Kineticor Resource has secured C$1.5bn ($1.2bn) financing for the Cascade Power Project, a 900MW combined-cycle natural gas-fired generating facility, with construction set to start immediately.
The company closed the financing on the project located near Edson in Alberta with joint development sponsors Macquarie Capital and pension fund OPTrust, and project sponsors OPTrust, Axium Infrastructure and DIF Capital Partners.
For this project, Macquarie served as the exclusive financial advisor and debt arranger to the partnership.
Kineticor CEO Andrew Plaunt said: “Cascade was initially conceived by a group of individuals looking to make a difference as Alberta begins to transition away from coal-fired power generation in the province.
“Today represents the culmination of several years of close collaboration with our development partners at OPTrust and Macquarie, along with consultants, engineers, vendors, gas suppliers and local stakeholders.
“With the financial support from Axium and DIF, along with our project financing partners, achieving this significant milestone of a successful financing will allow us to make Cascade a reality.”
Cascade will be constructed under an engineering, procurement and construction services (EPCS) contract by BPC, a joint venture (JV) between affiliates of PCL Construction and Overland Contracting Canada, a Black & Veatch Company.
Kineticor will act as the construction and asset manager for this project.
During the peak construction phase, the project is expected to create nearly 600 jobs as well as 25 long-term jobs during operation.
The power generating facility will be equipped with Siemens Energy’s two single shaft SCC6-8000H power trains. The company also agreed to provide maintenance support under a long-term service agreement.
The project is expected to commence commercial operations in 2023.
Additionally, it has secured long-term gas netback agreements which are expected to offer cashflow stability and downside protection once the project is commissioned.
Alberta is reported to contribute more than 50% of greenhouse gas (GHG) emissions from electricity generation. Once completed, the Cascade project is expected to minimise the emission levels in the country’s electricity sector.
In February this year, Kineticor Resource obtained key approvals for the Cascade combined cycle power plant in Alberta.