helping ensure a secure energy future.”
Enbridge and RES Americas expect the project will create up to 250 construction jobs and, through its ongoing operations, generate revenue for businesses in the region.