TransAlta signed a definitive deal to acquire Far North Power and its four natural gas plants in Ontario for C$95 million, subject to closing conditions. The portfolio totals 310 megawatts across Iroquois Falls, Kingston, North Bay and Kapuskasing, lifting TransAlta’s Ontario footprint to about 1,300 MW. Financing will come from cash on hand and credit facilities, with closing targeted for early first quarter of 2026.
Why Ontario capacity matters now
Ontario’s grid is tightening as load grows with EVs, data centres and industry. The Independent Electricity System Operator says provincewide demand could rise as much as 75 percent by 2050, and its Medium‑Term 2 procurement locked in more than 3,000 MW to bridge the gap, the agency reported in May.
Gas plants provide dispatchable generation, meaning output can be increased or decreased on command to keep the lights on. That reliability has policy weight even as Ottawa pushes decarbonization and new clean supply. The four sites add ready capacity in regions that already host heavy industry and winter peaking. It is a pragmatic addition to the fleet.
Deal terms and cash visibility
TransAlta says roughly 68 percent of the portfolio’s gross margin is contracted to 2031, aligning with Ontario’s five year capacity contracts that start May 1, 2026. Those contracts were awarded to Far North through the IESO Medium‑Term 2 auction, providing a clearer revenue base while preserving energy upside in the market, as Hut 8 detailed on July 2.
Expected average adjusted EBITDA of about C$30 million per year underscores the cash flow intent, with TransAlta flagging synergies from its marketing desk. “The market will meaningfully rely on existing firm, dispatchable generation for grid reliability,” said John Kousinioris,
TransAlta’s chief executive. Management also points to 167 acres of co‑located land as optionality for future use. That could be valuable as the province seeks flexible assets and new load connections.
“This acquisition is immediately accretive to cash flow and demonstrates progress towards our priority of pursuing strategic M and A,” said Joel Hunter, TransAlta’s chief financial officer.
Attention will fall on recontracting beyond 2031, since capacity contracts are time bound and the province’s resource mix is shifting. If IESO sticks to stated plans for ongoing procurements, more firm capacity will likely be needed.
