Canada’s ATCO has agreed to sell most of its 2.1 GW fossil fuel-fired generation fleet, the majority of which is located in Alberta, to Energy Capital Partners.

The private equity buyer will acquire 11 assets for $835 million through a portfolio company called Heartland Generation.

The deal is expected to close in the second half of 2019, subject to regulatory approvals.

In a separate transaction, meanwhile, ATCO will sell a twelfth asset, its 50% stake in the 260 MW Cory Cogeneration Station near Saskatoon, Saskatchewan, to SaskPower International.

The two deals conclude a strategic evaluation announced by ATCO on Sept. 13. The company is working with JP Morgan and RBC Capital Markets on the sale process, as reported previously (PFR, 1/28).

ATCO owns the thermal portfolio, which includes wholly as well as partially owned plants, through its Canadian Utilities Limited subsidiary. Most of the gas- and coal-fired projects were commissioned between 15 and 25 years ago, although one unit dates back to 1965 (see table below).

“We are focused on building a globally diversified portfolio of energy-related infrastructure assets,” said Siegfried Kiefer, president & ceo of Canadian Utilities, in a statement. “Continually evaluating our business model and strategies ensures we are well-positioned to capture opportunities in markets at home and abroad.”

Canadian Utilities is not selling its ASHCOR Technologies fly ash marketing business, its stake in the 32 MW Oldman River hydro project or any of its international projects.


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