Alberta — Suncor is selling $730 million of wind and solar assets to Canadian Utilities.
The deal means Suncor is essentially out of wind and solar, leaving it with only one decommissioned facility in Saskatchewan.
“Divesting of these wind and solar assets further streamlines our portfolio so that we can concentrate our efforts on our core business,” said Kris Smith, Suncor Interim President and Chief Executive Officer. “Our ESG efforts will continue to advance in other areas that are complementary to our core business such as replacing coke-fired boilers at Base Plant with lower emission cogeneration units, investing in hydrogen and low-carbon fuels and accelerating commercial-scale deployment of carbon capture technology.”
The assets changing hands are in Ontario and Alberta, with 252 megawatts of operating capacity, plus more than 1,500 from projects in development.
The sale is the latest in a series of steps by Suncor to streamline and focus on core operations, something activist investor Elliott Investment Management has been pushing for.
The transaction is expected to close in the first quarter of 2023 and is subject to customary closing conditions, including applicable third-party regulatory reviews and approvals.
The purchase price is subject to closing adjustments typical of transactions of this nature.