Mr. John Kousinioris reports

TRANSALTA ACHIEVES COMMERCIAL OPERATION OF 300 MW WHITE ROCK PROJECT AND INCREASES ITS U.S. RENEWABLES FLEET TO 820 MW

TransAlta Corp.'s 300-megawatt White Rock East and White Rock West wind facilities, located in Caddo county, Oklahoma, have achieved commercial operation. The White Rock wind facilities are fully contracted to Amazon Energy LLC and are currently supplying clean and affordable electricity to the company's customer. TransAlta's portfolio in the United States now totals 820 MW in net operating renewable-energy capacity.

"We are pleased to bring into service our first clean-electricity project in Oklahoma, White Rock, which is our largest wind project completed to date. White Rock was made possible through our long-term customer relationship with Amazon and its commitment to power its operations with 100 per cent renewable energy. Amazon is a global leader in procurement of renewable energy to achieve sustainability and carbon-reduction objectives, and we are excited to be a trusted supplier to provide clean and affordable electricity as part of Amazon's decarbonization pledge," said John Kousinioris, president and chief executive officer of TransAlta.

Mr. Kousinioris added: "In addition, we are also pleased to announce our first long-term contract to supply production tax credits (PTCs) to a taxable counterparty in the U.S. We have secured favourable pricing on approximately 80 per cent of the expected generation of PTCs, which will provide another stream of contracted revenue that secures long-term cash flows from White Rock and further diversifies the contracted cash flows from our renewable portfolio. We look forward to operating this facility and delivering on our commitments to our customers. As I look ahead, we are nearing completion of our other Oklahoma wind project which will add another 200 MW facility, increasing our U.S. portfolio to more than one gigawatt, another key milestone for our company."

White Rock comprises a total of 51 Vestas wind turbines and is the first of the company's two wind projects in Oklahoma to achieve commercial operations. On Feb. 22, 2024, the company entered into a 10-year transfer agreement with a AA-minus-rated customer for the sale of approximately 80 per cent of the expected PTCs to be generated from the White Rock wind facilities. The remaining PTCs are expected to be sold through spot transactions or contracted at a later date.

White Rock project highlights:

• Long-term contracted revenues from Amazon, an investment-grade customer;
• 10-year transfer agreement of PTCs, which are subject to an annual inflation adjustment factor, with an AA-minus-rated third party customer;
• 49 Vestas V162 6.0 MW and two Vestas V136 3.45 MW turbines that are 119 metres and 105 metres in height with total rotor diameters of 162 metres and 136 metres, respectively;
• Estimated average annual adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) range between $53-million (U.S.) and $57-million (U.S.), including third party sales of PTCs;
• TransAlta weighted-average contract life of renewables portfolio1 increased to 12 years.

About TransAlta Corp.

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia, with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with clean, affordable, energy-efficient and reliable power. Today, TransAlta is one of Canada's largest producers of wind power, and Alberta's largest producer of hydroelectric power. For over 112 years, TransAlta has been a responsible operator and a proud member of the communities where it operates and where its employees work and live. TransAlta aligns its corporate goals with the United Nations Sustainable Development Goals and the Future-Fit Business Benchmark, which also define sustainable goals for businesses. The company's reporting on climate change management has been guided by the international financial reporting standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66-per-cent reduction in greenhouse-gas emissions, or 21.3 million tonnes carbon dioxide equivalent, since 2015 and received an upgraded MSCI ESG (environmental, social and governance) rating of AA.

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