All development and construction or acquisition of approved projects will be funded on a 50-50 basis.
TransAlta Corp. (TSX: T.TA, Stock Forum) said it has joined a new strategic partnership with American billionaire Warren Buffett’s MidAmerican Energy Holdings Co. through which the two companies will work together to develop, build and operate new natural gas-fueled electricity generation projects in Canada.
According to the TransAlta press release, this partnership builds on an existing successful relationship. The extensive power development and operating experience of both companies, combined with TransAlta's deep knowledge of the Canadian markets and MidAmerican's financial strength, is expected to accelerate gas-fueled power development for both partners.
"Studies are showing that more than $200 billion worth of new investment in power generation is needed in Canada over the next 20 years. MidAmerican is a strong partner to enable us to capture a sizeable share of that market opportunity, and this project will build off our already existing business relationship, which dates back to 2001,” said Dawn Farrell, TransAlta president and CEO.
The agreement encompasses all new natural gas-fueled generation opportunities considered by either TransAlta or MidAmerican in Canada, including TransAlta's proposed Sundance 7 project, an up to 800-megawatt project based in Alberta, Canada.
All development and construction or acquisition of approved projects will be funded on a 50-50 basis, and TransAlta will be responsible for construction management, operation and maintenance of projects that proceed.
TransAlta is a power generation and wholesale marketing company with a focus to efficiently operate geothermal, wind, hydro, natural gas and coal facilities.
MidAmerican Energy Holdings Company, based in Des Moines, Iowa, is a global provider of energy services.
On Friday, TransAlta’s stock was up 3.3% and was trading at $15.72 a share. The company has a market cap of $3.9 billion, based on 251.1 million shares outstanding. The 52-week high and low was $22.89 and $13.96 respectively.