Tent Mountain Renewable Energy Complex : TransAlta to join pumped hydro energy storage project
Clean energy company TransAlta will acquire a 50% stake in the Tent Mountain Renewable Energy Complex in Alberta, Canada from Montem Resources for a total consideration of approximately CAD 25 million ($18.55 million).
The Tent Mountain project is an early-stage 320MW pumped hydro energy storage development site that is expected to offer 15 hours of energy storage capability for the Alberta market.
Post-closing, the steelmaking coal and renewable energy development company Montem Resources will receive around CAD $8 million from TransAlta, with additional milestone payments of up to CAD 17 million.
Under the agreement, TransAlta will also acquire the land rights, fixed assets, and intellectual property related to the pumped hydro development project, situated in southwest Alberta.
TransAlta said it will further acquire the intellectual property of a 100MW offsite green hydrogen electrolyzer and a 100MW offsite wind development project as part of the agreement.
John Kousinioris – TransAlta President and CEO said: “The Project [ Tent Mountain Renewable Energy Complex] 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.”
TransAlta and Montem Resources will form a partnership and jointly manage the pumped hydro energy storage project with the former acting as project developer.
The Tent Mountain site will utilize Montem Resources’ existing assets such as large water reservoirs from past mining operations at the location.
The pumped hydro energy storage project, with additional geotechnical analysis being planned in 2023, will be developed over the next four years.
The construction of the Tent Mountain Renewable Energy Complex is anticipated to commence as early as 2026, with commercial operation likely to be achieved between 2028 and 2030.
With closing expected in March 2023, the acquisition is subject to customary closing conditions.