US$658 million Agreement announced to acquire Heartland Generation and Alberta Power by TransAlta

TransAlta Corporation announced that it has entered into a definitive share purchase agreement with an affiliate of Energy Capital Partners (ECP), under which TransAlta will acquire Heartland and its entire business operations in Alberta and British Columbia. 

Heartland Generation operates a diverse range of power generation assets, including 507 MW of cogeneration, 387 MW of contracted and merchant peaking generation, 950 MW of gas-fired thermal generation, along with transmission capacity and a development pipeline featuring the 400 MW Battle River Carbon Hub. This acquisition bolsters TransAlta's Alberta portfolio by adding flexible and complementary assets. TransAlta aims to strategically position itself in response to Alberta's changing electricity landscape, anticipating a significant rise in renewables and other large baseload generation in the coming years. 

The transaction is strategically attractive to TransAlta and provides the following benefits:

• Expands Flexible Generation Capabilities;
• Enhances TransAlta's Competitive Positioning;
• Aligned with TransAlta's Alberta Strategy;
• Attractive Transaction Metrics;
• Highly Contracted Cash Flow;
• Near-term Synergies;
• Retains Ownership Presence in Alberta and Builds On Regional Expertise;
• Battle River Carbon Hub Project; and
• Maintains Leadership in Decarbonization.