Canadian power generator TransAlta Corp (TSE:TA) on Thursday said it has agreed to acquire a 50% stake in an early-stage 320-MW pumped hydro energy storage project in southwestern Alberta.

The Tent Mountain Renewable Energy Complex is currently owned by Australia-based Montem Resources Ltd (ASX:MR1) and makes use of Montem's existing assets at Tent Mountain, including legacy water reservoirs from past mining operations.

TransAlta, which has experience with hydro facilities, will act as the project developer and will actively search for an offtake agreement during the development period. Montem will assist in managing the project.

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

The scheme has the potential to provide 15 hours of energy storage capability, according to the announcement. Construction could begin as early as 2026, with the facility then becoming operational between 2028 and 2030.

The acquisition also covers the intellectual property related to a 100-MW offsite electrolyser for green hydrogen production and a 100-MW offsite wind development project. It is expected to close in March.

TransAlta will pay CAD 8 million (USD 6m/EUR 5.6m) at closure and up to a further CAD 17 million, subject to development and commercial milestones.

(CAD 1 = USD 0.746/EUR 0.698)