September 16 (Renewables Now) - Calgary-based utility TransAlta Corp (TSE:TA) today announced a CAD-2-billion (USD 1.5bn/EUR 1.36bn) Clean Energy Investment Plan, which includes coal-to-gas conversions in Canada and renewable energy projects already under construction.
The investment in renewables is estimated at CAD 800 million. More specifically, it includes four wind farm projects in the Canadian province of Alberta and the US. The parks have long-term power purchase agreements (PPAs) in place with “highly creditworthy counterparties”.
The coal-to-gas conversions under the plan will take place at three thermal power plants (TPPs) in Alberta. There, the coal burners will be replaced with natural gas burners in 2020 and 2021. In addition, TransAlta said it will convert two units to highly efficient combined cycle natural gas units in 2023-2024. The projects are seen to lower plant costs and emissions, extend the life and cash flows of the Alberta TPPs, and position TransAlta's fleet as a low-cost generator in the Alberta energy-only market, the company said.
The funds for the Clean Energy Investment Plan will come from TransAlta Renewables Inc, cash generated from operations, and Brookfield Renewable Partners LP’s (TSE:BEP.UN) investment in TransAlta.
(CAD 1 = USD 0.75/EUR 0.68)