TransAlta Corp. says it will acquire a 50 per cent interest in an early-stage pumped hydro energy storage development project in southwest Alberta.

The Calgary company says Montem Resources Limited currently owns the Tent Mountain Renewable Energy Complex the two companies will jointly manage with TransAlta acting as project developer.

Under the deal, TransAlta will pay Montem about $8 million, when the deal closes, with additional payments of up to $17 million contingent on the achievement of development and commercial milestones. 

The deal is subject to closing conditions, including approval from Montem shareholders, but is expected to close next month.

The deal includes land rights, fixed assets and intellectual property associated with the pumped hydro development project.

The project will be developed over the next four years, with construction targeted to start as early as 2026 and operation not expected to start until sometime between 2028 and 2030.

This report by The Canadian Press was first published Feb. 17, 2023.