Suncor selling wind, solar assets to focus on hydrogen, renewables

Suncor Energy Inc. [SU-TSX, NYSE] has reached an agreement to sell its wind and solar assets for $730-million to Canadian Utilities Ltd., an Atco company. As previously announced, Suncor is divesting its wind and solar assets to focus on areas of energy expansion, hydrogen and renewable fuels that are more complementary to its core business as the company progresses to net zero by 2050.

“Divesting of these wind and solar assets further streamlines our portfolio so that we can concentrate our efforts on our core business,” said Kris Smith, Suncor interim president and CEO.  “Our [environmental, social and governance] efforts will continue to advance in other areas that are complementary to our core business such as replacing coke-fired boilers at base plant with lower-emission cogeneration units, investing in hydrogen and low-carbon fuels and accelerating commercial scale deployment of carbon capture technology.”

The sale includes an interest in the Magrath, Chin Chute and Adelaide wind farms, as well as the Forty Mile wind farm, which is expected to be operating by year-end, and development-stage renewable power assets.

The transaction is expected to close in the first quarter of 2023 and is subject to customary closing conditions, including applicable third-party regulatory reviews and approvals. The purchase price is subject to closing adjustments typical of transactions of this nature.

Suncor is Canada’s leading integrated energy company. Suncor’s operations include oil sands development, production and upgrading; offshore oil and gas; petroleum refining in Canada and the United States; and the company’s Petro-Canada retail and wholesale distribution networks (including Canada’s Electric Highway, a coast-to-coast network of fast-charging electric vehicle stations).