Transalta Announces First Investment in Distributed Generation

Calgary, AB. -- -

Calgary, AB. -- TransAlta has announced the purchase of a minority interest in The ADCO Group of Companies, a western Canadian distributed generation company, for $5.2 million. The transaction is a continuation of TransAlta's investments in emerging environmental and power technologies. "Our investment in The ADCO Group of Companies allows TransAlta to participate in the fast-paced and growing distributed generation market," says Dawn Farrell, TransAlta's executive vice-president, Corporate Development. "We believe Daryl Kruper and his team are very well positioned to deliver small generation technologies to the market in western Canada." "Having TransAlta as a shareholder gives us the strength and capability to capture a significant share of the growing distributed generation market," says Daryl Kruper, president and CEO of The ADCO Group of Companies. "Bringing technology options to customers that lower costs and improve reliability in markets short of power will support a strong growth strategy for ADCO." Distributed generation, often natural gas-fired, uses small-scale electric generators close to the user or load being served, rather than large centralized power stations. Distribution and transmission costs are reduced as power is generated directly on the user's site, which is particularly effective when lines cannot be upgraded or in remote areas. TransAlta is building a portfolio of investments in emerging power and environmental technologies that have the potential to increase the competitiveness of TransAlta's core businesses or to allow the company to gain exposure to the growing markets for distributed generation and renewable energy. Through its Technology and New Ventures group, the company follows emerging power technology trends and leverages TransAlta's experience as a strategic industry venture partner with investments in promising new firms. TransAlta is an international electric energy company with more than $7 billion in assets. The company is focused on achieving strong earnings growth and enhancing its competitive edge as a low-cost operator of generation and transmission assets, and a successful developer of gas-fired independent power projects. The company is concentrating its growth in Canada, the United States, Australia and Mexico. TransAlta owns and operates more than 8,000 megawatts of generation plus significant transmission assets in Alberta. The ADCO Group of Companies will own and operate distributed generation facilities, design and construct power plants, and provide power sales and service throughout Western Canada. The company will also offer its customers the best traditional genset technology lines as well as the new Elliott Energy System's micro-turbine product lines.