TransAlta and Suncor exchange power generating assets in Canada

8 July 2015 (Last Updated July 8th, 2015 18:30)

Canadian power generator TransAlta has signed an agreement with Suncor Energy to exchange its Kent Breeze wind power facility and 51% interest in its Wintering Hills wind power facility for gas turbine generators and heat recovery steam generators at Poplar Creek.

Canadian power generator TransAlta has signed an agreement with Suncor Energy to exchange its Kent Breeze wind power facility and 51% interest in its Wintering Hills wind power facility for gas turbine generators and heat recovery steam generators at Poplar Creek.

The Poplar Creek facility has a maximum power generation capacity of 376MW. It was built and contracted to provide steam and electricity to Suncor’s oil sands base site near Fort McMurray, Alberta up until 2023.

Under the new deal, Suncor will own two steam turbine generators totalling 132MW, transmission and distribution infrastructure, which includes the interconnection to the Alberta power grid, and the balance of plant assets from the facility.

Along with that, Suncor will have operating control over two gas turbine generators, with a capacity for 244MW of power, along with heat recovery steam generators at the facility. Ownership of these assets will be passed over to Suncor after 2030.

"The Poplar Creek was built and contracted to provide steam and electricity to Suncor’s oil sands base site near Fort McMurray, Alberta up until 2023."

In return, TransAlta has agreed to acquire the 20MW Kent Breeze wind power plant near Thamesville in Ontario, along with Suncor’s 51% stake in the 88MW Wintering Hills facility near Drumheller, Alberta.

This restructuring and asset acquisition deal is subject to customary conditions, and regulatory approvals following which it is likely to be closed in the third quarter.

The transaction increases wind energy assets under TransAlta’s portfolio.