Montem Resources Ltd (ASX:MR1) is progressing plans to transition its Tent Mountain Project in Alberta, Canada, into a renewable energy complex, following separate independent expert studies in 2019 and 2021 which demonstrated the project’s strong viability to host renewables.
Assets in place to assist this transition include 320-megawatt pumped hydro energy storage (PHES), a 100-megawatt green hydrogen electrolyser and a 100-megawatt wind farm.
The company now needs to secure several preconditions, including economics and cost estimates, admission to the Alberta power grid and grant funding from the Canadian Government and other investors.
Appointment of engineering partner
Montem has appointed engineering consultancy Hatch to undertake the detailed design and engineering work to support a Class III cost estimate for the pump hydro energy storage (PHES) element of the new Tent Mountain Renewable Energy Complex (TM-REX).
The engineering company has a global network of 9,000 professionals working on ‘the world’s toughest challenges’, with experience spanning more than 150 countries in the metals, energy, infrastructure, digital and investments market sectors.
Montem managing director and CEO Peter Doyle said: “We are excited to partner with Hatch to deliver the detailed design for the pump hydro element of the TM-REX.
“Hatch is a world leader in planning and construction of pumped hydro storage projects and has significant experience here in Alberta.
“Initial engagements between the TM-REX team and Hatch have been very positive, and we are excited to be working with their world-class team of experts.”
Grid connection and power generation
The Tent Mountain PHES is within 10 kilometres of the Alberta high voltage electricity grid, providing logistics and economic advantages, and the company is excited to be in the queue for connection.
Montem continues to work closely with the Piikani Nation on wind power generation strategies. Tent Mountain is in the traditional territory of the Piikani, and Piikani’s reserve lands lie in the heart of southern Alberta’s wind power generating region.
Project economics
The PHES Class III cost estimate will be coupled with analytics supplied by Boost Energy to provide project economics.
Cost estimate and project economics results are expected at the end of the second quarter of this year.
The development of final designs for the pump hydro and Class III cost estimates will feed into project economics. With these in hand, Montem will have the necessary information to enable a decision to be made to accelerate the development of the TM-REX, rather than restarting the coking coal mine on site.
Government and other funding streams
Montem is awaiting the result of its application for C$5 million in federal funding from Canada’s Clean Fuels Program. Grants are expected to be awarded in the northern hemisphere spring of this year.
It is also investigating other renewable energy project grant options with Alberta Innovates, Invest Alberta, and Emissions Reduction Alberta.
Next steps
Montem’s focus is to complete the front-end engineer and design (FEED) over the next 18 months, culminating in engineering, procurement and construction (EPC) tender evaluation in the first half of 2023.
In parallel, the team will progress process to establish a connection to the Alberta electricity transmission system – the grid.
Geotechnical work and detailed design and engineering work for TM-REX are key steps towards de-risking the renewable power project and moving closer to commercialisation.
“The TM-REX continues to build momentum and represents an extraordinary opportunity for Montem to be at the forefront of energy transition in Alberta,” said Doyle.