TransAlta Achieves Commercial Operation of 200 MW Horizon Hill Wind Facility, increasing its United States Renewables Fleet to over 1 GW
May 29, 2024
TransAlta Corporation announced that the 200 MW Horizon Hill Wind Project, located in Logan County, Oklahoma, has achieved commercial operation. The facility is fully contracted to Meta Platforms Inc., which is receiving both clean electricity and environmental attributes from the new facility.
“Since 2020, Meta has supported its global operations with 100 per cent wind and solar energy. As our footprint grows, it’s key that we find strong partners who can help us continue to meet that goal by bringing new renewable energy to the grid,” said Urvi Parekh, head of renewable energy at Meta. “We are excited to partner with TransAlta to help power our operations with clean electricity.”
“We are pleased to bring our 30th wind facility, Horizon Hill, into service. The completion of the facility also concludes the significant construction program we started in 2021 through which we have added 800 MW of contracted renewable electricity to our portfolio. With the completion of Horizon Hill, over 60 per cent of our fleet is now contracted on a megawatt basis,” said Mr. John Kousinioris, President and Chief Executive Officer of TransAlta. “Horizon Hill also brings our US renewables fleet to over one GW, another key milestone for TransAlta, and provides a clean energy solution to a leading corporate energy customer.”
On Feb. 22, 2024, the Company entered into a 10-year transfer agreement with an AA- rated customer for the sale of approximately 80 per cent of the expected production tax credits (“PTCs”) to be generated from Horizon Hill. The remaining PTCs are expected to be sold through spot transactions or contracted at a later date.
Horizon Hill Highlights
• Long-term contracted revenues with Meta who will receive 100 per cent of both renewable electricity and environmental attributes;
• Facility includes 34 Vestas V162 and V136 turbines, of which 33 have 119-metre towers and one has a 105-metre tower;
• 10-year transfer agreement for approximately 80 per cent of PTCs, which are subject to an annual inflation adjustment factor, with an AA- rated third-party customer, with opportunity to contract the remaining 20 per cent;
• Extends TransAlta’s weighted-average contract life of its renewables portfolio1 to over 12 years; and
• Estimated average annual adjusted EBITDA range between US$31 and US$33 million, including third-party sales of PTCs.
(1) The weighted-average remaining contract life does not include our merchant renewables assets. For power generated under long-term power purchase agreements (“PPAs”) and other long-term contracts, the weighted-average remaining contract life is based on long-term average gross installed capacity.
