The deal covers the Canadian firm’s stakes in the 30MW Magrath wind farm, 30MW Chin Chute wind farm, and the 40MW Adelaide wind farm along with the upcoming 202MW Forty Mile wind farm and more than 1.5GW development stage renewable power assets
The sale by Suncor involves its stake in the Magrath wind farm and other wind and solar assets in Canada. (Credit: Suncor Energy Inc.)
Canadian energy company Suncor has agreed to divest its wind and solar assets, which includes a suite of 252MW operating wind farms, to Canadian Utilities, an ATCO company, for C$730m ($537.8m).
The assets and projects involved in the deal are located in the Canadian provinces of Alberta and Ontario.
The sale has been taken up by Suncor for concentrating on areas of energy expansion, renewable fuels, and hydrogen. The company said that the three areas are more complementary to its main business as it aims to become net-zero by 2050.
Suncor interim president and CEO Kris Smith said: “Divesting of these wind and solar assets further streamlines our portfolio so that we can concentrate our efforts on our core business.
“Our ESG efforts will continue to advance in other areas that are complementary to our core business such as replacing coke-fired boilers at Base Plant with lower emission cogeneration units, investing in hydrogen and low-carbon fuels and accelerating commercial scale deployment of carbon capture technology.”
The deal covers Suncor’s stakes in the 30MW Magrath wind farm, 30MW Chin Chute wind farm, and the 40MW Adelaide wind farm. It also includes the 202MW Forty Mile wind farm in Alberta, which is anticipated to begin operations by the year end as well as more than 1.5GW development stage renewable power assets.
ATCO said that the deal places it on a firm trajectory to become a significant renewable player and help reach its previously announced target of owning, developing, or managing over 1GW of renewable energy by the end of this decade.
ATCO and Canadian Utilities corporate development executive vice president Bob Myles said: “ATCO has been at the forefront of the energy transition for decades, and this investment further cements our position as a leader in delivering cleaner electricity and cleaner fuels to our customers and communities.
“Through this investment, we instantly add a new wind power position to our growing renewables portfolio, we bring additional high-quality wind and solar development opportunities into our growth pipeline, and we expand our renewables driven earnings base.”
The deal, which is subject to customary conditions such as applicable third-party regulatory reviews and approvals among others, is anticipated to close in Q1 2023.