Suncor Energy Inc. plans to sell its wind and solar portfolio for C$730 million ($547 million) to a subsidiary of Calgary-based Atco Industries Inc.

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Suncor CEO Kris Smith said the transaction with Canadian Utilities Ltd. (CUL) “streamlines our portfolio” to focus on oilsands, refining, hydrogen, renewable fuel, and carbon capture and storage (CCS).

CUL Vice President Bob Myles said the deal, set to close in 2023, was an  instant gain for a renewable power arm. Atco is aiming to reach 1,000 MW of renewable generation by 2030. 

Suncor’s wind and solar assets include 111 MW generated by 75 wind turbines in Alberta, Ontario and Saskatchewan. Another 45 turbines, capable of 200 MW, are under construction in southeastern Alberta. A 220 MW Alberta solar power project is on the drawing table.

Atco and CUL said the Suncor assets have a growth portfolio with more than 1,500 MW of renewable power projects in various development stages. The acquisition puts the corporation “on a firm trajectory to become a major renewable player.”

The environmental fuels arm that Suncor is keeping includes Canada’s top ethanol plant at Sarnia, using 40 million bushels/year, or 20% of the annual Ontario corn crop to make 105 million gallons.

Suncor also is working on projects that include investments in a Quebec biofuels plant under construction at Varennes, a Lanzajet Inc. green aviation gas project at Soperton, an Alberta hydrogen partnership and trials of fuel cell trucks.