Overview
- TransAlta signed a definitive agreement to acquire Far North Power Corp., which owns four Ontario gas plants totaling 310 MW.
- The portfolio comprises the 120 MW Iroquois Falls, 110 MW Kingston, 40 MW North Bay and 40 MW Kapuskasing facilities.
- Five-year capacity contracts won in the IESO MT2 auction underpin the assets, with roughly 68% of gross margin contracted to 2031.
- TransAlta projects about $30 million in average Adjusted EBITDA per year from 2027 to 2031 and expects the deal to be accretive to free cash flow upon closing.
- Funding will come from cash on hand and credit facilities, increasing TransAlta’s Ontario footprint to about 1,300 MW, while Hut 8 redeploys proceeds into large-scale digital infrastructure development.