Enbridge Inc. has confirmed its final investment decision for the Clear Fork project, a 600-megawatt (MW) solar facility located near San Antonio, Texas. Construction has begun, and the site is expected to be operational by summer 2027. This project is part of Enbridge’s strategy to diversify its presence in the North American large-scale electricity market, while responding to the growing demand from technology players for dedicated energy solutions.
Long-term power purchase agreement with Meta Platforms, Inc.
Meta Platforms, Inc., the parent company of Facebook, has signed a supply agreement for 100% of the output from the Clear Fork site. This long-term power purchase agreement will allow Meta to secure its energy supply for its data centres, while providing Enbridge with visibility on project revenue streams. The total investment cost amounts to $0.9bn, or approximately CAD1.22bn.
Strategic development for Enbridge’s renewable portfolio
The installed capacity of the Clear Fork project strengthens Enbridge’s renewable energy portfolio, which focuses on large-scale assets to consolidate its position in the North American market. The company highlights its expertise in developing, constructing, and managing complex energy projects to attract partners from the technology sector. The construction benefits from Enbridge’s supply chain and industrial organisation, with a business model focused on minimising risks and seeking competitive returns.
Revenue prospects and market integration
Enbridge expects positive impacts on its cash flow and earnings per share starting from the commissioning of the site in 2027. The agreement with Meta Platforms, Inc. reflects the growing trend of large tech companies entering into direct contracts with energy producers to support the expansion of their digital infrastructures. According to Enbridge, these projects offer new growth opportunities for energy operators and help meet the energy security needs of the digital industries. The collaboration between Enbridge and Meta marks a milestone in the development of strategic partnerships between energy and information technology.
