Kineticor Resource Corp., in partnership with OPTrust, has closed the acquisition of a partially constructed 690 MW cogeneration plant located near Peace River, AB from Shell Canada. The acquisition also includes an agreement between Kineticor and Shell for the future development of the plant.
Kineticor intends to repurpose this facility as a standalone power plant called the Three Creeks Power Plant.
“The Alberta power market is going through significant changes over the next decade and this acquisition, coupled with the OPTrust capital commitment, significantly strengthens Kineticor’s ability to capitalize on the opportunities that will be presented in this changing marketplace,” said Andrew Plaunt, Kineticor’s Chief Executive Officer.
In conjunction with closing this acquisition, OPTrust has committed a $125 million investment in Kineticor which will support current and future growth initiatives.
“We are delighted with the Three Creeks Power Plant acquisition and look forward to pursuing more growth opportunities within the sector in partnership with Kineticor,” said Gavin Ingram, Global Head of Infrastructure at OPTrust.
Founded in March 2013, Kineticor is a Calgary, Alberta based independent power producer focused on gas-fired generation throughout Canada. Kineticor partners with companies to optimize energy resources, creating economic and environmental benefits.
In August 2105, Kineticor closed an $80 million equity financing agreement with Harbert Power Fund V, LLC, managed by Harbert Power, LLC, a part of Harbert Management Corporation based in Birmingham, Alabama.
photo credit: Kineticor