ATCO Closes Major Canadian Renewables Acquisition and Enters Into a Long-Term Renewable Energy Purchase Agreement with Microsoft

ATCO, through its investment in Canadian Utilities Limited, has successfully closed the previously announced acquisition of a portfolio of wind and solar assets and projects located in Alberta and Ontario from Suncor Energy Inc. Concurrent with the close of this acquisition, ATCO entered into a new 15-year renewable energy purchase agreement (REPA) with Microsoft Corporation. Under the terms of the agreement, Microsoft will purchase 150 megawatts (MW) of renewable energy generated by ATCO´s newly acquired Forty Mile Wind Phase 1 Project in Alberta.

“Today represents two big steps forward on our commitment to become a leader in decarbonization,” said Bob Myles, Executive Vice President, Corporate Development, ATCO. “Firstly, with this transaction ATCO adds 232 MW of operating wind assets and a 1.5-gigawatt renewable development portfolio in Canada. Secondly, with the 15-year REPA with Microsoft, we have enabled another customer to reduce the carbon intensity of their operations.”

“Today we are announcing a new power purchase agreement with ATCO for the Forty Mile Wind Phase 1 Project in Alberta. This agreement, along with one we announced in March 2022, supports our commitment to decarbonization and furthers our goal of being powered by 100% renewable energy by 2025. We look forward to working with ATCO to help us get one step closer to our carbon negative commitment and bring more renewable energy to the grid,” said Chris Barry, President, Microsoft Canada.

The Forty Mile Wind Phase 1 project is the second REPA ATCO has signed in the past year with Microsoft. In March 2022, ATCO signed a 15-year REPA for Microsoft to purchase all renewable energy generated by ATCO’s Deerfoot Solar Project located in Calgary, Alberta, one of the largest solar installations in a major urban centre in Western Canada. Customers buying through REPAs represents a long-term collaboration that helps to bring new clean electricity generation online. It also provides a demand signal to spur the development of new clean energy solutions.

ATCO´s 202 MW Forty Mile Wind project is located in southeastern Alberta, in the County of Forty Mile. ATCO has successfully begun operating the Forty Mile Wind facility as well as the 30 MW Adelaide wind facility in Ontario.

Through a formal preemptive rights process, existing partners on the Chin Chute and Magrath Wind projects opted to acquire the additional interest in these facilities. As a result, the corresponding 20 MW of net nameplate capacity of the previously announced 252 MW operational portfolio was not acquired by ATCO as part of this transaction and the final purchase price was adjusted accordingly from $730 million to $713 million.

About ATCO

With approximately 6,400 employees and assets of $23 billion, ATCO is a diversified global corporation with investments in the essential services of Structures & Logistics (workforce and residential housing, innovative modular facilities, construction, site support services, workforce lodging services, facility operations and maintenance, defence operations services, and disaster and emergency management services); Utilities (electricity and natural gas transmission and distribution, and international electricity operations); Energy Infrastructure (electricity generation, energy storage and industrial water solutions); Retail Energy (electricity and natural gas retail sales); Transportation (ports and transportation logistics); and Commercial Real Estate. More information can be found at www.ATCO.com.

Contact:

Colin Jackson – Senior Vice President, Finance, Treasury, Risk & Sustainability – Colin.Jackson@atco.com – (403) 808–2636

Source: ATCO Ltd.