ATCO snaps up Suncor renewables portfolio, enters PPA with Microsoft

Canadian Utilities Ltd (TSE:CU) last week wrapped up the acquisition of Suncor Energy Inc’s (TSE:SU) wind and solar assets of over 1.7 GW and announced a power off-take deal with Microsoft Corp (NASDAQ:MSFT) for one of the projects.

The unit of Calgary-based power generation company ATCO company has bought a 232-MW portfolio of wind parks in operation and a more than 1,500-MW development pipeline of wind and solar projects located in Alberta and Ontario. The acquisition was originally agreed in October 2022 as part of Suncor’s plan to focus on hydrogen and renewable fuels.

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The final acquisition price stands at CAD 713 million (USD 532.2m/EUR 496.5m). It was adjusted after existing partners on the Chin Chute and Magrath Wind projects opted to acquire an additional interest in the schemes.

ATCO noted that two of the projects, which were under construction at the time of the initial agreement, are already up and running. These are Forty Mile Wind Phase I and Adelaide Wind.

POWER PURCHASE AGREEMENT (PPA)

Under a contract running for 15 years, ATCO will be supplying 150 MW of power to Microsoft from the 202-MW Forty Mile Wind Phase 1 in Alberta. The plant’s generation will support the software giant’s goal of using 100% renewable energy for its operations by 2025.

In the spring of 2022, Microsoft clinched a 15-year deal to procure the entire output of ATCO’s 37-MW Deerfoot solar project in Calgary, Alberta.

(CAD 1.0 = USD 0.746/EUR 0.696)