Enbridge Inc. (ENB), Canada’s largest oil-pipeline operator, purchased a 50-megawatt solar farm in Nevada from First Solar Inc. (FSLR) to help offset carbon emissions from the electricity it consumes.
The Silver State North project, about 40 miles (64 kilometers) south of Las Vegas on federal land, will be completed in May and First Solar expects to record revenue from the sale in the second quarter, the companies said today in a statement. They didn’t give a price.
The acquisition marks Enbridge’s first move in the U.S. solar market and will help it meet a goal of generating as much energy from renewable sources as its operations consume. The project will produce enough power for about 9,000 Nevada homes and will displace about 42,000 metric tons of carbon dioxide a year, the equivalent of 8,000 cars, according to the statement.
Output from the 600-acre solar farm will be sold to Las Vegas-based NV Energy Inc. (NVE) under a 25-year power purchase agreement that was approved by Nevada regulators in 2010.
First Solar, based in Tempe, Arizona, rose 2.4 percent to $26.95 at 10:12 a.m. in New York.
Calgary-based Enbridge rose 0.5 percent to C$37.42 in Toronto.