TransAlta Stock Price, News & Analysis

TransAlta Corporation (TAC) has successfully completed its first coal-to-gas boiler conversion at Sundance Unit 6, a major step in reducing CO₂ emissions by half. The $85 million investment, which includes $35 million for the conversion, is expected to generate local economic benefits, including nearly 700 jobs during the process. By January 1, 2022, TransAlta's Alberta thermal fleet will operate entirely on natural gas, enhancing asset longevity and aligning with the company's goal of reducing emissions by over 70% from 2005 levels by the end of 2022.

TransAlta Renewables has entered agreements to acquire three renewable energy assets from TransAlta for $439 million. The acquisition includes a 100% interest in the Windrise wind project in Alberta, a 49% economic interest in the Skookumchuck wind facility in Washington State, and a 100% economic interest in the Ada cogeneration facility in Michigan. This acquisition is expected to enhance the company's position in the renewables sector and contribute approximately $45 million in annual EBITDA, extending the average contracted life of its fleet from 10 to 12 years.

TransAlta Corporation (NYSE: TAC) announced a 6% increase in its common share dividend to $0.045 per share for Q1 2021, an annualized dividend of $0.18. This increase marks a positive trend for shareholders, reflecting confidence in cash flows and strategy. The company also entered into agreements for the acquisition of renewable energy assets by TransAlta Renewables, totaling $439 million, with a 19-year average contract life. The dividend payment is set for April 1, 2021, for shareholders recorded by March 1, 2021.

TransAlta Corporation (TSX: TA, NYSE: TAC) has received an A- score from CDP, recognizing its leadership in climate change management. This accolade reflects TransAlta's long-standing commitment to sustainability, particularly in hydro and wind energy. The Canadian government's new climate plan, which includes increasing the carbon price to $170 per tonne by 2030, is expected to have limited impact on TransAlta's economic performance due to its clean energy initiatives. The company also plans to advance its Sundance 5 project and diversify its renewable portfolio, including a new wind project.

TransAlta Corporation (NYSE: TAC) has acquired a 30% equity interest in EMG International LLC, enhancing its sustainability service offerings. This partnership aims to leverage synergies to meet growing customer ESG goals within the wastewater treatment sector. TransAlta anticipates this investment will generate US$2 to US$3 million in annual EBITDA, with potential growth to US$8 to US$10 million. EMG's proprietary technology converts organic waste into renewable energy, aligning with TransAlta's clean energy transition objectives.

TransAlta announced the completion of its 49% equity investment in the Skookumchuck Wind Project, a 136.8 MW wind farm in Washington, developed in partnership with Southern Power Company. The project operates 38 Vestas V136 turbines and commenced commercial operations on November 7, 2020, backed by a 20-year power purchase agreement with Puget Sound Energy.

This investment aligns with TransAlta's Clean Energy Investment Plan and aims to fulfill its customers' ESG needs while reinforcing its presence in the Pacific Northwest market.

TransAlta Corporation reported a third quarter 2020 comparable EBITDA of $256 million, up 3% from $249 million in Q3 2019. Free cash flow was $106 million or $0.39 per share, down from $114 million in the previous year. The company plans to cease all coal mining operations at Highvale Mine by December 31, 2021, aligning with its climate leadership strategy. Notable financing achievements include a $800 million secured note offering and a $400 million investment from Brookfield. Liquidity stands at approximately $2.7 billion.

The Board of Directors of TransAlta Corporation (TAC) declared a quarterly dividend of $0.0425 per common share, payable on January 1, 2021. Shareholders recorded by December 1, 2020 will receive this dividend. Additionally, dividends for Cumulative Redeemable Rate Reset First Preferred Shares were also announced, with rates ranging from 2.179% to 5.194%, payable on December 31, 2020. All amounts are in Canadian dollars.

TransAlta Corporation (TAC) has successfully closed the second tranche of a strategic investment from Brookfield Asset Management, totaling $400 million. This follows Brookfield's total commitment of $750 million through exchangeable securities, which can be converted into equity in TransAlta's Alberta hydro assets. The funds are earmarked for advancing the company's coal-to-gas conversion, supporting growth initiatives, returning capital to shareholders, and funding general corporate purposes. TransAlta aims to enhance its position in renewable energy, especially in hydro and wind power.