Suncor, TransAlta exchange assets in oil-sands power deal

CALGARY, Alberta -- Suncor Energy has reached an agreement with TransAlta Corporation to exchange Suncor's Kent Breeze and its share of the Wintering Hills wind power facilities for TransAlta's Poplar Creek cogeneration facilities. The Poplar Creek facilities provide steam and power for Suncor's oil sands base site in Fort McMurray Alberta.

As part of the agreement, Suncor will acquire two steam turbine generators, transmission and distribution infrastructure, including the interconnection to the Alberta power grid, and the balance of plant assets at the 376 megawatt (MW) Poplar Creek cogeneration facility. Additionally, under a contract with TransAlta until 2030, Suncor will assume operating control of two gas turbine generators and heat recovery steam generators at Poplar Creek. Following 2030, ownership of the gas turbine generators and heat recovery steam generators will transfer to Suncor.

The acquisition of the Poplar Creek cogeneration facilities is consistent with Suncor's strategy of integrating related assets with its base operations to enhance reliability and efficiency.

TransAlta will acquire the 20 MW Kent Breeze wind power facility located near Thamesville, Ontario as well as Suncor's 51% interest in the 88 MW Wintering Hills wind power facility located near Drumheller, Alberta.

Once the transaction has closed, Suncor's renewable energy portfolio will include five operational wind power projects, one project in development and Canada's largest ethanol production facility.

The transaction is expected to close in the third quarter of 2015.