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TransAlta Announces Acquisition of a Contracted Cogeneration Asset in Michigan
TransAlta Announces Acquisition of a Contracted Cogeneration Asset in Michigan Can...
About this update from Transalta Corporation
[{"type":"text","content":"\n\n\n\nTransAlta Announces Acquisition of a Contracted Cogeneration Asset in Michigan\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, March 17, 2020\n\n\n\nCALGARY, March 17, 2020 /CNW/ - TransAlta Corporation (\"TransAlta\") (TSX: TA) (NYSE: TAC) announced today the acquisition of a contracted cogeneration asset from two private companies for a purchase price of approximately US$27 million, subject to working capital adjustments. The asset is a 29 MW cogeneration facility in Michigan which is contracted under a long-term power purchase agreement and steam sale agreement for approximately six years with high quality counterparties. \n\"The acquisition marks our first U.S. cogeneration project and aligns with our strategy of growing our on-site generation business, diversifying our cogeneration portfolio, and increasing the pipeline of assets for potential future drop-downs into TransAlta Renewables,\" said Dawn Farrell, President and Chief Executive Officer of TransAlta. \"The expansion into new geographic markets further enhances our position as a leader in behind the fence generation and provides potential for future opportunities in the U.S. cogeneration space.\" \nThe cogeneration facility, which comprises a single GE LM2500 gas turbine and an ABB steam turbine, has been operational since 1991. The electricity and steam output of the facility are fully contracted providing consistent, predictable revenues through 2026.  The acquisition will be funded with cash on hand. \nInvestment Highlights:\nAttractive cash-on-cash yield and project return acquisition metrics; Expands TransAlta's platform in the U.S. and is an entry into the U.S cogeneration space; Potential drop-down candidate to TransAlta Renewables Inc.; Long-term contracted cash flows with high quality counterparties; and Provides further geographic, technology and counterparty diversification.The acquisition is subject to customary regulatory approvals and is expected to close in the second quarter of 2020.\nAbout TransAlta:TransAlta owns, operates and develops a diverse flee...