BUSINESS

TransAlta Renewables garners $200M investment from Alberta fund manager

Lauren Krugel The Canadian Press
Published Monday, November 23, 2015 7:28PM EST

TransAlta Corp. CEO Dawn Farrell speaks during at the company's annual general meeting in Calgary on April 29, 2014. (Larry MacDougal / The Canadian Press)

Text:

CALGARY -- A day after the Alberta government unveiled its plan to tackle climate change, Alberta's pension fund manager is investing $200 million in green energy.

Alberta Investment Management Corp., which has $85 billion in assets under management, is investing $200 million in TransAlta Renewables, an affiliate of power producer TransAlta Corp. (TSX:TA).

"TransAlta has set forth a bold transition plan that will see it become one of North America's pre-eminent clean power companies," said AIMCo CEO Kevin Uebelein.

"TransAlta Renewables is an important part of that strategy. AIMCo is looking forward to a strong working relationship with TransAlta Renewables."

Once the deal closes, TransAlta Corp. will own 65 per cent of TransAlta Renewables and AIMCo will own eight per cent.

AIMCo invests globally on behalf of 27 pension, endowment and government funds in Alberta, but operates at arms-length from the provincial government.

Part of the Alberta government's sweeping climate change plan unveiled Sunday involves the phase-out of the province's coal-fired power by 2030.

TransAlta Corp. (TSX:TA) operates five coal-fired plants in Alberta.

Also Monday, TransAlta Renewables said it's investing a combined $540 million in a cogeneration plant, wind farm and hydro facility owned by TransAlta Corp. in Ontario and Quebec.