Canadian developer Enbridge has reached an agreement to sell 49% of its 50% interest in the 480MW Saint-Nazaire offshore wind project in France.
The transaction forms part of an agreement with Canada Pension Plan Investment Board (CPP Investments) whereby Enbridge will sell 49% of its 50% interest in French offshore wind developer (Eolien Maritime France).
EMF also holds stakes the Fecamp and Courselles French offshore wind projects.
The deal is expected to net Enbridge more than C$100m (€65m).
CPP Investments will acquire the stake in return for a payment which will include 49% of all development capital spent by Enbridge since inception to the date of close, expected in the fourth quarter of this year.
Post closing CPP Investments will contribute its pro-rata 49% share of all ongoing future development capital.
After the transaction closes, Enbridge will own, through its investment in Eolien Maritime France, 25.5% in Saint Nazaire, 17.9% in Fecamp and 21.7% in Courseulles.
Enbridge said it expects the sale will improve its equity returns from the project.
The company announced the transaction in its first quarter results, where the renewables unit reported C$120m in earnings before interest and tax (EBIT) compared with C$124m in the same quarter of last year.
Saint-Nazaire reached a positive final investment decision in 2019, while Fecamp and Courseulles are expected to reach a final investment decision by next year.
Enbridge said it is experiencing a “natural slowing” of 2020 secured growth capital spending in light of the Covid-19 pandemic and the health and safety measures put place by federal and regional governments.
After a review of capital execution schedules the developer expects 2020 expenditures will be approximately C$1bn lower than budgeted and the deferred capital will be shifted into 2021.