Massive TransAlta Cogeneration Project

TransAlta Energy Corporation (TransAlta) executed key agreements with Dow Chemical Canada Inc., Bayer Inc. and NOVA Chemicals (Canada) Ltd. on September 13, 2000, which provided for TransAlta’s investment of $400 million into the development of the Sarnia Regional Cogeneration Project, a 650 megawatt (MW) natural-gas-fired power project. Pursuant to the terms of the agreements, TransAlta, an international energy company with more than $6 billion in assets, will build, own and operate a 440-MW cogeneration plant and acquire and operate existing utility plants, representing an additional 210-MW.

Full commercial operation of the new plant, which is to be located in Sarnia, Ontario, is expected by October, 2002. It will supply Bayer Inc., Dow Chemical Canada Inc. and NOVA Chemicals (Canada) Ltd. with power and steam, while excess power will be sold into the competitive electricity markets. The Project will be the largest cogeneration facility in Canada, and will be the first large project of its kind to go forward in Ontario’s emerging competitive power market.

In representing TransAlta, in-house Legal Counsel Ron Daschle was assisted by a team from Macleod Dixon LLP that included Joel Friley and David Eeles (project development and finance, corporate), Chuck Higgins (energy) and Mike Moher (regulatory). Acting for the other parties to the agreements were Mark Bradley, General Counsel for Dow Chemical Canada Inc., Mark Peters, Legal Counsel for Bayer Inc. and Fred Maxim, Corporate Counsel for NOVA Chemicals (Canada) Ltd.


David A. Eeles Charles L.K. Higgins Michael R. Moher Joel S. Friley