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First panels installed at Michichi Solar north of Drumheller. (Capstone)
Kneehill County and Starland County

Construction begins on central Alberta solar projects

Oct 19, 2022 | 12:52 PM

Construction is now underway on a pair of major solar projects in central Alberta.

On Oct. 18, 2022, Capstone Infrastructure Corporation (TSX: CSE.PR.A) (“Capstone”) marked the start of solar panel installation at two new projects that aim to invest in the province’s energy market.

The Kneehill Solar project is located in Kneehill County, just north of the Town of Three Hills, while the Michichi Solar project is located in Starland County, just north of the Town of Drumheller.

Capstone officials say the two new solar facilities will each produce 25 MWac of electricity, enough power to supply 12,000 Alberta homes every year.

Both are also anticipated to create more than 100 jobs on site during peak construction and 70 FTE job years each over the operational life of the projects.

Michichi and Kneehill Solar are also expected to provide significant and stable long-term property tax revenue of an estimated $8 million to both Starland and Kneehill County over the operational life of the projects, say Capstone officials. Each project is also hoped to offset approximately 30,000 metric tonnes of CO2e each year.

Since 2018, Capstone says it has acquired and advanced more than 435 MW in new solar and wind development projects across the province, representing a total planned capital investment of more than $800 million. This is said to include the successful commissioning of the 132 MW Claresholm Solar in 2021 – described as Canada’s largest solar facility at the time.

Capstone says its leadership in forging partnerships with the private sector to help companies reach their climate and decarbonization targets continues with the new projects, as power and environmental attributes generated from Michichi Solar are expected to be sold to Keyera Corporation, described as one of the largest midstream oil and gas operators in Canada.

With the two new solar projects, Capstone says it is also continuing its commitment to building meaningful, long-standing relationships with Indigenous communities.The company says the Sawridge First Nation, a Cree Nation that is an original signatory to Treaty No.8, is an equity partner for both the Michichi and Kneehill Solar projects.

“Capstone is pleased to announce we’re meeting our construction milestones for the Michichi and Kneehill Solar Projects,” says David Eva, Chief Executive Officer of Capstone. “These projects are another example of our commitment to investing in the Alberta energy market and forming strong partnerships with the private and public sectors, First Nations, and local communities.”

Capstone officials say that both the Michichi and Kneehill Solar projects are slated to become operational in 2023.