Kineticor Resource Corp has acquired a 32 megawatt cogeneration facility from Tidewater Midstream and Infrastructure Ltd, a Calgary-based provider of midstream energy solutions.
Kineticor, a Calgary-based power developer focused on thermal generation, paid $85 million in cash for the facility, which is under construction.
Kineticor agreed to supply power and heat to Tidewater’s Pipestone Gas Plant once construction is complete.
Kineticor is backed by Canadian pension fund manager OPTrust. OPTrust invested $125 million in the business in 2017.
Tidewater is a portfolio company of Canadian private equity firm Birch Hill Equity Partners. Birch Hill increased its stake last year as a result of asset purchases from AltaGas Ltd.
Kineticor announces acquisition of a 32MW cogeneration facility providing power and heat to Tidewater’s Pipestone Gas Plant
CALGARY, March 25, 2019 /CNW/ – Kineticor Resource Corp. (“Kineticor”) is pleased to announce that it has entered into an asset purchase and sale agreement with Tidewater Midstream and Infrastructure Ltd. (“Tidewater”) to acquire the 32MW cogeneration facility currently under construction which will provide power and heat to the Pipestone Gas Plant. Under the terms of the sale, Kineticor issued a cash payment of $85 million in exchange for ownership of the cogeneration facility. In conjunction with the acquisition, Kineticor and Tidewater have entered into a long-term energy services agreement whereby Kineticor will supply power and heat to Tidewater’s Pipestone Gas Plant once construction is complete.
Tidewater’s Pipestone Gas Plant will rely on Kineticor’s cogeneration facility to be the sole power provider for the gas plant, eliminating the reliance on the Alberta power grid and ensuring an economical power source.
“We are excited to be partnering with Tidewater. As the Alberta power market continues to undergo significant change, this opportunity further confirms that onsite cogeneration provides an attractive alternative that is reliable, sustainable, and cost-effective” Andrew Plaunt, CEO.
Kineticor’s focus on partnering with great companies and developing top-tier power assets throughout Alberta will help to support the transition off the use of coal for electricity in the province.
About Kineticor Resource Corp.
Kineticor, in partnership with OPTrust, is developing a pipeline of innovative power generation initiatives throughout Canada. Through the development of strong relationships with major power consumers and gas producers, Kineticor is able to provide solutions that are both economically and environmentally attractive.
With net assets of over $20 billion, OPTrust invests and manages one of Canada’s largest pension funds and administers the OPSEU Pension Plan, a defined benefit plan with over 92,000 members and retirees.
OPTrust is a global investor in a broad range of asset classes including Canadian and foreign equities, fixed income, real estate, infrastructure and private markets, and has a team of highly experienced investment professionals located in Toronto, London and Sydney. As a pension management organization, OPTrust’s mission is to pay pensions today, preserve pensions for tomorrow.
For further information: Media Contact: Michael Funk, Michael.firstname.lastname@example.org, 403) 471-0835