TransAlta’s Centralia Facility to Undergo Coal-to-Gas Conversion

TransAlta ( (TSE:TA) ) has issued an announcement.

TransAlta has signed a long-term agreement with Puget Sound Energy to convert its Centralia Unit 2 facility in Washington from coal to natural gas, ensuring a 700 MW capacity. This conversion will extend the facility’s life, reduce emissions by 50%, and align with clean energy laws, while generating long-term contracted cash flow for TransAlta. The project, requiring approximately $600 million in capital expenditures, is expected to commence operations by late 2028 and continue until 2044, pending regulatory approvals.

The most recent analyst rating on (TSE:TA) stock is a Hold with a C$19.50 price target. To see the full list of analyst forecasts on TransAlta stock, see the TSE:TA Stock Forecast page.

Spark’s Take on TSE:TA Stock

According to Spark, TipRanks’ AI Analyst, TSE:TA is a Neutral.

TransAlta’s overall stock score reflects significant challenges in financial performance and valuation, with a negative P/E ratio and high leverage. Technical indicators suggest a bearish trend, adding to the cautious outlook. However, the company shows resilience in cash flow generation and has a positive outlook for 2025, as highlighted in the earnings call. Improvements in operational efficiency and debt reduction are crucial for enhancing financial stability.

To see Spark’s full report on TSE:TA stock, click here.

More about TransAlta

TransAlta Corporation is a leading power generation company with operations in Canada, the United States, and Australia. It focuses on providing affordable, energy-efficient, and reliable power to municipalities, industries, and utility customers. The company is one of Canada’s largest producers of wind power and Alberta’s largest producer of thermal generation and hydroelectric power.

Average Trading Volume: 1,626,848

Technical Sentiment Signal: Buy

Current Market Cap: C$5.77B

For an in-depth examination of TA stock, go to TipRanks’ Overview page.