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IKEA Canada to buy 88-MW wind farm in Alberta

IKEA Canada LP reached agreements to acquire the 88-MW Wintering Hills wind farm in Alberta from its current owners for about C$119.6 million.

"This investment in renewable energy supports our business and moves us closer to our global ambition to produce more renewable energy than we consume by 2020," IKEA Canada sustainability manager Brendan Seale said in a Jan. 26 statement. Wintering Hills, which started operations in 2011, will generate 275 million kWh, an amount equivalent to the electricity consumption of 54 IKEA stores.

This is IKEA's second wind energy investment in Canada. The company also owns two wind facilities in the U.S.

Teck Resources Ltd. who was advised by Barclays Canada, will sell its 49% stake in the plant for C$58.6 million, while TransAlta Corp. subsidiary TA Wintering Hills LP will offer its 51% interest for C$61 million. The transactions are expected to close in the first quarter of 2017.

TransAlta said the sale will not materially impact its EBITDA, funds from operations or free cash flow guidance for 2017. The company plans to use sale proceeds for general corporate purposes, including to reduce debt and to fund future renewables growth.