TransCanada Corporation plans to sell renewable energy assets to expand its portfolio of fossil fuel pipeline networks and storage facilities.
The company is working with JP Morgan Chase & Co. to find a buyer for its Kibby wind power installation in Maine, and hydropower projects in New England. The Kibby Wind Project has 44 wind turbines capable of generating 132 megawatts (MW) of energy.
These assets – worth $7 billion – are being used to help fund its US$10.2-billion acquisition of Columbia Pipeline Group Inc. This acquisition will greatly increase TransCanada’s involvement in the controversial shale gas play, popularly known as “fracking”. Not only does the fracking process require an undisclosed chemical cocktail to be pumped into the ground at high pressure, but it also uses an immense amount of fresh water and has the potential to contaminate local drinking water sources. Recent studies also point to a link between fracking and an increase in seismic activity.
TransCanada is the largest Canadian pipeline company by market value after Enbridge Inc.