TransAlta Corporation (TSX: TA; NYSE: TAC) and MidAmerican Energy Holdings Company have formed a new strategic partnership for the development and operation of new gas-fueled power generation projects in Canada.
This partnership builds on an existing successful relationship. The extensive power development and operating experience of both companies, combined with TransAlta’s deep knowledge of the Canadian markets and MidAmerican’s financial strength, is expected to accelerate gas-fueled power development for both partners.
“The creation of this partnership is a new and exciting development in our growth strategy and better positions the two companies to pursue significant growth opportunities in Canada,” said Dawn Farrell, TransAlta president and CEO. “Studies are showing that more than $200 billion worth of new investment in power generation is needed in Canada over the next 20 years. MidAmerican is a strong partner to enable us to capture a sizeable share of that market opportunity, and this project will build off our already existing business relationship, which dates back to 2001.”
“At MidAmerican, we have been seeking an entry point to the Canadian electricity generation market, where we see strong potential for growth,” said Greg Abel, chairman, president and CEO of MidAmerican. “We are joining forces with a company that has more than 100 years of history and a well-established reputation for building and operating excellent power projects. Our two companies also have similar cultures and a shared commitment to safe, reliable operations. The partnership will bring two strong development teams together to deliver clean, highly efficient power to the region.”
The agreement encompasses all new natural gas-fueled generation opportunities considered by either TransAlta or MidAmerican in Canada, including TransAlta’s proposed Sundance 7 project, an up to 800-megawatt project based in Alberta, Canada. All development and construction or acquisition of approved projects will be funded on a 50-50 basis, and TransAlta will be responsible for construction management, operation and maintenance of projects that proceed.