Hydrostor Secures $200M To Expand Global A-CAES Projects

Hydrostor, a leading provider of long-duration energy storage solutions, has raised a strategic investment of $200 million USD from premier investors such as Canada Growth Fund Inc. (CGF), Goldman Sachs Alternatives, and Canada Pension Plan Investment Board (CPP Investments). This investment will spur the rollout of Hydrostor's Advanced Compressed Air Energy Storage (A-CAES) technology in Canada and globally, solidifying its position as a leader in the clean energy revolution.

The investment package consists of a $150 million USD convertible note financing from all three investors, along with an additional $50 million USD convertible development expenditure loan from Canada Growth Fund. This financial support will particularly bolster Canadian projects, including the development of the Quinte Energy Storage Centre, a 500 MW/4,000 MWh energy storage project located in Lennox and Addington County, Ontario. The project is anticipated to be instrumental in stabilizing the region's electricity grid as more renewable energy sources are integrated into it.

Hydrostor Co-Founder and CEO Curtis VanWalleghem highlighted the importance of the investment, commenting that it shows very strong faith in the firm's technology and execution abilities. This investment represents another vote of confidence in our technology at Hydrostor and in our capacity to take our early projects to market, as well as to grow our strong pipeline of projects," VanWalleghem added. He is also thrilled by the participation of Canada Growth Fund as a large investor, and the ongoing investment from Goldman Sachs and CPP Investments.

The firm is also growing outside of Canada, with late-stage projects in New South Wales, Australia, and California, USA, where construction is anticipated to begin in 2025. These projects represent a significant milestone for Hydrostor as it scales its A-CAES technology to enable global initiatives in renewable energy integration and grid resilience.

Canada Growth Fund, a government-supported fund aimed at driving clean technology investments, views Hydrostor's growth as an important step in advancing Canada's role in the world energy transition. Yannick Beaudoin, President and CEO of Canada Growth Fund Investment Management Inc. (CGFIM), noted the significance of this investment, saying, "Hydrostor is a Canadian success story developed here, and our team is excited to advance their IP and drive their projects in Canada and around the world."

A-CAES technology has been developed to store surplus renewable energy by compressing air and placing it in underground caverns, where it is held until required. As electricity demand increases, the stored air is expelled to produce electricity, offering a secure, zero-emission backup to conventional fossil fuel-based power storage. This technology provides a long-duration energy storage solution that improves grid resilience, enables the integration of renewable energy, and decreases reliance on fossil fuels.

The new investment in Hydrostor is consistent with global trends towards energy storage and decarbonization. Governments and private investors across the globe are increasingly supporting long-duration energy storage technologies as they see their role in enabling a clean energy future. The Quinte Energy Storage Centre in Ontario will be a key infrastructure project, providing energy security while minimizing carbon emissions.

Hydrostor's move into California and Australia further entrenches its global aspirations. In New South Wales, the firm is building an A-CAES project which will augment the state's expanding renewable energy resources, with a clean solution for supply-demand balancing. In California, where the state has aggressive clean energy targets, Hydrostor's technology will be critical in maintaining grid stability and lessening dependence on natural gas-fired power plants.

This joint venture with Goldman Sachs Alternatives, Canada Growth Fund, and CPP Investments evidences a strategic convergence with the wider energy transition movement. It is an awareness on the part of these investors of the disruptive potential of A-CAES to transform the energy landscape through the facilitation of large-scale renewable energy storage. As grids globally transition toward increased penetrations of wind and solar power, long-duration storage solutions such as A-CAES will become critical in keeping the electricity supply stable and secure.

Hydrostor's success in attracting such a large investment indicates the increasing faith in energy storage as an integral part of the clean energy economy. The investment by prominent institutional investors also demonstrates the financial soundness and scalability of A-CAES technology. With its international projects' construction commencing in 2025, Hydrostor is poised to take the lead in the global shift to clean energy storage solutions.

As the globe looks for new ways to decarbonize, Hydrostor's growth is a major milestone in the clean energy industry. With deep financial support and a solid pipeline of projects, the company is well-positioned to ramp up deployment of its innovative A-CAES technology, transforming the future of energy storage and opening the door to a cleaner, more resilient power grid.