Pumped Storage Hydro

TransAlta acquiring 50% interest in Tent Mountain pumped storage

TransAlta acquiring 50% interest in Tent Mountain pumped storage

TransAlta Corporation has entered into a definitive agreement to acquire a 50% interest in the 320 MW Tent Mountain Renewable Energy Complex, an early-stage pumped hydro energy storage development project owned by Montem Resources Limited.

The acquisition includes the land rights, fixed assets and intellectual property associated with the pumped hydro development project. TransAlta and Montem will jointly manage the project, to be located in southwest Alberta, with TransAlta acting as project developer. The project leverages Montem’s assets at Tent Mountain, which include large legacy water reservoirs from past mining operations.

TransAlta said the characteristics of the Tent Mountain site present a unique opportunity to provide 15 hours of energy storage capability for the Alberta market. The project is located on private, industrial zoned land, including an existing upper reservoir that supports a cost-competitive pumped hydro project compared to other similar projects, according to a release.

The project has completed technical and environmental work including a hydrology assessment, with additional geotechnical analysis being planned in 2023 to further advance the design. The project will be developed over the next four years, with construction targeted to start as early as 2026 and a commercial operation date between 2028 and 2030.

TransAlta said this project offers similar long-term advantages as its other Alberta hydro facilities, including a lifespan of greater than 80 years. The project’s closed loop system will result in minimal impacts to Alberta’s natural river system and will have the ability to provide flexible, firm clean power to customers at scale. The project will seek an offtake agreement over the development period for the energy and environmental attributes generated by the facility.

“The 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,” said John Kousinioris, president and chief executive officer of TransAlta.

TransAlta will pay Montem about C$8 million ($5.93 million) upon closing the transaction, with additional payments of up to C$17 million ($12.61 million) contingent on achieving specific development and commercial milestones. The acquisition also includes the intellectual property associated with a 100 MW offsite green hydrogen electrolyser and a 100 MW offsite wind development project. Closing of the transaction, expected to occur in March 2023, remains subject to customary closing conditions, including receipt by Montem of shareholder approval. The project will be independent of TransAlta’s existing Alberta hydro assets and will be managed through this partnership.

Montem Resources is a steelmaking coal and renewable energy development company that owns and leases coal tenements and freehold land in the Canadian provinces of Alberta and British Columbia. The company’s objective is to advance its steelmaking coal projects and renewable energy complex in the Crowsnest Pass, Alberta.

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the U.S. and Australia. TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydroelectric power.