Enbridge (ENB -1.21%) can see the writing on the proverbial wall. It knows that the world needs to wean itself from its addiction to fossil fuels and switch to cleaner alternatives. That has led the Canadian pipeline and utility giant to steadily pivot its business toward lower-carbon energy.

The company's investments in lower-carbon energy will help grow and sustain its cash flows so that it can continue increasing its high-yielding dividend (currently yielding 7.9%). The company made lots of progress on its strategy last year, which its management team discussed on the fourth-quarter conference call.

Buying into a more sustainable future

Enbridge is taking a multipronged approach to the energy transition. One aspect of its strategy is to acquire infrastructure assets that supply it with incremental cash flow and growth potential. The company is in a strong position to find deals. CEO Greg Ebel commented on the call, "Our scale and diversification and investing approach to renewables allows us to continue to find attractive opportunities even as returns compress for many across the sector."

The CEO then detailed a couple of acquisitions it made last year. He pointed out, "In Germany, we acquired additional interests in the Hohe See and Albatros offshore wind farms. These are high-quality operating assets that we know well, and the transaction is immediately accretive to our distributable cash flow." Enbridge initially invested in those projects in 2016 when they were still under development. It now owns a larger stake in those operational wind farms.

Enbridge also expanded its renewable natural gas (RNG) platform last year. Ebel noted that:

We announced the acquisition of several high-quality operating landfill waste RNG assets in Texas and Arkansas from Morrow Renewables. These investments align with Enbridge's utility-like cash flow framework and are underpinned by long-term offtake contracts. The landfills we acquired are expected to double in size by 2040 with minimal capital investment, which will supplement our growth for years to come.

Enbridge will likely continue acquiring lower-carbon infrastructure in the future. That's because those investments align with its strategy of supporting its energy transition and growing its earnings.

Building out a more sustainable business

The other aspect of Enbridge's lower-carbon growth strategy is to invest in development projects. It has several capital projects currently under construction and more in the pipeline. The company has two offshore wind farms in France slated to enter commercial service early this year and another for 2025. Meanwhile, the CEO noted that the company was "awarded the right to develop a 1 gigawatt offshore wind farm in Normandy, which we expect could enter service around 2030." It's developing that project with long-standing partner EDF. The two companies have since "extended the partnership onshore in North America where we jointly are constructing and operating the 577-megawatt Fox Squirrel solar facility in Ohio." The project's first phase came online late last year, with additional phases expected to start construction this year.

Enbridge is also working on emerging lower-carbon technologies. One notable project is its blue ammonia partnership with Yara International. The companies would construct a low-carbon blue ammonia production facility at Enbridge's Ingleside Energy Center in the U.S. Ebel noted:

This potential investment highlights the value of existing and diversified infrastructure to the energy transition. The proposed facility will source feed gas from our Texas Eastern gas pipeline, and the associated emissions will be sequestered in a nearby carbon storage facility through our partnership with Occidental Petroleum.

The company is also working on a potential carbon capture, utilization, and storage hub in Canada.

These investments showcase the company's ability to leverage its existing infrastructure and expertise to find value-enhancing investment opportunities across the lower-carbon space. These investments will supply the company with new platforms to grow its cash flow. That should give Enridge more fuel to increase its dividend. This year marks its 29th straight year of dividend growth.

Ensuring it has the fuel to continue growing

Enbridge is helping lead the lower-carbon energy transition. It's acquiring lower carbon infrastructure and investing in developing new projects, including emerging opportunities like blue ammonia and carbon capture. These investments will grow its cash flow, giving Enbridge more power to continue increasing its high-yielding dividend. That makes it an excellent income stock to own for the long haul.