Yahoo Finance Enbridge (ENB) Joins Indigenous Wind Partnership in Saskatchewan
Enbridge Inc. ENB has announced a groundbreaking partnership with six indigenous groups to develop the Seven Stars wind project, a 200-megawatt wind farm in southeast Saskatchewan.
The initiative is designed to generate enough power for 100,000 homes and is scheduled to become operational in 2027. The project is supported by a C$100-million loan guarantee from the Saskatchewan Indigenous Investment Finance Corp.
The collaboration marks the first time Enbridge has partnered with Indigenous communities on a wind farm, reflecting a broader trend among Canadian energy companies to engage with Indigenous communities, particularly when operations impact their lands. This strategy can help mitigate environmental and legal opposition, facilitating smoother project development.
In 2022, Enbridge made a significant move by divesting a 12% stake in seven pipelines in Alberta to 23 First Nations and Métis communities for C$1.12 billion. This was part of a growing trend wherein companies like Pembina Pipeline Corporation PBA are partnering with Indigenous groups, such as the Haisla Nation, on projects like the British Columbia liquefied natural gas plant. The Canada government is also considering divesting a stake in the Trans Mountain oil pipeline to Indigenous groups.
The Six Nations Energy Development LP, a newly formed consortium, is a key partner in the Seven Stars wind project. This consortium includes the Cowessess First Nation, George Gordon First Nation, Kahkewistahaw First Nation, Métis Nation-Saskatchewan, Pasqua First Nation and White Bear First Nations. These groups can acquire up to a 30% stake in the project.
Enbridge, with more than 75 years of operation in Saskatchewan, has a long-standing commitment to working closely with the province, local communities, and First Nations and Métis peoples. The Seven Stars wind project aims to produce emission-free electricity for Saskatchewan, providing a stable revenue source that will benefit the local communities for many years to come.
Enbridge, primarily known for its oil and liquid transportation via pipelines, currently derives about 3% of its core earnings from its renewables business. The company is planning to expand its presence in the European offshore wind market but will avoid investments in the United States due to rising costs and supply-chain issues affecting projects there.
Zacks Rank & Key Picks
Currently, Enbridge carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC and Sunoco LP SUN, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, focusing on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
The Zacks Consensus Estimate for AROC’s 2024 and 2025 EPS is pegged at $1.07 and $1.23, respectively. The company has a Zacks Style Score of A for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes above 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value and Growth Score of A.
The Zacks Consensus Estimate for SUN’s 2024 and 2025 earnings per unit is pegged at $7.29 and $7.17, respectively. The partnership has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
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