Highlights
- TransAlta has established targets to deliver 2 GW of
incremental renewables capacity with a targeted investment of
$3 billion by 2025
- TransAlta will accelerate its growth with a focus on
customer-centred renewables and storage through the execution of
its 3 GW development pipeline
- TransAlta will suspend the Sundance Unit 5 repowering
- TransAlta will retire Keephills Unit 1 effective December 31, 2021, and retire Sundance Unit 4
effective April 1, 2022
- TransAlta's Board of Directors has approved an 11 per cent
dividend increase on its common shares
- TransAlta will be completely off-coal by the end of 2025 and
will realize a 70% reduction on carbon emissions by 2030 against a
2005 baseline
CALGARY, AB, Sept. 28, 2021 /PRNewswire/ - TransAlta
Corporation ("TransAlta" or the "Company") (TSX: TA) (NYSE: TAC) 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:
- delivering 2 GW of incremental renewables capacity with a
targeted investment of $3 billion by
the end of 2025. Already this year the company has announced 300 MW
of new build projects and asset acquisitions and has 500 MW in
advanced-stage development;
- accelerating growth into customer-centred renewables and
storage through the development of its 3 GW development
pipeline;
- expanding the Company's development pipeline to 5 GW by 2025 to
enable a two-fold increase in its renewables fleet by 2030;
- realizing targeted diversification and value creation by
focusing on expanding our platform in each of our core geographies
(Canada, United States and Australia); and
- by the end of 2025, defining the next generation of power
solutions and technologies and potential for parallel investments
in new complementary sectors.
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.
Investor Day
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 Virtual Investor Day Webcast Registration Link:
https://transaltainvestorday.can.chime.live/app/app.html
Event details:
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.
Forward-Looking Statements
This news release contains "forward-looking
information", within the meaning of applicable Canadian securities
laws, and "forward-looking statements", within the meaning of
applicable United States
securities laws, including the United States Private Securities
Litigation Reform Act of 1995 (collectively referred to herein as
"forward-looking statements"). Forward-looking statements are
predictive in nature, depend upon or refer to future events or
conditions, or include words such as "expects", "anticipates",
"plans", "predicts", "believes", "estimates", "intends", "targets",
"projects", "forecasts" or negative versions thereof and other
similar expressions or future or conditional verbs such as "may",
"will", "should", "would" and "could". These statements may
include, without limitation, statements regarding: TransAlta's
ability to maintain and execute its strategy, including
forecasted growth capital expenditures; expanding the Company's
development pipeline; realizing diversification and value creation
in Canada, the U.S. and
Australia; the retirement of
Sundance Unit 4 and Keephills Unit 1; and the suspension of the
Sundance 5 repowering.
These forward-looking statements are based upon certain
material factors or assumptions that were applied in developing the
forward-looking statements, including the design specifications of
development projects, the provisions of contracts to which
TransAlta or a subsidiary is a party, management's current plans
and its perception of historical trends, current conditions and
expected future developments, as well as other factors that are
believed to be appropriate in the circumstances. Some of the
factors, many of which are beyond TransAlta's control and the
effects of which can be difficult to predict, but may cause actual
results to differ materially from those contemplated or implied by
forward-looking statements include, but are not limited to: more
restrictive directives of government and public health authorities;
reduced labour availability and ability to continue to staff our
operations and facilities; disruptions to our supply chains,
including our ability to secure necessary equipment and to obtain
regulatory approvals on the expected timelines, or at all; force
majeure claims; curtailments reducing merchant production; our
ability to maintain our credit ratings; restricted access to
capital and increased borrowing costs; increased costs, including
those resulting from our efforts to mitigate the impact of
COVID-19; regulatory and environmental processes delays; adverse
impacts on our information technology systems and our internal
control systems; political uncertainty; disruptions in the
transmission and distribution of electricity; the effects of
weather, natural disasters and other climate-related risks; results
and exposures of our Energy Marketing segment, including deviations
from historical variances; disruptions to our operations, including
unplanned outages, equipment failure and our ability to carry out
repairs in a cost-effective or timely manner; and general
competition and industry risks. We caution that the foregoing list
of important factors that may affect future results is not
exhaustive. When relying on our forward-looking statements,
investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. Except as
required by law, we undertake no obligation to publicly update or
revise any forward-looking statements or information in this news
release, whether as a result of new information, future events or
otherwise. Past performance is not indicative nor a guarantee of
future results. The foregoing risk factors, among others, are
described in further detail in the Corporation's Management's
Discussion and Analysis and Annual Information Form for the year
ended December 31, 2020, which are
available on SEDAR at
www.sedar.com and with the U.S. Securities
and Exchange Commission at www.sec.gov. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which reflect the Corporation's expectations only as of
the date of this news release. The purpose of the financial
outlooks contained in this news release are to give the reader
information about management's current expectations and plans and
readers are cautioned that such information may not be appropriate
for other purposes and is given as of the date of this news
release. The Corporation disclaims any intention or obligation to
update or revise these forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
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SOURCE TransAlta Corporation