Kineticor Resource Corp has partnered with Canadian pension fund OPTrust in the acquisition of a partially-constructed 690 megawatt cogeneration plant located near Peace River, Alberta. No financial terms were disclosed. Kineticor, which bought the plant from Shell Canada, will repurpose it as a standalone facility called the Three Creeks Power Plant. It was also announced that OPTrust will invest $125 million in Kineticor, a Calgary-based power producer focused on gas-fired generation in Canada. The proceeds will support the company’s current and future growth initiatives.
Kineticor Acquires Power Plant and Secures Investment from OPTrust
CALGARY, Feb. 17, 2017 /CNW/ – Kineticor Resource Corp. (“Kineticor”), in partnership with OPTrust, has closed the acquisition of a partially constructed 690 MW cogeneration plant located near Peace River, AB from Shell Canada (“Shell”). Kineticor intends to repurpose this facility as a standalone power plant called the Three Creeks Power Plant. The acquisition also includes an agreement between Kineticor and Shell for the future development of the plant.
“The Alberta power market is going through significant changes over the next decade and this acquisition, coupled with the OPTrust capital commitment, significantly strengthens Kineticor’s ability to capitalize on the opportunities that will be presented in this changing marketplace,” said Andrew Plaunt, Kineticor’s Chief Executive Officer.
In conjunction with closing this acquisition, OPTrust has committed a $125 million investment in Kineticor which will support current and future growth initiatives.
“We are delighted with the Three Creeks Power Plant acquisition and look forward to pursuing more growth opportunities within the sector in partnership with Kineticor,” said Gavin Ingram, Global Head of Infrastructure at OPTrust.
About Kineticor Resource Corp.
Kineticor is an Alberta-based independent power producer focused on gas-fired generation throughout Canada. Kineticor partners with companies to optimize energy resources, creating economic and environmental benefits.
With net assets of $18.4 billion, OPTrust invests and manages one of Canada’s largest pension funds and administers the OPSEU Pension Plan, a defined benefit plan with almost 89,000 members and retirees.
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Photo courtesy of Kineticor Resource Corp