Long-duration energy storage solution provider Hydrostor announced that it has secured $200 million in financing, with proceeds supporting the development of its projects to supplement intermittent renewable energy through its Advanced Compressed Air Energy Storage (A-CAES) technology.

The new investment includes a $150 million convertible note financing commitment from investors including Canada Growth Fund CGF, and returning investors Goldman Sachs Alternatives, and Canada Pension Plan Investment Board (CPP Investments), and an additional $50 million convertible development expenditure loan facility from CGF to fund a portion of development costs for Hydrostor’s Canadian projects.

Energy Storage forms one of the key building blocks for the clean energy transition, given the intermittent generating nature of many sources of renewable energy, such as wind and solar, and the need to satisfy round-the-clock energy demand, while ensuring that energy is not wasted.

Founded in 2010, Canada-based Hydrostor provides long-duration energy storage solutions using its patented A-CAES technology. A-CAES uses components from mining and gas operations to create a scalable energy storage system that is low-impact, cost-effective, 50+ year lifetime and can store energy from 8 hours up to multi-day storage.

The solution uses surplus energy from the grid or a renewable source to run a compressor to produce heated compressed air, with the heat subsequently extracted and stored in a proprietary thermal storage tank, while the compressed cool air is stored in a purpose-built underground water-filled hard rock cavern. When energy is needed, the air is released and pushed to the surface by the returning displaced water using gravity, where it is recombined with the stored heat, and expanded through a turbine to generate electricity.

Hydrostor currently has late stage projects in California and Australia, targeted for construction to begin in 2025, and a 7 GW pipeline including projects under development such as the 500 MW Quinte Energy Storage Centre in Canada in Ontario, Canada.

Curtis VanWalleghem, Chief Executive Officer and Co-Founder of Hydrostor, said:

“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.”

The financing marks the 11th investment for CGF, which commenced operations in 2023, capitalized with $15 billion for deployment over five years, aimed at helping develop a clean economy in Canada, and attracting private capital to help absorb risks and encourage investment in low carbon projects, technologies, businesses, and supply chains.

Yannick Beaudoin, President and CEO of Canada Growth Fund Investment Management, said:

“CGF has an ambitious mandate to support innovation and fiscally prudent economic development by attracting private investment in Canadian projects and technologies. Hydrostor is a Canadian-built success story, and our team is thrilled to promote their IP and accelerate their projects in Canada and globally.”