SYDNEY, AUSTRALIA: Montem Resources Limited (ASX: MR1) has signed a binding agreement with TransAlta TMPH LP, a wholly-owned subsidiary of NYSE and TSX listed TransAlta Corporation to sell 50% of its Tent Mountain Renewable Energy Complex (TM-REX) in Alberta, Canada.
TM-REX represents a transformational clean energy project with an estimated project life of 80+ years. The sale includes rights to the land, fixed assets and intellectual property associated with a 320 MW / 4,800 MWh pumped hydro energy storage (“PHES”) development project, plus the intellectual property associated with a 100 MW offsite green hydrogen electrolyser and a 100 MW offsite wind farm.
The Tent Mountain PHES (“TM-PHES”) is a unique energy storage project that has the capability of providing grid reliability in a jurisdiction with increasing renewables penetration. The TM-PHES will be developed over the next 4 years and subject to regulatory, commercial, and engineering considerations, could be ready for construction as early as 2026, with a target commercial operation date in the 2028 to 2030 range.
Subject to the terms of the definitive agreements between the parties, TransAlta will pay C$24.7M (A$26.7M) for 50% of the TM-REX based on achievement of development and commercial milestones.
Montem Managing Director and CEO 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.”
“The Tent Mountain Pumped Hydro Energy Storage project is a critical infrastructure project for Alberta, and we are excited about entering the next stages of development with our new partner. The TM-REX presents an exciting opportunity for Alberta, with the potential to create up to 400 jobs, power up to 400,000 homes, and abate up to 590,000 tonnes of CO2 annually.”
“This is a great win for our shareholders after regulatory uncertainty hindered development of our coal projects. Our team showed flexibility in re-imagining the Tent Mountain Project, and we are delighted that TransAlta is going to be our partner to develop the TM-PHES, as well as the other elements of the TM-REX.”
“As part of the process, we will seek shareholder approval to complete the transaction with TransAlta. Upon completion of the transaction, we will be permanently closing the Tent Mountain Mine.”
TransAlta CEO John Kousinioris said: “The Tent Mountain Renewable Energy Complex is a unique development project for TransAlta 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.”