PR Newswire | Dec 29, 2021 07:00AM EST

12/29 06:00 CST

TransAlta Achieves Full Phase-Out of Coal in Canada CALGARY, AB, Dec. 29, 2021

CALGARY, AB, Dec. 29, 2021 /PRNewswire/ - TransAlta Corporation (TSX: TA) (NYSE: TAC) ("TransAlta" or the "Company") announced today that it has completed the last of three planned coal-to-gas conversions ("CTG") at its Alberta Thermal power generation facilities near Wabamun, Alberta.

"The full conversion of Keephills Unit 3 ("KH3") from thermal coal to natural gas is a significant milestone for TransAlta in its transition off coal. We are pleased to have completed this important step, nine years ahead of the government target," said John Kousinioris, President and CEO of TransAlta. "Our coal transition is among the most meaningful carbon emissions reduction achievements in Canadian history."

"Converting to natural gas from coal maintains the current generation capacity of KH3 and reduces our CO2 emissions by almost 50 per cent from approximately 0.86 tonnes CO2e per MWh to approximately 0.43 tonnes CO2e per MWh," Mr. Kousinioris added. "This not only highlights TransAlta's continued commitment to meet Alberta's need for safe, reliable and low-cost electricity but also delivers a step-change reduction in the emissions from our converted units."

The $29 million investment in the KH3 conversion plus another $48 million for gas infrastructure and maintenance projects brought a significant boost to the local economy, and at its peak provided nearly 600 construction jobs. Since 2019, TransAlta has invested $295 million in its CTG program that also included conversion of Sundance Unit 6 (Q1-2021), conversion of Keephills Unit 2 (Q3-2021), conversion of Sheerness Units 1 and 2, plus construction of new high-volume gas delivery infrastructure.

Overall, the converted units generate nearly 50 per cent fewer CO2 emissions fueled by natural gas compared to coal. This project is a significant achievement for TransAlta towards its target to reduce 60 per cent, or 19.7 million tonnes, of annual greenhouse gas emissions by 2030 over 2015 levels and achieve carbon neutrality by 2050. By meeting its 2030 target, TransAlta's performance will exceed Canada's national Paris Agreement target of 40-45 per cent reduction by 2030. The completed conversions will also contribute to the goals of the Powering Past Coal Alliance, which TransAlta joined at the 26th UNClimate Change Conference of the Parties (COP26).

With successful completion of the KH3 conversion and the planned closure of the Highvale coal mine effective December 31, 2021, TransAlta's thermal facilities in Alberta will have been fully transitioned to 100 per cent natural gas operation. In aggregate, TransAlta has retired 3,794 MW of coal-fired generation capacity since 2018 while converting 1,659 MW to cleaner burning natural gas.

This achievement, coupled with TransAlta's growing and diversified generating portfolio, including hydro, wind, solar and battery assets, helps position TransAlta to be a highly competitive provider of reliable, low and zero-emitting electricity for customers in Canada, the United States, and Australia.

TransAlta Thermal Facility Status Summary (near Wabamun Lake, Alberta)

Unit MCRUnit Current Status (MW net)

Sundance Unit 1 280 Retired Dec. 31, 2017

Sundance Unit 2 280 Retired July 31, 2018

Sundance Unit 3 368 Retired July 31, 2020

Sundance Unit 4 406 Fueled only on natural gas Jan. 1 to Mar. 31, 2022. Scheduled to retire April 1, 2022.

Sundance Unit 5 406 Retired Nov. 1, 2021

Sundance Unit 6 401 Converted to natural gas Feb. 1, 2021

Keephills Unit 1 395 Scheduled to retire Dec. 31, 2021

Keephills Unit 2 395 Converted to natural gas July 19, 2021

Keephills Unit 3 463 Converted to natural gas Dec. 29, 2021

Sheerness Unit 1 200 Converted to natural gas March 31, 2021

Sheerness Unit 2 200 Converted to natural gas April 4, 2020

Ending mining operations Dec. 31, 2021. Will begin fullHighvale Mine mine reclamation effective Jan. 1, 2022.

About TransAlta:

TransAlta owns, operates and develops a diverse fleet of electrical powergeneration assets in Canada, the United States and Australia with a focus onlong-term shareholder value. TransAlta provides municipalities, medium andlarge industries, businesses and utility customers with clean, affordable,energy efficient and reliable power. Today, TransAlta is one of Canada'slargest producers of wind power and Alberta's largest producer ofhydro-electric power. For over 100 years, TransAlta has been a responsibleoperator and a proud community-member where its employees work and live.TransAlta aligns its corporate goals with the UN Sustainable Development Goals.

For more information about TransAlta, visit its website at transalta.com.

Cautionary Statement Regarding Forward-looking Information:

This news release contains "forward-looking information" within the meaning ofapplicable Canadian securities laws, and "forward-looking statements" withinthe meaning of applicable United States securities laws, including the UnitedStates Private Securities Litigation Reform Act of 1995 (collectively referredto herein as "forward-looking statements"). In some cases, forward-lookingstatements can be identified by terminology such as "continue", "will","develop", "goal", "target" and similar expressions suggesting future events orfuture performance. More particularly, and without limitation, this newsrelease contains forward-looking statements and information relating to: theCompany's target of reducing 60 per cent, or 19.7 million tonnes, of annualgreenhouse gas emission by 2030 over 2015 levels and achieving carbonneutrality by 2050, the Company's expected performance exceeding Canada'snational Paris Agreement target, the planned closure of the Highvale coal mineeffective December 31, 2021 and the resulting full transition of the Company'sthermal facilities in Alberta to 100 per cent natural gas operation, and theexpected timing of the retirement of Keephills Unit 1 and the full retirementof Sundance Unit 4. The forward-looking statements contained in this newsrelease are based on current expectations, estimates, projections andassumptions, having regard to the Company's experience and its perception ofhistorical trends, and includes, but is not limited to, expectations,estimates, projections and assumptions relating to the extent of regulationspertaining to COVID-19 not becoming significantly more onerous and currentconditions and expected future developments. These statements are subject to anumber of risks and uncertainties that may cause actual performance, events orresults to differ materially from those contemplated by the forward-lookingstatements. Some of the factors that could cause such differences include: theeffects of weather catastrophes and public health crises, including COVID-19;labour availability; disruptions to the Company's supply chains; failure toobtain necessary regulatory approvals in a timely fashion, or at all; and otherrisks and uncertainties discussed in the Company's materials filed with thesecurities regulatory authorities from time to time and as also set forth inthe Company's Management's Discussion and Analysis and Annual Information Formfor the year ended December 31, 2020, filed under the Company's profile withthe Canadian securities regulators on www.sedar.com and the U.S. Securities andExchange Commission on www.sec.gov. Readers are cautioned not to place unduereliance on these forward-looking statements, which reflect TransAlta'sexpectations only as of the date of this news release. TransAlta disclaims anyintention or obligation to update or revise these forward-looking statements,whether as a result of new information, future events or otherwise, except asrequired by law.

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SOURCE TransAlta Corporation