Canadian power generator TransAlta has reached an agreement with Kineticor Holdings to purchase two 230MW Siemens F class gas turbines and associated equipment for a fee of $84m.
The Canadian company will be integrating the new gas turbines into the existing steam turbine at Sundance Unit 5, to repower and transform the unit into an efficient combined-cycle unit.
TransAlta president and CEO Dawn Farrell said: “The acquisition advances our repowering strategy in Alberta and increases our contractedness which will help de-risk our business as we move into a fully merchant Alberta market starting in 2021.
Once operational in 2023, the Sundance 5 combined-cycle unit will have the capacity to generate nearly 730MW of power and is expected to cost approximately $760m. The integration of two gas turbines into one steam turbine is expected to provide TransAlta more operational flexibility.
As per the agreement, TransAlta will also secure a long term non-unit contingent power purchase agreement in late 2023 with Shell Energy North America. The transaction with Kineticor is part of the company’s strategy to become a low cost, low emissions power generation company.
