Coal News: TransAlta taps Alstom for major maintenance agreement


TransAlta Corporation has entered into an agreement with Alstom to provide major maintenance for TransAlta’s Alberta coal facilities (TransAlta’s Keephills power plant)

TransAlta Corporation (TSX: TA; NYSE: TAC) has entered into an agreement with Alstom to provide major maintenance for TransAlta’s Alberta coal facilities.

The agreement with Alstom relates to ten major maintenance projects over the next three years at TransAlta’s Keephills and Sundance plants. It also expands Alstom’s current scope of work to service critical power assets, including boilers, steam turbines, generators and other plant equipment. Alstom will be accountable for providing its services on budget and on time with a guarantee on performance.

“Alstom is an international industry leader and we already partner with them in other key areas of TransAlta’s business,” said Wayne Collins, executive vice-president, Coal and Mining Operations at TransAlta. “We look forward to working closely with Alstom to deliver this work program and to see the benefits materialize.” 

The new arrangement is expected to deliver an average 15 percent cost reduction per turnaround and shorter turnaround times for major maintenance work - resulting in estimated direct cost savings of $34 million over the full term of the agreement, which in turn contributes to improvement of TransAlta’s overall financial performance. “Cost management and disciplined operations are all part of keeping Alberta’s electricity grid and our customers supplied with reliable cost-effective power,” said Collins.

Feilim Coyle, vice-president, Thermal Services North America at Alstom, said: “Alstom is proud to have been selected by TransAlta to provide maintenance planning and services for its thermal power generation fleet in central Alberta. This long-term service agreement demonstrates Alstom’s capabilities to tailor equipment service activities based on the comprehensive understanding of TransAlta’s assets and operational requirements.”

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