Atlantic Power: Calstock plant secures short-term PPA extension

By Erin Voegele | June 04, 2020

Atlantic Power Corp. announced on June 3 it has secured a short-term extension of the current power purchase agreement (PPA) for its Calstock plant, a 35 megawatt (MW) biomass power plant located in Hearst, Ontario.

The PPA with the Ontario Electricity Financial Corp. was scheduled to expire in June 2020. The agreement, however, was recently extended through Dec. 16, 2020, on existing terms. Atlantic Power said the extension provides the provincial government additional time to evaluate the future role of the Calstock plant and biomass generation in the province.

Atlantic Power also said it expects project adjusted EBITDA from Calstock in the July through December period will be lower than the comparable period of 2019, primarily due to an expected increase in fuel costs resulting from lower production at local mills due to the COVID-19 pandemic.

In a statement, Joe Cofelice, executive vice president of commercial development at Atlantic Power, said market conditions are currently unfavorable for re-contracting in Ontario. He indicated the short-term extension will provide the company with additional time to pursue longer-term contracting options. “We continue to work with the provincial government and other stakeholders in Ontario to develop a longer-term solution that properly values the non-power benefit streams provided by Calstock,” he continued.

According to Atlantic Power, the Calstock plant can process up to 320,000 GMT/yr of wood waste.