Enbridge Inc. (ENB - Free Report) and its partners recently commenced construction of the Fécamp offshore wind farm in the northern part of France. The speed of launching the project is remarkable, considering the fact that the partners finalized the financing agreements last weekend. The project is expected to cost €2 billion ($2.23 billion).
The farm is expected to have 71 wind turbines within 13-22 kilometers off the coast of the northwest part of the country. It is anticipated to generate 500 megawatts once it comes online in 2023. More than 60% of the Seine-Maritime department's population (around 770,000 people) will receive power from the project. The project — which has an estimated service life of 25 years — is supported by a power purchase agreement for 20 years, signed in June 2018.
The construction phase of the wind farm will likely create more than 1,400 jobs for the localites. It will also generate 100 full-time jobs at the Fécamp port for maintenance of the farm.
Enbridge holds a 35% stake in the project through Éolien Maritime France SAS. The company has 1.4 gigawatts of onshore renewable power generation capacity in North America. It also has several offshore wind projects in Europe. The company has a total of 28 facilities, which have 1.8 gigawatts of net operational power generation capacity, in its portfolio.
Enbridge has EDF Renewables and wpd offshore as partners in the Fécamp offshore wind farm project. While EDF Renewables has a 35% interest in the project, wpd offshore holds the remaining 30% stake.
Enbridge’s shares have rallied 21.2% from the beginning of the second quarter compared with 34% growth of the industry it belongs to.
Zacks Rank & Other Stocks to Consider
Enbridge currently has a Zacks Rank #2 (Buy). Other top-ranked players in the energy space include Chesapeake Energy Corporation , CNX Resources Corporation (CNX - Free Report) and Comstock Resources, Inc. (CRK - Free Report) , each holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chesapeake Energy delivered an average positive earnings surprise of 42.8% in the last four quarters.
CNX Resources beat earnings estimates thrice and met once in the last four quarters, with average positive surprise of 111.5%.
Comstock Resources’ 2020 sales are expected to gain 32.7% year over year.
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