Montem Resources unveils strategy to become Canada’s first large-scale green hydrogen producer

Montem Resources (ASX: MR1) has unveiled new plans to potentially become Canada’s first large-scale green hydrogen producer from its Tent Mountain project in Alberta.

Independent expert studies on the proposal have shown the project could generate green-hydrogen through combined pumped hydro energy storage (PHES) and renewable offsite wind power.

It is estimated the project could produce up to 13,000 tonnes of green hydrogen annually.

Montem managing director Peter Doyle said developing Tent Mountain as a renewable energy complex could result in “Canada’s first truly green hydrogen”.

“Furthermore, the PHES component of the complex will play an important role in filling supply gaps in Alberta’s electricity grid.”

“There is a growing requirement for clean, dispatchable renewable energy in Alberta and the Tent Mountain PHES project is an ideal addition to Alberta’s electricity grid.”

Mr Doyle said the company started investigating an end of mine life PHES system in 2019, which included site assessment and “high-level” economic analysis.

He noted the results had been promising and the company had applied for a federal grant to assist with funding the project through a feasibility stage, which is expected to take 12-18 months.

“The various technical, economic and social studies we have completed over the past six months show technical viability and strong returns over a 50-plus year project life.”

Advancing renewable energy strategy

Montem is now progressing renewable energy plans at Tent Mountain and is working with the Piikani Nation to evaluate establishing a wind farm to supply electricity to the Tent Mountain PHES.

Both entities have agreed to explore mutual benefits and work together to develop the concept and secure federal funding.

Montem has also applied to Canada’s Clean Fuels Program for the C$5 million grant to assist with financing the feasibility study.

In the recent study, Entura Hydro Tasmania found Montem could use existing water reservoirs for the PHES facility from Tent Mountain’s historical coal mining operations.

The study indicated energy storage potential for the project of 2,560MWh.

This would provide enough energy in storage to generate 320MW for eight continuous hours, which could power about 200,000 homes through the night.

Mr Doyle pointed out Tent Mountain is within 10km of the Alberta electricity grid and has great existing infrastructure to support development.

It is adjacent to rail and gas pipelines and has plenty of space to develop the green hydrogen plant that would run off its proposed wind farm power.

GHD has defined the development pathway through the feasibility stage, a pilot plant and commercial production.

Significant investor and policy support

Green hydrogen is a rapidly emerging source of a renewable energy which has attracted both investor and policy support.

Combined with uncertainty with fossil fuel projects and carbon dioxide taxation schemes in Alberta, Mr Doyle said power companies were turning to renewables to supply more power to the region’s grid.

“Wind and solar power’s reliance on weather conditions make both sources of energy inherently intermittent and causes both to rely heavily upon large-scale energy storage (batteries),” he said.

“The most cost-effective form of this large-scale energy storage is PHES, which can dispatch renewable energy on demand and provide the required stability to Alberta’s power grid.”

“Lithium-ion batteries provide short-term storage, but there is a material shortage in long duration storage, which is the sweet spot for pumped hydro.”

Mr Doyle added with the renewable energy transition gathering pace in Alberta, Montem had a “unique opportunity” to transition Tent Mountain from an idled coal mine to a clean renewable energy complex.”