Capital Power Corporation has entered into a long-term Energy Supply Agreement (ESA) with Meta Platforms, Inc. to provide 250 MW of capacity and energy for a data centre in Sturgeon County, Alberta. The agreement, which extends for more than 10 years, is backed by Capital Power's existing Alberta power generation fleet and is expected to see the load come online in the second half of 2028. This deal enhances Capital Power's contracted profile with stable cash flows while supporting the province's ability to attract large-scale digital infrastructure investments.

The ESA includes both capacity and energy payments, structured to provide long-term commercial stability. Meta Platforms, Inc. holds an AA- / Aa3 credit rating. The agreement preserves Capital Power's ability to pursue further commercial optimization at its Genesee site. Avik Dey, President and Chief Executive Officer of Capital Power, highlighted the company's readiness to serve the growing demand for 24/7 power required by AI infrastructure, citing the dependability and dispatchability of their Alberta fleet.

The transaction aligns with Capital Power's strategy to support rising electricity demand across North America through disciplined investment and operational excellence. Danielle Smith, Premier of Alberta, noted that such investments create jobs and generate revenue, reinforcing the province's position as a prime location for AI and digital infrastructure development. Capital Power operates approximately 12 GW of generation capacity across 35 facilities, utilizing natural gas, renewables, and battery energy storage solutions.

Pembina Pipeline Corporation has entered into a non-binding Heads of Agreement (HOA) with the Government of Canada, the Province of Alberta, Trans Mountain Corporation, and the Alberta Petroleum and Marketing Commission to participate in a proposed nation-building energy infrastructure initiative. The agreement aims to strengthen Canada's energy transportation network and expand market access for Canadian crude oil. Pembina will contribute its development and execution expertise to the multi-stakeholder initiative, which is intended to connect Canadian energy to global markets. The company's participation remains subject to the satisfaction of certain conditions.

Project Overview

The HOA outlines the development of a new approximately one million barrel per day crude oil pipeline system connecting Alberta to Canada's West Coast, along with a related export terminal. The proposed pipeline will leverage the existing Trans Mountain pipeline right of way, known as the southern route. The project is being advanced as a national priority involving the Government of Canada, the Province of Alberta, Indigenous partners, and industry. Trans Mountain Corporation will serve as the lead project proponent, responsible for construction, the regulatory process, stakeholder and Indigenous engagement, and subsequent operation of the asset.

Ownership Structure and Pembina's Role

The project will be held through a development company jointly owned by the Government of Canada, the Province of Alberta, and Pembina. A working interest will be reserved for Indigenous partners to acquire at commercial operations. Pembina's economic interest through construction will be 10 percent, with the opportunity for up to an additional 10 percent once the project enters commercial operation. Pembina will participate as an experienced industry operator, providing an independent perspective on cost, schedule, and execution to complement the lead project proponent.

Due Diligence and Investment Framework

Pembina is in the early stages of reviewing the development plans and initial capital cost estimates for the project. This due diligence work stream will continue until the signing of definitive agreements, which is targeted for September 2026. The company will evaluate its participation through a disciplined and rigorous investment framework consistent with its capital allocation guardrails. Pembina has full discretion over any final investment decision (FID) for its interest and shall have no at-risk development capital prior to FID. The multi-stakeholder structure includes protections for Pembina related to matters such as cost overruns and returns.

Scott Burrows, President and Chief Executive Officer of Pembina, stated that the project represents a once-in-a-generation opportunity to advance nation-building energy infrastructure. He emphasized that Pembina's participation will be evaluated through the same disciplined lens applied to every capital decision, preserving financial flexibility and incorporating meaningful protections to create durable value for shareholders.