The company will acquire two steam turbine generators, transmission and distribution infrastructure and other assets at the cogeneration facility.
The Poplar Creek facilities supply steam and power to Suncor’s oil sands complex in Alberta.
As part of the deal, Suncor will also operate two gas turbine generators and heat recovery steam generators at Poplar Creek until 2030. The company will take over the plants thereafter.
The acquisition is in line with Suncor’s plan to improve efficiency of its base operations by integrating related assets.
TransAlta will gain control of Suncor’s 20MW Kent Breeze wind plant near Thamesville, Ontario and Suncor’s 51% stake in 88MW Wintering Hills wind project near Drumheller, Alberta.
Subject to regulatory approval, the transaction is planned to be completed in the third quarter.
Upon completion of the transaction, Suncor will have five wind projects in operation, one in development and an ethanol production facility in Canada.
