Canada's Enbridge Inc set out plans on 1 March to invest USD $2.4 billion (€2.2bn) in natural gas and liquids infrastructure and renewable power - and added the US presents better investment opportunities due to green energy subsidies.
According to the Calgary-based company, Biden's Inflation Reduction Act - the $430bn (€404bn) clean energy subsidy package - makes the US more competitive for attracting capital investment.
"Right now in the United States there are some more attractive elements when it comes to covering capital costs, and then operating costs on an ongoing basis," chief executive Greg Ebel said at a new conference following Enbridge's investor day.
"They've really put a lot of carrots on the table in terms of promoting people to invest there."
The company has invested $80 million (€75m) to purchase a 10% equity stake in Divert Inc, a US-based company that converts food waste to energy, the latest in a string of investments by major energy companies in biogas, which can replace traditional natural gas but is more costly to produce.
The agreement includes further investment opportunities to develop food-waste-to-RNG projects across the US, which Enbridge said will lead to more than $1 billion of new capital growth underpinned by long-term contracts.
Enbridge, which moves about 20% of all gas consumed in the United States, will also put C$2.4bn (€1.6bn) towards gas transmission modernisation and announced plans to acquire US Gulf Coast gas storage assets for $335m (€314m) to strengthen its liquefied natural gas (LNG) export business.
The assets, known as Tres Palacios, comprise of 35 billion cubic feet of gas storage and the deal looks to tap into high demand for North American LNG exports after Russia's invasion of Ukraine upended global gas supplies.
Enbridge added it expects its renewable portfolio to grow over 400% by 2028. The company also forecast an annual core earnings growth rate of 4%-6% through 2025.
Enbridge invests $2.4bn in renewables with US emphasis
