Hydrostor, a developer and operator of long-duration energy storage (LDES) solutions, has secured a $200 million investment to drive the development of its Advanced Compressed Air Energy Storage (A-CAES) projects in Canada and internationally.
The investment comes from Canada Growth Fund Inc. (CGF), Goldman Sachs Alternatives, and Canada Pension Plan Investment Board (CPP Investments). It includes a $150 million (£118 million) convertible note financing commitment from the investors, alongside an additional $50 million (£40 million) convertible development expenditure loan facility from CGF to support Canadian projects. Among these is the Quinte Energy Storage Centre in Lennox and Addington County, Ontario—a 500 MW/4,000 MWh A-CAES project aimed at enhancing grid reliability.
Hydrostor’s CEO and Co-Founder, Curtis VanWalleghem, hailed the investment as a strong endorsement of the company’s technology and project pipeline. “This investment is another vote of confidence in Hydrostor’s technology and our ability to bring our initial projects to market, as well as continue to build our robust project pipeline. I’m thrilled to bring Canada Growth Fund onboard as one of our major investors, and equally as excited by the continued support for our company and our technology from Goldman Sachs and CPP Investments,” he said.
Yannick Beaudoin, President and CEO of Canada Growth Fund Investment Management Inc., highlighted CGF’s commitment to fostering innovation and economic growth through private investment. “Hydrostor is a Canadian-built success story, and our team is thrilled to promote their IP and accelerate their projects in Canada and globally,” he stated.
Hydrostor’s late-stage projects in New South Wales, Australia, and California, USA, are expected to commence construction in 2025. Its A-CAES technology is positioned as a critical component in ensuring the future reliability of global energy systems, allowing utilities to phase out fossil fuel-based generation and integrate renewable energy sources more effectively.
