Energy
28 August 2020
Macquarie Capital, in partnership with Ontario-based pension fund OPTrust, has helped Canadian developer Kineticor Resource Corp. secure and close financing on the $C1.5 billion Cascade Power Project, a 900-megawatt combined cycle natural gas-fired generating facility in Alberta. Macquarie Capital acted as exclusive financial advisor and debt arranger on the partnership, securing non-recourse project financing.
The Cascade Power Project (“Cascade”) will lead the transition to a lower carbon intensive power grid in Alberta by supporting the province’s transition off coal-fired power, generating low emissions electricity that is expected to supply more than 8 percent of the province’s average demand. Cascade is strategically situated in proximity to significant gas production as well as the NGTL system and high-voltage electrical transmission lines, an important competitive advantage for the facility.
“Cascade was initially conceived by a group of individuals looking to make a difference as Alberta begins to transition away from coal-fired power generation in the province”, said Andrew Plaunt, CEO of Kineticor. “Today represents the culmination of several years of close collaboration with our development partners at OPTrust and Macquarie, along with consultants, engineers, vendors, gas suppliers and local stakeholders.”
With Alberta contributing over 50 percent of Canada’s GHG emissions from electricity generation, Cascade is expected to result in one of the largest emissions reduction opportunities in the country’s electricity sector. Cascade will strongly benefit the local community with over 3 million manhours of labor required for construction, creating approximately 600 jobs during peak construction as well as 25 long-term jobs during operation. Construction will start immediately with commercial operations commencing in 2023.
Andrew Plaunt, CEO of Kineticor
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