Enbridge Powers Up Texas with $900 Million Solar Project for Meta

Calgary-based Enbridge is making a significant investment of $900 million in a new solar power project in Texas, aiming to meet the growing demand for clean energy from major technology companies. Meta Platforms, the parent company of Facebook and Instagram, has committed to purchasing the entire output of the facility under a long-term contract.

Enbridge's Major Solar Investment

Enbridge has announced a final investment decision for the "Clear Fork" solar project, a substantial 600-megawatt facility located near San Antonio, Texas. This investment underscores the increasing trend of large corporations, particularly in the tech sector, seeking renewable energy sources to power their energy-intensive operations, such as data centers.

Meta's Clean Energy Commitment

Meta Platforms will be the sole off-taker for the Clear Fork project, securing 100% of its renewable energy output through a long-term agreement. This move aligns with Meta's broader strategy to power its regional operations with clean energy, reflecting a wider industry push towards sustainability.

Project Details and Timeline

Key takeaways from the announcement include:

• Investment: Enbridge is investing $900 million USD (approximately $1.22 billion CAD).

• Capacity: The Clear Fork project will have a capacity of 600 megawatts.

• Location: The solar farm is situated near San Antonio, Texas.

• Operational Start: The project is expected to become operational by the summer of 2027.

• Financial Impact: Enbridge anticipates the project will positively contribute to its cash flow and earnings starting in 2027.

Growing Demand for Renewables

Matthew Akman, Enbridge's Executive Vice President of Corporate Strategy and President of Power, highlighted the significance of the Clear Fork project. He stated, "Clear Fork demonstrates the growing demand for renewable power across North America from blue-chip companies who are involved in technology and data center operations." Enbridge is leveraging its financial strength, supply chain capabilities, and construction expertise to advance its renewable energy development portfolio through low-risk commercial models.

Enbridge's Renewable Expansion

While traditionally known for its extensive pipeline network, Enbridge has been actively expanding its investments in renewable energy projects across North America. The Clear Fork project represents a significant step in this strategic diversification, capitalizing on the robust demand from major tech players seeking to reduce their carbon footprint.

Sources

• Canada's Enbridge to invest $900 million in Texas solar project, Yahoo.co.

• Meta Taps Calgary’s Enbridge for Solar Power in $900M Deal, iPhone in Canada.

• Canada's Enbridge to invest $900 mln in Texas solar project, Reuters.