TransAlta to Acquire 310 MW Contracted Ontario Gas Portfolio for $95 million
November 25, 2025
- Purchase price of $95 million, or approximately $306 per kilowatt (kW)
- Immediately accretive to free cash flow and cash yield upon closing with approximately 68% of the portfolio’s gross margin contracted to 2031; attractive recontracting fundamentals longer-term
- TransAlta’s Energy Marketing and Trading team to deliver merchant upside and synergies
- Augments and further diversifies TransAlta’s contracted portfolio and enhances competitive position in our core market of Ontario, increasing our footprint by 310 megawatts (MW) to 1,300 MW
TransAlta Corporation is pleased to announce that it has entered into a definitive share purchase agreement with an affiliate of Hut 8 Corp. and Macquarie Equipment Finance Ltd., the parent of Far North Power Corporation, pursuant to which TransAlta will acquire Far North and its entire business operations in Ontario.
Far North owns and operates generation assets consisting of four natural gas-fired generation facilities totalling 310 MW. The purchase price for the acquisition is $95 million, subject to working capital and other adjustments. The Company will finance the transaction using cash on hand and draws on its credit facilities.
“With this acquisition, our position in Ontario increases through contracted and complementary assets. As electrification and population growth continues, the market will meaningfully rely on existing firm, dispatchable generation for grid reliability. Beyond the contract period these assets are attractively positioned for re-contracting opportunities as well as with optionality given the 167 acres of co-located land. The transaction adds to our reliable and increasingly diversified portfolio, and we see long term value in these assets,” said John Kousinioris, President and Chief Executive Officer of TransAlta.
“This acquisition is immediately accretive to cash flow and demonstrates progress towards our priority of pursuing strategic M&A,” said Joel Hunter, Executive Vice President, Finance and Chief Financial Officer. “We expect to seamlessly integrate these assets while remaining focused on advancing our Alberta data centre and Centralia opportunities.”
The assets are expected to add approximately $30 million of average Adjusted EBITDA1 per year, from the 120 MW Iroquois Falls, 110 MW Kingston, 40 MW North Bay and 40 MW Kapuskasing facilities. The Agreement is subject to customary closing conditions, including receipt of regulatory approvals. The transaction is expected to close by early first quarter of 2026.
1 Adjusted EBITDA is non-IFRS measure. It does not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other entities. Adjusted EBITDA is calculated by adjusting Earnings before income taxes for certain items that may not be reflective of ongoing business performance. The average Adjusted EBITDA is based on the expected aggregate Adjusted EBITDA for the period from 2027 – 2031 divided by the number of years in such period. Please refer to the “Non-IFRS and Supplementary Financial Measures” section of our management’s discussion and analysis for the three and nine months ended September 30, 2025 (“MD&A”) for more information about the non-IFRS measures we use, including a reconciliation of Adjusted EBITDA to Earnings before income tax, the most directly comparable IFRS measure, which section of the MD&A is incorporated by reference herein. The MD&A can be found on SEDAR+ (www.sedarplus.ca) under TransAlta’s profile.
