TransAlta Corp., Canada's largest investor-owned utility company, and Des Moines-based MidAmerican Energy Holdings Co. have formed a strategic partnership to develop, build and operate new natural gas-fueled electricity generation projects in Canada, the companies announced Friday.
The partnership "builds on an existing successful relationship" that began in 2001, the companies said in a news release. The agreement provides MidAmerican Energy an entry into the Canadian electricity generation market, which is expected to grow by an additional $200 billion of new investment within the next 20 years.
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 800-megawatt project based in Alberta. 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.
"The creation of this partnership is a new and exciting development in our growth strategy and better positions the two companies to pursue significant growth opportunities in Canada," said Dawn Farrell, TransAlta president and CEO.
MidAmerican has an existing alliance with TransAlta, Canada's largest investor-owned renewable energy provider, through CE Generation, LLC, a limited company in which membership interests are equally owned by MidAmerican and TransAlta Investments USA Inc.
The new partnership "will bring two strong development teams together to deliver clean, highly efficient power to the region," MidAmerican CEO Greg Abel said.