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Enbridge (ENB) Begins Operation in France Offshore Wind Farm

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Enbridge Inc. (ENB - Free Report)  and partners reached a milestone by commissioning France’s first commercial-scale offshore wind project — Saint-Nazaire Offshore Wind Farm.

The resumption of the offshore wind farm adds 480 megawatts (MW) of capacity to the current supply network when Europe is struggling to secure energy supplies after Russia’s aggressive invasion of Ukraine. The project is co-owned by EDF Renewables and CPP Investments.

Located 12-20 kilometers off France’s west coast, the 480-MW Saint-Nazaire wind farm involves 80 turbines at depths of 12-25 meters. The offshore wind farm can power an equivalent of 400,000 homes per year or 20% of the Loire-Atlantique region’s electricity requirements.

Enbridge is involved in three other wind projects in France currently under development, namely Fecamp, Calvados and Provence Grand Large. The company has 23 wind farms in service and under construction, 17 solar energy operations, seven renewable natural gas facilities, two hydrogen facilities, and 10 other renewable power assets.

The Saint-Nazaire project was developed as part of France government’s strategy to expand the country’s renewable power sector. France aims to have around 40 gigawatts of offshore wind capacity in effect by 2050, leading to about 50 offshore wind farms.

Renewables are crucial parts of Enbridge’s low-carbon strategy. The company’s low-carbon portfolio expanded from an investment in a single wind farm in 2002 to more than C$8 billion invested in renewable projects at 2021-end.

The project demonstrates Enbridge’s commitment to a low-carbon future. The new supply of clean and affordable energy is crucial as a global energy crisis confirms the importance of reliable, secure energy.

Price Performance

Shares of Enbridge have underperformed the industry in the past six months. The stock has lost 8.1% compared with the industry’s 5.3% decline.

 

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Zacks Rank & Stocks to Consider

Enbridge currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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Based on the strong macro environment and positive outlook, Cheniere Energy reaffirmed its guidance for 2022. It continues to see annual adjusted EBITDA between $11 billion and $11.5 billion. Cheniere Energy also anticipates a distributable cash flow of $8.1-$8.6 billion.

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