TransAlta Corporation announced it is ready to launch the 300-megawatts project White Rock Wind; to be located in Caddo County, Oklahoma. The news comes as TransAlta has secured two long-term power purchase agreements for the 100% output of the project; allowing it to begin the construction phase.
Firstly, the contractor of the renewable electricity coming from the project is an outstanding new customer with an AA credit rating from S&P Global Ratings. As outlined above; contracting 100% of the energy production from White Rock Wind allows TransAlta to begin construction of the 300MW facility.
Moreover, the White Rock Wind Project will consist of 51 Vestas turbines. Construction will begin in late 2022, and commercial operation will come in the second half of 2023.
In addition, TransAlta will construct, operate and own the facility. According to the statement, the capital for the construction of the project will be around US$460 million to US$470 million. The funds would come from existing liquidity and tax equity.
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TransAlta has 90% of the costs of the project already covered
In fact, over 90% of the project’s costs are already covered. TransAlta reached fixed price turbine supply agreements with Vestas and executed fixed-price engineering, procurement, and construction agreements with M.A. Mortenson Company.
Furthermore, the project will generate total annual earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately US$44 million, including production tax credits.
John Kousinioris, President and Chief Executive Officer of TransAlta, said about the matter. “TransAlta is thrilled to make our White Rock Wind Project a reality. The delivery of low-cost, reliable, and clean energy from White Rock supports our customer’s sustainability goals and provides an excellent opportunity to expand our wind fleet in the United States.”
Finally, he commented. “This project is another step towards executing our recently announced Clean Electricity Growth Plan of delivering 2 GW of capacity by 2025. White Rock East and West will collectively be the largest wind project we have undertaken and are excellent additions to our Company’s expanding wind portfolio.”
