TransAlta awarded 25-year power purchase agreement with New Brunswick Power; announces expansion of Kent Hills wind farm to 150
January 11 2010 - 7:30AM
Marketwired
TransAlta Corporation (TSX: TA) (NYSE: TAC) today announced it has
been awarded a 25-year power purchase agreement (PPA) to provide an
additional 54 megawatts (MW) of wind power to New Brunswick Power
Distribution and Customer Service Corporation.
Under the agreement, TransAlta will expand its existing 96 MW
Kent Hills wind facility which began commercial operations in
December 2008. While terms of the agreement are confidential, the
capital cost of the project is estimated to be $100 million. The
project is subject to regulatory and environmental approvals and is
expected to begin commercial operations by the end of 2010.
"We are pleased to have been awarded another long-term PPA with
New Brunswick Power, and continue our strong relationship with
them," said Steve Snyder, TransAlta's President and CEO. "With the
completion of the Kent Hills expansion next year, we will have over
1,000 MW of wind power and over 2,000 MW of renewable energy in
operation across Canada and the United States."
The 18-turbine expansion will be located just south of the
current Kent Hills wind facility which is southwest of Moncton, NB.
The facility will use V90-3.0 MW wind turbines purchased from
Vestas. TransAlta expects construction to commence in early 2010
and the facility to be in service by the end of 2010. Once
complete, the facility is expected to provide 160,000 megawatt
hours per year, enough electricity to meet the needs of
approximately 9,000 homes.
TransAlta will work with local firms for the construction and
ongoing operation of the Kent Hills wind farm providing long-term
economic benefits to the region.
Natural Forces Technologies Inc. (NFT), a local Atlantic Canada
wind developer, is TransAlta's co-developer in the Kent Hills
expansion project. Upon completion of the expansion project, NFT
will have the option to purchase a 17 per cent interest in the new
operating facility. In 2009, NFT purchased a 17 per cent interest
in TransAlta's existing Kent Hills wind farm.
TransAlta is a power generation and wholesale marketing company
focused on creating long-term shareholder value. TransAlta
maintains a low-to-moderate risk profile by operating a highly
contracted portfolio of assets in Canada, the United States and
Australia. TransAlta's focus is to efficiently operate our biomass,
geothermal, wind, hydro, natural gas and coal facilities in order
to provide our customers with a reliable, low-cost source of power.
For nearly 100 years, TransAlta has been a responsible operator and
a proud contributor to the communities where we work and live.
TransAlta is recognized for its leadership on sustainability by the
Dow Jones Sustainability North America Index, the FTSE4Good Index
and the Jantzi Social Index.
This news release may contain forward-looking statements,
including statements regarding the business and anticipated
financial performance of TransAlta Corporation. These statements
are based on TransAlta Corporation's belief and assumptions based
on information available at the time the assumption was made. These
statements are subject to a number of risks and uncertainties that
may cause actual results to differ materially from those
contemplated by the forward-looking statements. Some of the factors
that could cause such differences include legislative or regulatory
developments, competition, global capital markets activity, changes
in prevailing interest rates, currency exchange rates, inflation
levels and general economic conditions in geographic areas where
TransAlta Corporation operates.
Note: All financial figures are in Canadian dollars unless noted
otherwise.
Contacts: TransAlta Corporation - Media inquiries Michael
Lawrence Manager, External Relations (403) 267-7330
michael_lawrence@transalta.com TransAlta Corporation - Investor
inquiries Jennifer Pierce Vice President, Communications &
Investor Relations (403) 267-7622 TransAlta Corporation - Investor
inquiries Jess Nieukerk Manager, Investor Relations (403) 267-3607
investor_relations@transalta.com www.transalta.com
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