ENMAX Corporation has reached a definitive agreement to sell its District Energy Centre to Atlantica Sustainable Infrastructure for $27 million.
The facility, located at the intersection of Ninth Avenue and Fourth Street S.E., has been providing central heating and hot water to commercial buildings throughout East Village and the downtown core since it was commissioned in 2010.
According to ENMAX officials, the sale is part of the organization's ongoing effort to focus on its electricity services.
"We are proud to have pioneered the delivery of innovative district energy services within Calgary over the past decade," said Lonnie Enns, senior vice-president of ENMAX Energy, in a statement. "The announced sale will enable ENMAX to align its forward investment focus on delivering the essential electricity and energy services our customers rely on while creating value for our Shareholder, the City of Calgary.
"We are pleased to enter into this agreement with Atlantica, an experienced sustainable infrastructure company committed to the transition towards clean energy, as this will ensure District Energy Centre’s valued customers continue to benefit from the high quality, reliable services they receive today while also positioning the facility for future investment and growth."
The sale is expected to be finalized in early 2021 once conditions of the deal are met including regulatory approval from the Alberta Utilities Commission.