Privately held power producer Kineticor has partnered with one of Canada's pension funds to acquire the partially constructed 690MW cogeneration plant located near Peace River, Canada, from Shell Canada.
The cogeneration plant was part of Shell's 80,000 barrel per day Carmon Creek project.
Kineticor, in partnership with pension fund OPTrust, is planning to repurpose the half-finished project as a standalone power plant, known as the Three Creeks Power Plant.
Kineticor CEO Andrew Plaunt said: "The Alberta power market is going through significant changes over the next decade and this acquisition, coupled with the OPTrust capital commitment, significantly strengthens Kineticor's ability to capitalize on the opportunities that will be presented in this changing marketplace.”
The deal also includes an agreement between Kineticor and Shell for the future development of the plant.
Additionally, OPTrust has committed C$125m ($95.43m) for the development of the project. Financial terms of the deal were undisclosed.
OPTrust global head of infrastructure Gavin Ingram said: "We are delighted with the Three Creeks Power Plant acquisition and look forward to pursuing more growth opportunities within the sector in partnership with Kineticor.”
Shell halted the Carmon Creek project construction in October 2015 due to lack of Canada infrastructure required to move crude oil to markets.
As a result of this decision, the company announced a net impairment, contract provision, and redundancy and restructuring charges of $2bn.