TransAlta Renewables buys into Wyoming wind farm
Newly spunoff unit of TransAlta has strategy to grow in U.S.
Calgary’s TransAlta Renewables Inc. plans to buy a stake in a 144-megawatt wind farm in Wyoming for $102 million US, its first such project in the western U.S.
TransAlta Renewables, 80 per cent owned by power company TransAlta Corp. says it plans the investment as jumping off point for U.S. expansion.
“The acquisition marks our first wind project in the western United States and aligns with our strategy of growing our renewables platform and diversifying our presence in the region,” said Dawn Farrell, president and CEO of TransAlta.
TransAlta Renewables Inc. will use a loan from TransAlta equal to the purchase price to indirectly acquire the asset from an affiliate of NexEra Energy Resources LLC. It expects to repay the loan within 36 months out of cash flow, the company said.
The wind farm is fully operational and under a long-term power purchase agreement until 2028, meaning it will create cash flow immediately, it said in a news release.
The acquisition, subject to regulatory approvals, is expected to close by the end of December.
TransAltaRenewables shares ownership interest with TransAlta in 28 other wind and hydroelectric generation facilities with installed generating capacity of 1,234 MW. It was spun off as a separate publicly-listed company in August.