TransAlta Corporation is pleased to announce its strategic growth targets, which strengthen the Company’s commitment to being a leader in clean electricity by delivering customer-centered power solutions. The strategic growth targets include adding 2 GW of new capacity to the Company’s fleet, and investing approximately $3 billion developing, constructing and acquiring new assets by the end 2025.
“We have significant growth aspirations across Canada, the United States and Australia with a focus on renewable and storage power solutions for large customers,” remarked John Kousinioris, President and Chief Executive Officer of TransAlta. “As we look forward to 2025, we are confident in our investment strategy and the decision to expand further into contracted renewables with onshore wind, solar and battery storage across our platform. We believe this enhanced customer focus on renewable generation and storage will provide significant value for our shareholders.”
The Company is also pleased to announce that its Board of Directors (the “Board”) has approved an 11 per cent increase on its common share (“Common Share”) dividend and declared a dividend of $0.05 per Common Share to be payable on January 1, 2022 to shareholders of record at the close of business on December 1, 2021. The quarterly dividend of $0.05 per Common Share represents an annualized dividend of $0.20 per Common Share.
“This decision represents the third dividend increase by the Company in the past two years and reflects the Board’s confidence in the Company’s strategic direction while affirming the Company’s commitment to realizing returns for its shareholders,” said John Kousinioris.
Alberta Thermal Retirements and Suspension of Sundance 5 Repowering
Following an in-depth evaluation and assessment of the Sundance Unit 5 repowering project, the Company has determined to suspend the project. This decision was made due to escalating costs, changing supply and demand dynamics and forecasted power prices in the Alberta market, as well as risks associated with the evolving regulatory environment. The Company expects to redeploy the capital previously allocated to the Sundance Unit 5 repowering to renewable growth projects.
In addition, the Company has determined to retire Keephills Unit 1 effective December 31, 2021, and to retire Sundance Unit 4 effective April 1, 2022, and has provided notice to the Alberta Electric System Operator of its intention to retire such units. The retirement decisions were largely driven by TransAlta’s assessment of future market conditions, the age and condition of the units and the Company’s strategic focus toward customer-centred renewable energy solutions. These retirements further support the Company’s decarbonization efforts, which also include ceasing all coal fired generation in Canada by the end of 2021 and across its fleet by the end of 2025. TransAlta expects that by 2030, it will reduce emissions by 70 per cent over 2005 levels and it remains committed to achieving carbon neutrality by 2050.
Accelerating Customer-Centred Clean Electricity Growth Plan
The Company’s recently adopted strategic growth targets include:
The Company is actively advancing its development pipeline, which currently consists of 1.2 GW in the United States, up to 2 GW in Canada and 270 MW in Australia. The recently announced acquisition of a 122 MW portfolio of operating solar facilities located in North Carolina, which is expected to close in mid-October, will represent a significant expansion of the Company’s solar generation. The Company intends to further expand its solar generation by actively pursuing solar opportunities in the United States and Australian markets. The Company is also focused on pursuing hybrid integrated power solutions with customers.
TransAlta will be hosting an Investor Day later today at 10:00 am EDT during which our executive team will discuss our strategic objectives and growth targets, our leading approach to environment, social and governance matters, our strategy to optimize and maintain our competitive advantage in Alberta, our commitment to delivering operational excellence, and our financial strategy and plan. The presentation will be broadcast live via webcast with video and will be accessible by web browser. The recorded video webcast and corresponding presentation will also be made available on the Investor Centre section of TransAlta’s website at http://www.transalta.com/investors/events-and-presentations following the event.
Webcast attendees can pre-register to receive web access information for the live event below. Registration for the event can also be found in the Investor Centre of TransAlta’s website.
2021 Investor Day – TransAlta
September 28, 2021
Start time: 8:00 a.m. MT / 10:00 a.m. EDT
About TransAlta Corporation:
TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers clean, affordable, energy efficient, and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydroelectric power. For over 100 years, TransAlta has been a responsible operator and a proud community-member where its employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and we have been recognized by CDP (formerly Climate Disclosure Project) as an industry leader on Climate Change Management, having recently achieved an A- score from CDP.
For more information about TransAlta, visit its web site at transalta.com