ATCO Acquires RE Portfolio Worth C$730 M From Suncor Energy

Canadian Utilities Limited said that it has signed an agreement with Suncor Energy under which the utility firm will acquire a strong portfolio of wind and solar assets and projects located in Alberta and Ontario regions of Canada. The deal is achieved for a purchase price of C$730 million. Suncor is an Alberta based integrated energy company and Canadian Utilities is owned ATCO. The official statement held that the transaction is expected to close in the first quarter of 2023.

Nancy Southern, Chairman & CEO, ATCO and Canadian Utilities, held, “Achieving Canada’s net-zero ambitions without sacrificing affordability and reliability requires that we pursue a range of low-carbon energy solutions, including renewable electricity, hydrogen, and natural gas.”

Bob Myles, Executive VP, Corporate Development, ATCO and Canadian Utilities, said, “Through this investment, we instantly add a new wind power position to our growing renewables portfolio, we bring additional high-quality wind and solar development opportunities into our growth pipeline, and we expand our renewables driven earnings base.”

ATCO also said that the acquisition is expected to be earnings and cash flow accretive in 2023. It includes a diversified operating portfolio of wind assets – including the new 202 MW Forty Mile wind project in Alberta and a majority interest in the Adelaide wind facility in Ontario.

The Alberta wind project is expected to be operational by the end of 2022. The offtake from Adelaide is contracted under a long-term power purchase agreement (PPA) and ATCO is in contract discussions with credit worthy counterparties on the Forty Mile project. ATCO also secures a development pipeline with more than 1,500 MW of wind and solar projects at various stages of development, including several late-stage projects.

ATCO said that this investment puts the company on a firm trajectory to become a major renewable player and achieve our previously announced goal of owning, developing or managing more than 1,000 MW of renewable energy by 2030. ATCO wants to achieve net-zero greenhouse gas emissions by 2050.

Canadian Utilities Limited 

With assets of $21 billion, Canadian Utilities Limited has a diversified global energy infrastructure corporation delivering essential services and innovative business solutions in Utilities (electricity and natural gas transmission and distribution, and international electricity operations); Energy Infrastructure (electricity generation, energy storage, and industrial water solutions) and Retail Energy (electricity and natural gas retail sales).