Canada-based electric utility TransAlta has signed a definitive agreement with Montem Resources to acquire a 50% stake in the Tent Mountain renewable energy complex.
Tent Mountain is an early-stage 320MW pumped hydro-energy storage development project in southwest Alberta, Canada.
Under the terms of the agreement, both TransAlta and Montem will partner to jointly manage the pumped hydro project, while TransAlta will serve as the project developer.
The company will pay around $8m to Montem upon closing, along with additional payments of up to $17m contingent on achieving specific development and commercial milestones.
The acquisition also includes the land rights, fixed assets and intellectual property related to the pumped hydro development project.
TransAlta will obtain the intellectual property (IP) rights related to a 100MW offsite green hydrogen electrolyser and a 100MW offsite wind development project.
The transaction is expected to be completed in March 2023, subject to customary closing conditions, including receipt by Montem of shareholder approval.
TransAlta president and chief executive officer John Kousinioris said: “The Tent Mountain Renewable Energy Complex is a unique development opportunity for our Company and the Province of Alberta.
“The project can support the reliability of the Alberta grid with a proven technology that is non-emitting and has a significantly larger capacity and duration than other currently available storage options.
“We believe long-duration storage projects, like Tent Mountain, are essential to support the reliability of the grid in Alberta as wind and solar penetration increase on the path to net-zero electricity.”
Tent Mountain project is located on private, industrial-zoned land, with an existing upper reservoir that supports a cost-effective pumped hydro project compared to others.
It has already completed the necessary technical and environmental work, including a hydrology assessment, with additional geotechnical analysis being planned in 2023.
The project will be developed through the coming four years, with construction planned to start in 2026 and commercial operation between 2028 and 2030.
It will use Montem’s existing assets, including large legacy water reservoirs from past mining operations.
Montem Resources is a steelmaking coal and renewable energy development company that owns and leases land in the Canadian provinces of Alberta and British Columbia.
Montem managing director and chief executive officer Peter Doyle said: “We are thrilled to be entering into this partnership with TransAlta to develop the Tent Mountain Renewable Energy Complex.
“TransAlta has been operating in the Alberta power market for more than 110 years and brings many skill sets which are complementary to Montem’s.”
