CALGARY, AB, Oct. 22, 2020 /PRNewswire/ - TransAlta Renewables
Inc. ("TransAlta Renewables" or the "Company") (TSX: RNW) announced
today that Southern Cross Energy ("SCE") has amended and extended
its current power purchase agreement ("PPA") with BHP Billiton
Nickel West Pty Ltd ("BHP") in respect of SCE's 245 MW of
generation facilities in the Goldfields region of Western Australia. The amendment to the PPA
replaces the previous contract that was scheduled to expire
December 31, 2023. The Company owns
an indirect economic interest in SCE.
"This is an exciting announcement for our Australian business
and continues a strong relationship with our customer BHP Nickel
West," said John Kousinioris,
President and Chief Executive Officer of TransAlta Renewables.
"Western Australia is an important
market for us, where we have been operating for over 24 years."
The PPA amendment extends the term to December 31, 2038 and provides SCE with the
exclusive right to supply electrical energy to BHP's mining
operations located in the Goldfields region of Western Australia. The amendment preserves
SCE's current economic benefit to 2023, while also providing SCE a
return of and on new capital investments which will be required to
support BHP's future power requirements and recently announced
emission reduction targets. The PPA provides BHP with the ability
to integrate renewable electricity generation, including solar and
wind, with energy storage technologies, to meet its emissions
reduction targets and deliver lower carbon, sustainable nickel to
its customers. The amended PPA also provides BHP participation
rights in new capital investments, subject to the satisfaction of
certain conditions.
The evaluation of renewable energy supply and carbon emissions
reduction initiatives under the extended PPA with SCE are already
under way, including an 18.5 MW solar photovoltaic farm at Nickel
West's Leinster and Mount Keith operations, supported by a battery
energy storage system. A 17 MW waste heat steam turbine system at
the Kalgoorlie Smelter is also being evaluated to provide
low-emissions electricity from furnace heat recovery.
About TransAlta Renewables Inc.
TransAlta Renewables is among the largest of any publicly
traded renewable independent power producers ("IPP") in
Canada. Our asset platform and economic interests are
diversified in terms of geography, generation and counterparties
and consist of interests in 23 wind facilities, 13 hydroelectric
facilities, seven natural gas generation facilities, one solar
facility, one natural gas pipeline, and one battery storage
project, representing an ownership interest of 2,537 megawatts of
owned generating capacity, located in the provinces of British Columbia, Alberta, Ontario, Québec, New
Brunswick, the States of Wyoming, Massachusetts, Minnesota and the State of Western
Australia. Our objectives are to (i) provide stable,
consistent returns for investors through the ownership of, and
investment in, highly contracted renewable and natural gas power
generation and other infrastructure assets that provide stable cash
flow primarily through long-term contracts with strong
counterparties; (ii) pursue and capitalize on strategic growth
opportunities in the renewable and natural gas power generation and
other infrastructure sectors; (iii) maintain diversity in terms of
geography, generation and counterparties; and (iv) pay out 80 to 85
per cent of cash available for distribution to the shareholders of
the Company on an annual basis.
Cautionary Statement Regarding Forward Looking
Information
This news release contains forward looking statements within
the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "may",
"will", "project", "should", "propose", "plans", "intends" and
similar expressions are intended to identify forward looking
information or statements. More particularly, and without
limitation, this news release contains forward looking statements
and information relating execution of the and the potential
benefits of the contract renewal; the integration of renewable
electricity generation, including the 18.5 MW solar photovoltaic
farm at Nickel West's Leinster and Mount Keith operations, and a 17
MW waste heat steam turbine system at the Kalgoorlie
Smelter. These forward looking statements are based on a
number of assumptions considered by the Company to be reasonable as
of the date of this news release, including, but not limited to,
the following: no significant changes to applicable laws and
regulations, including any tax and regulatory changes; no
significant changes to our relationship with BHP; and assumptions
regarding our current strategy and priorities, including as it
pertains to behind-the-fence investment in Western Australia. The forward looking
statements are subject to a number of risks and uncertainties that
may cause actual performance, events or results to differ
materially from those contemplated by the forward looking
statements, which include: disruptions to natural gas fuel
source, changes in economic and market conditions; changes in
tax, environmental, regulatory and other laws and regulations; and
other risks and uncertainties discussed in the Company's materials
filed with the Canadian securities regulatory authorities from time
to time and as also set forth in the Company's Annual Information
Form and Management's Discussion and Analysis for the year
ended December 31, 2019, filed under the Company's profile
with the Canadian securities regulators
on www.sedar.com. Readers are cautioned not to
place undue reliance on this forward-looking information, which is
given as of the date it is expressed in this news release. The
Company undertakes no obligation to update or revise any forward
looking information except as required by law.
Note: Unless otherwise noted, all financial figures are in
Canadian dollars.
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SOURCE TransAlta Renewables Inc