Suncor turns to hydrogen

Suncor and Canadian Utilities Limited, an ATCO company, have agreed to sell each other’s wind and solar power assets for a total of $730 million.

In order to advance the firm toward carbon neutrality by 2050, Suncor is selling its assets related to wind and solar energy in order to concentrate on energy expansion sectors, hydrogen, and renewable fuels that are more complimentary to its core activities.

According to Kris Smith, interim president and CEO of Suncor, “our decision to divest these wind and solar power assets significantly streamlines our portfolio, allowing us to focus our efforts on our core operations.” In addition to our main business, our ESG performance initiatives will continue to develop other areas, such as replacing base plant coke boilers with reduced emissions cogeneration units, investing in hydrogen and low carbon fuels, and quickening the commercialization of carbon capture technologies.

In addition to the Forty Mile wind farm, which is scheduled to be operational by the end of the year, and renewable energy assets in the development stage, the deal also includes a share in the Magrath, Chin Chute, and Adelaide wind farms.

The acquisition is subject to customary closing requirements, including necessary third-party regulatory evaluations and clearances, and is anticipated to conclude in the first quarter of 2023. For this kind of transaction, the purchase price is subject to the usual closing adjustments.