Canadian energy company Suncor Energy has reached an agreement to sell its solar and wind assets to Canadian Utilities, an ATCO subsidiary, for C$730 million (US$535 million).
The transaction includes a 1.5GW development pipeline of solar and wind projects located in Alberta and Ontario, including several late-stage projects.
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While a majority of the assets acquired are wind projects, with no solar plants operational, the portfolio includes a 220MW solar plant that is in near-term development stage.
Moreover, four other solar projects are in early-stage development, with 490MW of total capacity (as shown in the chart below), with all the solar assets located in Alberta.
This investment brings Canadian utility ATCO closer to achieving its goal of owning, developing or managing more than 1GW of renewable energy by 2030.
Bob Myles, executive vice president, corporate development, at ATCO and Canadian Utilities, said: “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.”
Furthermore, Suncor Energy will be divesting from solar and wind power to focus on hydrogen and renewable fuels, which are more complementary to its core business, according to Kris Smith, interim president and CEO at Suncor.
The transaction is expected to close in the first quarter of 2023, subject to customary closing conditions.
