CPP Investments Commits €200 Mn to Offshore Wind Projects in France

CPP Investments acquires 49% of the entity that holds Enbridge’s stake in its partnership with EDF Renewables that is developing 3 offshore wind farms in France.

Canada Pension Plan Investment Board (CPP Investments) has announced that its wholly-owned subsidiary, CPP Investment Board Europe, has reached an agreement with Enbridge to acquire 49 percent of the entity that holds Enbridge’s stake in Éolien Maritime France SAS, Enbridge’s partnership with EDF Renewables. The partnership is developing three offshore wind farms in France.

CPP Investments will pay approximately EUR 80 million for its stake, with an additional EUR 120 million committed to follow-on investment as the first project progresses through construction. CPP Investments could make additional investments of more than EUR 150 million in the two additional offshore wind farms.

The offshore wind projects are located in Loire-Atlantique (Saint-Nazaire), Seine-Maritime (Fécamp) and Calvados (Courseulles-sur-Mer), with a planned total installed capacity of almost 1.5 gigawatts. The Saint-Nazaire project is currently under construction, while Fécamp and Courseulles-sur-Mer are well advanced in terms of development. The wind farms are expected to become operational in phases between 2022 and 2024.

Bruce Hogg, Managing Director, Head of Power & Renewables, CPP Investments, said “France has established renewables as a cornerstone of its long-term energy plan and this partnership with Enbridge represents significant opportunities to invest in, and develop, flagship offshore wind projects across France, alongside France’s premier energy company, EDF Renewables. This investment will provide additional diversification to our existing portfolio of assets and deepen our access to future high-quality offshore wind development projects in Europe and Asia.”

The Power & Renewables investment team within CPP Investments’ Real Assets department focuses on the development and operational opportunities in low- and zero-carbon energy projects globally, including wind, solar and hydro.

In May 2018, CPP Investments signed agreements with Enbridge to acquire 49 percent of its interests in select North American onshore renewable power assets, as well as 49 percent of Enbridge’s interests in two German offshore wind projects. CPP Investments and Enbridge subsequently established Maple Power, a 50/50 joint venture to develop, construct and own offshore wind farms, with initial investments in Germany and France. Recent investments include Pattern Energy (Canada, Japan and the U.S.), and VTRM Energia (Brazil).