Pembina & Kineticor Announce Joint Venture for the Greenlight Electricity & Data Centre Complex

Rhea-AI Summary

Pembina Pipeline (NYSE: PBA) has acquired a 50% stake in Greenlight Electricity Centre Partnership, partnering with Kineticor Holdings LP #3. The joint venture is developing the Greenlight Electricity Centre (GLEC), a proposed multi-phased gas-fired power facility with up to 1,800 MW capacity and carbon capture capabilities, alongside an 1,800 MW data centre complex in Alberta's Industrial Heartland.

The project, managed by Kineticor, will be developed in 450 MW modular phases to match market demand. Currently in Stage 3 of the AESO interconnection process, GLEC targets grid interconnection by early 2027. The facility can either supply power to co-located data centres or feed directly into Alberta's power grid.

This development aligns with Alberta's goal to attract $100 billion in data centre investments by 2030. The strategic location offers access to transmission lines, utility infrastructure, carbon sequestration, and fiber connectivity.

Positive

• 50% stake acquisition in large-scale power generation project
• Potential revenue from 1,800 MW power generation capacity
• Strategic location near existing infrastructure reduces development costs
• Opportunity to leverage Alliance Pipeline for natural gas supply
• Project aligned with growing data centre market demand

Negative

• Significant capital investment required for development
• Project success dependent on securing data centre customers
• Grid interconnection not expected until 2027
• Competition in growing data centre power market

Insights

Financial Analyst

Pembina's 50% acquisition in Greenlight LP marks a strategic diversification into power generation specifically targeting the high-growth data center market. This represents a natural extension of Pembina's midstream business, creating an integrated gas-to-power value chain by potentially utilizing its Alliance Pipeline for gas supply while positioning for future carbon management through its Alberta Carbon Grid initiative.

The phased development approach (450 MW modules up to 1,800 MW) is financially prudent, allowing Pembina to match capital deployment with secured customer commitments and market demand. This project positions Pembina to capture value from two high-demand growth markets: power generation in an increasingly supply-constrained Alberta electricity market, and the rapidly expanding data center industry with its substantial power requirements.

For investors, this represents potential for stable, contracted cash flows through long-term power purchase agreements with data centers, complementing Pembina's existing fee-based midstream business model. The project's advanced regulatory status (Stage 3 AESO interconnection) reduces development risk, with targeted grid interconnection by early 2027.

While financial terms and capital requirements weren't disclosed, this partnership leverages complementary strengths: Pembina's midstream expertise and balance sheet combined with Kineticor's power development capabilities (demonstrated through their successful 900 MW Cascade Power Plant). This positions Pembina to participate in Alberta's ambitious $100 billion data center investment target while maintaining its infrastructure-focused business model.

CALGARY, AB, Feb. 27, 2025 /PRNewswire/ - Kineticor Asset Management LP ("Kineticor") is pleased to announce that Pembina Pipeline Corporation ("Pembina") (TSX: PPL) (NYSE: PBA) has entered into agreements for a 50 percent interest in the Greenlight Electricity Centre Limited Partnership ("Greenlight LP" or "Greenlight"), a special-purpose limited partnership with Kineticor Holdings LP #3, a portfolio company of OPTrust.

Greenlight LP is developing the Greenlight Electricity Centre ("GLEC" or "Project") which is a proposed multi-phased gas-fired combined cycle power generation facility of up to 1,800 MW with carbon capture optionality coupled with significant land holdings that can accommodate a co-located 1,800 MW data centre complex. The Project would be constructed on land already zoned for heavy industrial use and strategically located near transmission lines, utility infrastructure, carbon sequestration, and fiber in Alberta's Industrial Heartland.

The GLEC is managed by Kineticor, which successfully developed, constructed, and currently operates the 900 MW Cascade Power Plant near Edson, Alberta.

"We are excited to be partnering with Kineticor and for the opportunity to further extend our value chain to provide power to a promising new Alberta-based data centre industry," said Stu Taylor, Pembina's Senior Vice President & Corporate Development Officer. "In addition to our direct investment in Greenlight, Pembina is well positioned to leverage its existing and future asset base to further support the project. The proximity of our Alliance Pipeline offers a potential opportunity to provide natural gas supply to the GLEC, and the potential future development of the Alberta Carbon Grid may provide a future emissions reduction solution."

 "We are thrilled to partner with Pembina on this transformative project," said Andrew Plaunt, CEO of Kineticor. "Alberta's Industrial Heartland is one of the best locations in the province to facilitate a project of this magnitude given the large land base, robust grid infrastructure, and potential for decarbonization solutions over time.  By partnering with Pembina, we can leverage and combine our individual strengths and experience in major infrastructure projects to bring all the pieces together to develop a world class facility."

Power Generation to Support Alberta's Growing Data Centre Demand

The GLEC is one of the largest and most advanced baseload power developments in Alberta.  Designed to meet the increasing electricity needs driven by the province's growing data centre industry, the facility will be developed in modular phases of approximately 450 MW each to scale with market demand, up to a maximum initial nameplate design of 1,800 MW. The power generation facility is currently in Stage 3 of the Alberta Electric System Operator ("AESO") interconnection process, and is progressing through permitting, design, and contracting. GLEC has the optionality to supply power to a co-located data centre or feed directly into Alberta's power grid to support data centre loads across the province.

Data Centre Development and Power Offtake Agreements

Greenlight is well progressed on an 1,800 MW load application with the AESO on the lands surrounding the GLEC and is targeting grid interconnection in early 2027. Greenlight is actively engaging with numerous customers regarding locating their data centres on GLEC lands and/or procuring long-term power offtake from the Project. GLEC offers prospective customers speed to market and ample ability to scale their growth with reliable and cost-effective power supply. Located near Edmonton, AB which has a highly skilled local labour force, GLEC is an ideal site to execute a project of this scale, all while driving investment and innovation in Alberta.

Supporting Alberta's Vision for a Thriving Data Centre Industry

The Government of Alberta has set an ambitious target of attracting $100 billion in data centre investments by 2030, encouraging developers to "bring their own power." Pembina and Kineticor are committed to supporting this vision by delivering reliable and cost-effective power solutions at scale to data centres looking to locate in the province.

About Kineticor Asset Management
Kineticor Asset Management is a leading developer, manager, and operator of power generation facilities within Alberta. With a portfolio exceeding 2,700 MW in various stages of development & operations, Kineticor is committed to efficiently developing innovative power solutions that support Canada's evolving power needs. For more information, please visit www.kineticor.ca

About Pembina 
Pembina Pipeline Corporation is a leading energy transportation and midstream service provider that has served North America's energy industry for more than 70 years. Pembina owns an extensive network of strategically-located assets including hydrocarbon liquids and natural gas pipelines, gas gathering and processing facilities, oil and natural gas liquids infrastructure and logistics services, and an export terminals business. Through our integrated value chain, we seek to provide safe and reliable energy solutions that connect producers and consumers across the world, support a more sustainable future and benefit our customers, investors, employees and communities. For more information, please visit www.pembina.com

About OPTrust
With net assets of $25 billion, OPTrust invests and manages one of Canada's largest pension funds on behalf of over 111,000 members. OPTrust is a global investor in a broad range of asset classes including Canadian and foreign equities, fixed income, real estate, infrastructure and private markets, and has a team of highly experienced investment professionals located in Toronto, London, and Sydney. For more information, please visit www.optrust.com

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SOURCE Kineticor Asset Management LP

FAQ

What is the capacity of Pembina's (PBA) new Greenlight Electricity Centre project?

The Greenlight Electricity Centre will have up to 1,800 MW power generation capacity and can accommodate a co-located 1,800 MW data centre complex.

When will Pembina's (PBA) Greenlight Electricity Centre begin grid interconnection?

The project is targeting grid interconnection in early 2027.

How will Pembina (PBA) develop the Greenlight Electricity Centre phases?

The facility will be developed in modular phases of approximately 450 MW each, scaling with market demand up to 1,800 MW.

What is the ownership structure of Pembina's (PBA) Greenlight project?

Pembina acquired a 50% stake in the project, partnering with Kineticor Holdings LP #3, a portfolio company of OPTrust.

How does the Greenlight project align with Alberta's data centre goals?

The project supports Alberta's target of attracting $100 billion in data centre investments by 2030 by providing reliable power solutions.