TransAlta Corp. plans to convert its existing Alberta coal assets to natural gas under an approximately C$2 billion clean energy investment plan.
The company plans to convert three existing thermal units to gas in 2020 and 2021 and two units to combined-cycle gas units in the late 2023 to late 2024 period. The conversion is intended to generate attractive returns by leveraging existing infrastructure, extend the life and cash flows of Alberta thermal assets and reduce air emissions and costs, TransAlta said in a Sept. 16 news release.
The company's clean energy investment plan also includes four contracted wind projects in the U.S. and Alberta that are currently under construction. The projects represent approximately C$800 million in costs.
TransAlta plans to fund its clean energy investment plan from cash raised earlier through a strategic investment transaction with a Brookfield Renewable Partners LP affiliate, cash generated from operations and through TransAlta Renewables Inc.
The company also remains committed to returning C$250 million to shareholders over the next three years through shares repurchases and lowering its corporate level debt by C$400 million in 2020.
Additionally, TransAlta said it adopted a dividend policy of returning between 10% and 15% of its deconsolidated funds from operations to common shareholders and a debt/EBITDA target of 3.0x or less.
