Enbridge Reaches FID on 600 MW Clear Fork Solar Project in Texas

Enbridge has made a final investment decision on Clear Fork, a 600 MW solar project in Texas. Construction has begun, with an expected in-service date of summer 2027. Meta Platforms has signed a long-term contract for the project's renewable output. The estimated project cost is US$0.9b, and it is expected to be accretive to cash flow and earnings per share starting in 2027.

Enbridge Inc. has made a significant stride into the renewable energy sector with its final investment decision on the Clear Fork solar project in Texas. Located near San Antonio, the 600 MW utility-scale solar facility is expected to enter service during the summer of 2027. The project, with an estimated cost of US$0.9 billion, is a strategic move for Enbridge, leveraging its financial strength, supply chain reach, and construction expertise [1].

Meta Platforms, Inc., has secured a long-term contract for 100% of the renewable output from the Clear Fork project. This partnership underscores the growing demand for renewable power from technology companies and data center operators. The contract ensures revenue stability and eliminates merchant price risk for Enbridge, aligning with its conservative risk management approach [2].

The project is anticipated to positively impact Enbridge's cash flow and earnings per share starting in 2027, demonstrating strong projected returns relative to its cost of capital. This expected accretion profile suggests that the deal was structured with favorable economics despite the competitive renewable development landscape. The project positions Enbridge to capitalize on the surging power demand from data centers and AI infrastructure, potentially leading to additional opportunities with technology companies [2].

The $0.9 billion capital commitment is manageable within Enbridge's financial capacity, representing less than 5% of its typical annual capital program. Construction has already begun, with a clear timeline for investment recovery established through its strategic partnership and expected in-service date [1].

Enbridge's foray into renewable energy not only supports its sustainability goals but also aligns with the broader trend of increasing demand for clean energy solutions. The Clear Fork project is a testament to Enbridge's commitment to modern energy delivery infrastructure and its ability to deliver strong competitive returns.

References:
[1] https://www.prnewswire.com/news-releases/enbridge-announces-600-megawatt-solar-project-to-support-meta-platforms-inc-data-center-operations-302510238.html
[2] https://www.stocktitan.net/news/ENB/enbridge-announces-600-megawatt-solar-project-to-support-meta-n4k59ssd378j.html