October 29, 2021 - 5:49 AM
CALGARY - TransAlta Renewables Inc. lowered its financial guidance for this year as it said it has found cracks in several foundations of the turbines at a wind farm in New Brunswick where a tower collapsed earlier this month.
The company says the discovery of the sub-surface cracks means the foundations will likely need repairs, and if replacement is required, costs are estimated at $1.5 million to $2.0 million per foundation
TransAlta Renewables suspended operations and began an investigation after a tower collapsed earlier this month at its Kent Hill wind farm. The suspended operation includes 50 wind turbines at Kent Hills 1 and Kent Hills 2 where the tower collapsed. Five turbines at Kent Hills 3 continue to operate.
The company says the foundation issues at the Kent Hills 1 and 2 sites are unique to the design of those sites and there is no indication of any foundation issues at the Kent Hills 3 site or the company's other locations.
It estimates the outage is expected to result in foregone revenue of about $3.7 million per month for as long as all 50 turbines are off-line, based on average historical wind production.
As a result, TransAlta Renewables lowered its guidance range for its comparable EBITDA, adjusted funds from operations, and cash available for distribution.
This report by The Canadian Press was first published Oct. 29, 2021.
Companies in this story: (TSX:RNW)
News from © The Canadian Press, 2021