Suncor sells wind, solar for C$730mn
SUMMARY
Oil sands major will now focus on hydrogen, CCS as it progresses to net zero by 2050 [Image: Suncor]
By Dale LunanPOSTED IN:
Canadian oil sands major Suncor said October 5 it had sold its wind and solar assets for C$730mn (US$536mn) to Canadian Utilities Limited (CUL), part of the ATCO Group of companies, completing a process it launched in April.
“Divesting of these wind and solar assets further streamlines our portfolio so that we can concentrate our efforts on our core business,” interim CEO Kris Smith said.
Its efforts going forward will focus on other areas complementary to its core business, including replacing coke-fired boilers at its base oil sands plant near Fort McMurray with lower emission cogeneration units, investing in hydrogen and low-carbon fuels and accelerating commercial scale deployment of carbon capture and storage technologies.
The sale includes Suncor’s interests in the 30 MW Magrath Wind Farm near Lethbridge, the 30 MW Chin Chute wind farm south of Taber and the 40 MW Adelaide wind farm in Ontario. Suncor is a partner with Enbridge and global green energy developer Acciona at Magrath and Chin Chute and with the Aamjiwnaang First Nation at Adelaide.
Also included is Suncor’s 202 MW Forty Mile wind farm near Bow Island in southern Alberta, expected to be operational by the end of this year, and a pipeline of various development stage renewable power projects estimated at some 1,500 MW.
“Through this investment, we instantly add a new wind power position to our growing renewables portfolio, we bring additional high-quality wind and solar development opportunities into our growth pipeline, and we expand our renewables driven earnings base,” CUL executive vice president Bob Myles said.
The sale is expected to close in Q1 2023, subject to customary closing conditions, including regulatory approvals. The purchase price is also subject to closing adjustments.
