Kineticor Resource Corp has closed financing on the C$1.5 billion Cascade Power Project, a 900-megawatt combined cycle, natural gas-fired generating facility to be located near Edson, Alberta. The development sponsors are Macquarie Capital and OPTrust, while the project sponsors are OPTrust, Axium Infrastructure and DIF Capital Partners. Kineticor, a Calgary-based clean power developer, said the facility will commence operations in 2023.
CALGARY, Alberta–(BUSINESS WIRE)–Alberta based developer Kineticor Resource Corp. (“Kineticor”) with joint development sponsors, Macquarie Capital (“Macquarie”) and Ontario-based pension fund OPTrust and project sponsors OPTrust, Axium Infrastructure and DIF Capital Partners announced today that they have successfully closed financing on the C$1.5 billion Cascade Power Project (“Cascade”). Macquarie acted as exclusive financial advisor and debt arranger to the partnership, securing non-recourse project financing.
Cascade is a 900-megawatt combined cycle natural gas-fired generating facility to be located near Edson, Alberta. Siemens Energy will provide two highly efficient single shaft SCC6-8000H power trains and provide maintenance support under a long-term service agreement. Cascade is strategically situated in proximity to significant gas production as well as the NGTL System and high voltage electrical transmission lines, an important competitive advantage for Cascade. Construction will start immediately with commercial operations commencing in 2023. Cascade is contracted and benefits from long-term gas netback agreements which provide cashflow stability and downside protection once the project is commissioned.
“Cascade was initially conceived by a group of individuals looking to make a difference as Alberta begins to transition away from coal-fired power generation in the province,” said Andrew Plaunt, CEO of Kineticor. “Today represents the culmination of several years of close collaboration with our development partners at OPTrust and Macquarie, along with consultants, engineers, vendors, gas suppliers and local stakeholders. With the financial support from Axium and DIF, along with our project financing partners, achieving this significant milestone of a successful financing will allow us to make Cascade a reality. We at Kineticor are extremely excited and proud to be a part of a project that will provide enormous benefits to the environment, the local economy of Edson and Alberta.”
Cascade will lead the transition to a lower carbon intensive power grid in Alberta by supporting the province’s transition off coal-fired power, generating low emissions electricity that is expected to supply over 8 percent of the province’s average demand. With Alberta contributing over 50 percent of Canada’s greenhouse gas emissions from electricity generation, Cascade is expected to result in one of the largest emissions reduction opportunities in the country’s electricity sector.
BPC, a joint venture between affiliates of PCL Construction and Overland Contracting Canada, Inc., a Black & Veatch Company, will construct the facility under an Engineering, Procurement and Construction Services contract with Kineticor acting as construction and asset manager. Cascade will additionally benefit the local community with over 3 million work hours of labour required for construction, creating approximately 600 jobs during peak construction as well as 25 long-term jobs during operation.
Kineticor is a developer and manager of clean power projects across Canada with a focus on projects that have an environmental and economic advantage versus the current marketplace. Headquartered in Calgary, AB, Kineticor has numerous projects in various stages of development and operations. www.kineticor.ca
With net assets of almost $22 billion, OPTrust invests and manages one of Canada’s largest pension funds and administers the OPSEU Pension Plan (including OPTrust Select), a defined benefit plan with over 96,000 members. OPTrust was established to give plan members and the Government of Ontario an equal voice in the administration of the Plan and the investment of its assets through joint trusteeship. OPTrust is governed by a 10-member Board of Trustees, five of whom are appointed by OPSEU and five by the Government of Ontario. www.optrust.com
About Macquarie Capital
Macquarie Capital is the corporate advisory, capital markets and principal investment arm of Macquarie Group. Its capabilities encompass corporate advisory and a full spectrum of capital solutions, including capital raising services from equity, debt and private capital markets and principal investments from Macquarie’s balance sheet. Macquarie Capital has invested in and delivered over 22GW of power generation globally and its infrastructure projects currently under construction or development are worth over $25 billion. https://www.macquarie.com/au/en/about/company/macquarie-capital/look-beyond.html
About Axium Infrastructure Inc.
Axium Infrastructure (comprised of Axium Infrastructure Inc. and its affiliated entities) is an independent portfolio management firm dedicated to generating long-term investment returns through investing in core infrastructure assets. Axium Infrastructure had C$5.1 billion in assets under management as of June 30, 2020, as well as C$1.7 billion in co-investments. The firm benefits from the capabilities of a group of specialists with decades of experience acquiring, developing, financing, operating and managing infrastructure assets. Focus is placed on assets that are supported by robust market demand and under long-term contract with creditworthy counterparties. Since 2010, the firm has invested in a diversified portfolio of over 145 North American infrastructure assets. For further information, including information about other infrastructure assets the firm has invested in, please visit https://www.axiuminfra.com
About DIF Capital Partners
DIF Capital Partners is a leading global independent infrastructure fund manager, with €7.5 billion of assets under management across nine closed-end infrastructure funds and several co-investment vehicles. DIF Capital Partners invests in greenfield and operational infrastructure assets located primarily in Europe, the Americas and Australasia through two complementary strategies:
DIF Infrastructure funds target equity investments in projects with long-term contracted or regulated income streams including public-private partnerships (PPP/PFI/P3), concessions, utilities, and (renewable) energy projects.
DIF CIF funds target equity investments in small to mid-sized economic infrastructure assets in the telecom, energy and transportation sectors.
DIF has a team of over 145 professionals, based in nine offices located in Amsterdam (Schiphol), Frankfurt, London, Luxembourg, Madrid, Paris, Santiago, Sydney and Toronto. www.dif.eu