(Reuters) – Enbridge (NYSE:) Inc has acquired U.S.-based renewable energy developer Tri Global Energy (TGE) for $270 million and assumed its debt, the Canadian pipeline operator said on Thursday.
The all-cash deal strengthens Enbridge’s North American renewables portfolio, it said, adding that TGE is the third-largest onshore wind developer in the United States.
“Rising targets for State renewable portfolio standards and growing private sector demand for zero carbon electricity are set to drive investment in wind and solar power generation significantly higher in the next decade,” Enbridge said.
The Calgary-based firm also said it could make up to about $50 million in additional payments as TGE completes certain projects.
Dallas-based TGE has developed and monetized more than 6 GW of utility scale solar and wind projects since its inception in 2009.
Earlier in the day, clean energy investor Altius Renewable Royalties Corp said that even after Enbridge’s buyout it would continue to receive royalty contracts from projects in TGE’s current development pipeline until a joint venture hits its threshold return on the $46.5 million it has invested in TGE.
The royalty contracts are committed to Altius through Great Bay Renewables LLC, the JV with affiliates of Apollo Global Management (NYSE:) Inc.