TransAlta announced the purchase of a 310‑megawatt portfolio of four natural‑gas‑fired power plants in Ontario from Far North Power Corp., a joint venture of Hut 8 Corp. and Macquarie Equipment Finance Ltd. The deal is valued at $95 million, subject to working‑capital adjustments, and will be financed with cash on hand and draws on the company’s credit facilities. The transaction is expected to close in the first quarter of 2026 after regulatory approvals and customary closing conditions are met.
The portfolio comprises the Iroquois Falls (120 MW), Kingston (110 MW), North Bay (40 MW) and Kapuskasing (40 MW) plants. Together the assets are projected to generate roughly $30 million of average Adjusted EBITDA per year, with about 68 % of the gross margin contracted through 2031. The acquisition increases TransAlta’s total Ontario capacity to 1,300 MW and adds a substantial amount of contracted capacity to the company’s portfolio.
Strategically, the deal aligns with TransAlta’s goal of raising contracted EBITDA to over 70 % of total earnings. By adding a portfolio of highly contracted, dispatchable generation, TransAlta strengthens its presence in Ontario and creates a platform for future data‑center and reliability contracts, sectors that are expected to grow as the province electrifies and its population expands.
TransAlta’s recent earnings reports showed a decline in Adjusted EBITDA, largely driven by lower spot power prices in Alberta. The acquisition of these Ontario assets offsets that headwind by adding stable, higher‑margin generation. CEO John Kousinioris noted that the purchase “strengthens TransAlta’s position in Ontario through contracted and complementary assets and provides an attractive platform for re‑contracting opportunities beyond the current contract period.”
The deal is not without risk. The 68 % of the portfolio’s gross margin that is contracted through 2031 will expire thereafter, creating a recontracting risk. However, the growing demand for dispatchable generation in Ontario—driven by electrification and population growth—provides a tailwind that positions TransAlta to secure new data‑center and reliability contracts once the existing contracts mature.
Financially, the $30 million of average Adjusted EBITDA is expected to be immediately accretive to free cash flow and cash yield, improving TransAlta’s free‑cash‑flow profile. The transaction is scheduled to close in Q1 2026, pending regulatory approvals and customary closing conditions.
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