North Coast Solar Stocks

October 2, 2009

Enbridge to buy a 20 MW solar energy project

Filed under: FSLR — Tags: , , , , — Jason @ 1:29 pm

Fri Oct 2, 2009 1:29pm EDT

* Project is being built near Sarnia, Ontario

* May participate in more renewable energy projects

* First Solar shares rise, Enbridge lower

TORONTO, Oct 2 (Reuters) – Enbridge Inc (ENB), Canada’s largest oil pipeline company, said on Friday it is buying a 20 megawatt solar project that First Solar Inc (FSLR) is building near Sarnia, Ontario, boosting Enbridge’s suite of renewable energy assets.

The Sarnia solar project, expected to be completed by the end of this year, will be the largest photovoltaic facility in operation in Canada, the companies said in a statement.

Enbridge did not disclose the value of the deal, but said it has spent C$100 million ($92 million) on solar energy this year. It said it may spend more on the technology in Ontario.

The 20 MW operation could power about 3,200 homes, Enbridge said.

The risks and potential returns of the investment are similar to other projects at the company, Chief Executive Pat Daniel said.

Enbridge is best known as operator of the main arteries for Canadian crude oil exports to the United States, a system that moves about 2 million barrels a day.

Environmentalists have criticized its $3.3 billion Alberta Clipper pipeline project because it is aimed to moving more crude from Canada’s oil sands, fueling development of an energy source critics say hinders efforts to curb global warming.

Meanwhile, the company also has four wind farms, which have a combined capacity of 260 MW. Enbridge’s share of the power generated from those sites is equivalent to 35 percent of the needs of its oil mainline, it said.

Enbridge said it may participate with First Solar in future solar energy projects at Sarnia, a major petrochemical hub.

Enbridge shares were down 5 Canadian cents at C$40.86 on the Toronto Stock Exchange. Shares of Arizona-based First Solar were up $6.85, or nearly 5 percent, at $150.61 on Nasdaq.

($1=$1.08 Canadian)

(Reporting by Euan Rocha and Jeffrey Jones; editing by Rob Wilson)

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