Proposed southern Alberta coal mine could become renewable energy complex instead

One of the Australian companies that had proposed bringing coal mining back to the eastern slopes of Alberta's Rocky Mountains now says it may build a green hydrogen facility on the site instead.

CALGARY - One of the Australian companies that had proposed bringing coal mining back to the eastern slopes of Alberta's Rocky Mountains now says it may build a green hydrogen facility on the site instead.

Montem Resources Ltd. said in a recent investor presentation that it is working on plans to transition its proposed Tent Mountain coal project in Alberta's Crowsnest Pass region to a renewable energy complex. The company said it wants to integrate wind and hydropower at the site to produce up to 13,000 tonnes of renewable hydrogen a year, which Montem said would make Tent Mountain Canada's first large-scale green hydrogen production facility.

Montem - which is one of several coal exploration companies that had proposed new coal mines for Alberta - said it first looked into the potential for a pumped hydro energy storage facility at the Tent Mountain site in 2019, but intended to complete its originally proposed project (an open-pit coal mine on a previously worked coal deposit) first.

However, the company said it is now re-evaluating its decision. In the last two years, there has been a rush of coal exploration across the slopes and foothills of the eastern Rockies, but the companies involved have not had an easy run, encountering public protests and political and regulatory setbacks along the way.

“As a risk mitigation strategy, and to continue our business here, we thought we would look at repurposing our assets here,'' said Montem chief executive Peter Doyle in an interview. “We originally wanted to do the coal mine and do the pumped hydro at the end of its life. If we bring (the hydro project) forward, we are unlikely to produce the coal at all.''

Earlier this year, another Australian company, Benga Mining - which, of the coal companies proposing new mines for Alberta, was the farthest along in the development stage - had its Grassy Mountain coal project rejected by a joint federal-provincial review panel. A week later, Federal Environment Minister Jonathan Wilkinson also designated Montem's Tent Mountain project for federal review, saying it could release the contaminant selenium, an element commonly found in coal-bearing rock that is toxic to fish at high levels.