Kineticor Resource Corp. (Kineticor) with joint development sponsors, Macquarie Capital (Macquarie) and OPTrust, along with project sponsors OPTrust, Axium Infrastructure, and DIF Capital Partners, have announced that they have successfully closed financing on the $1.5 billion Cascade Power Project (Cascade). Macquarie acted as exclusive financial advisor and debt arranger to the partnership, securing non-recourse project financing.
Cascade is a 900-megawatt combined cycle natural gas-fired generating facility to be located near Edson, Alberta. Siemens Energy will provide two single shaft SCC6-8000H power trains and provide maintenance support under a long-term service agreement. Cascade is strategically situated in proximity to significant gas production as well as the NGTL System and high voltage electrical transmission lines, an important competitive advantage for Cascade. Construction will start immediately with commercial operations commencing in 2023. Cascade is contracted and benefits from long-term gas netback agreements which provide cashflow stability and downside protection once the project is commissioned.
“Cascade was initially conceived by a group of individuals looking to make a difference as Alberta begins to transition away from coal-fired power generation in the province,” said Andrew Plaunt, CEO of Kineticor. “Today represents the culmination of several years of close collaboration with our development partners at OPTrust and Macquarie, along with consultants, engineers, vendors, gas suppliers and local stakeholders. With the financial support from Axium and DIF, along with our project financing partners, achieving this significant milestone of a successful financing will allow us to make Cascade a reality. We at Kineticor are extremely excited and proud to be a part of a project that will provide enormous benefits to the environment, the local economy of Edson and Alberta.”
BPC, a joint venture between affiliates of PCL Construction and Overland Contracting Canada, Inc., a Black & Veatch Company, will construct the facility under an Engineering, Procurement, and Construction Services contract with Kineticor acting as construction and asset manager. Cascade will additionally benefit the local community with over three million work hours of labour required for construction, creating approximately 600 jobs during peak construction as well as 25 long-term jobs during operation.