Hydrostor Announces $200 Million in Funding from Leading Investors to Accelerate Canadian and Global Deployment of its Advanced Compressed Air Energy Storage Projects
Hydrostor, a global long-duration energy storage developer, has secured a $200 million USD investment from Canada Growth Fund, Goldman Sachs Alternatives, and CPP Investments. The funding includes a $150 million USD convertible note financing commitment and an additional $50 million USD convertible development expenditure loan facility from CGF for Canadian projects.
The investment will support Hydrostor's Advanced Compressed Air Energy Storage (A-CAES) projects across North America, Australia, and Europe, including the Quinte Energy Storage Centre project in Ontario, which will provide 500 MW/4,000 MWh of storage capacity. The company's late-stage projects in New South Wales and California are scheduled to begin construction in 2025.
The A-CAES technology aims to replace fossil fuel generation with zero-emission storage and enhance renewable energy integration.
Hydrostor, un sviluppatore globale di soluzioni di stoccaggio energetico a lungo termine, ha ottenuto un investimento di 200 milioni di dollari USD dal Canada Growth Fund, Goldman Sachs Alternatives e CPP Investments. Il finanziamento comprende un impegno di finanziamento di 150 milioni di dollari USD tramite nota convertibile e un ulteriore prestito per spese di sviluppo convertibile di 50 milioni di dollari USD da CGF per progetti canadesi.
L'investimento supporterà i progetti di Stoccaggio Energetico Avanzato ad Aria Compressa (A-CAES) di Hydrostor in Nord America, Australia ed Europa, compreso il progetto Quinte Energy Storage Centre in Ontario, che fornirà 500 MW/4.000 MWh di capacità di stoccaggio. I progetti avanzati dell'azienda nel New South Wales e in California sono programmati per iniziare la costruzione nel 2025.
La tecnologia A-CAES mira a sostituire la generazione di energia da combustibili fossili con uno stoccaggio a zero emissioni e a migliorare l'integrazione delle energie rinnovabili.
Hydrostor, un desarrollador global de almacenamiento de energía a largo plazo, ha asegurado una inversión de 200 millones de dólares USD del Canada Growth Fund, Goldman Sachs Alternatives y CPP Investments. La financiación incluye un compromiso de financiación de 150 millones de dólares USD a través de un pagaré convertible y un préstamo adicional de 50 millones de dólares USD para gastos de desarrollo convertibles de CGF para proyectos canadienses.
La inversión apoyará los proyectos de Almacenamiento de Energía por Aire Comprimido Avanzado (A-CAES) de Hydrostor en América del Norte, Australia y Europa, incluido el proyecto Quinte Energy Storage Centre en Ontario, que proporcionará 500 MW/4,000 MWh de capacidad de almacenamiento. Los proyectos en etapa avanzada de la empresa en Nueva Gales del Sur y California están programados para comenzar la construcción en 2025.
La tecnología A-CAES tiene como objetivo reemplazar la generación de combustibles fósiles con almacenamiento de cero emisiones y mejorar la integración de energías renovables.
Hydrostor는 글로벌 장기 에너지 저장 개발업체로서 캐나다 성장 기금, 골드만 삭스 알터너티브, CPP 투자로부터 2억 달러 USD의 투자를 확보했습니다. 이 자금은 캐나다 프로젝트를 위한 CGF의 1억 5천만 달러 USD의 전환사채 자금 조달 약정과 추가로 5천만 달러 USD의 전환 개발 비용 대출을 포함합니다.
이 투자는 Hydrostor의 북미, 호주 및 유럽 전역의 고급 압축 공기 에너지 저장(A-CAES) 프로젝트를 지원할 것이며, 온타리오의 Quinte Energy Storage Centre 프로젝트는 500MW/4,000MWh의 저장 용량을 제공할 것입니다. 회사의 뉴사우스웨일스 및 캘리포니아의 후기 단계 프로젝트는 2025년에 건설이 시작될 예정입니다.
A-CAES 기술은 화석 연료 발전을 제로 배출 저장소로 대체하고 재생 가능 에너지 통합을 강화하는 것을 목표로 합니다.
Hydrostor, un développeur mondial de stockage d'énergie à long terme, a obtenu un investissement de 200 millions de dollars USD du Canada Growth Fund, de Goldman Sachs Alternatives et de CPP Investments. Ce financement comprend un engagement de financement de 150 millions de dollars USD sous forme de note convertible et un prêt supplémentaire de 50 millions de dollars USD pour des dépenses de développement convertibles de CGF pour des projets canadiens.
L'investissement soutiendra les projets de stockage d'énergie par air comprimé avancé (A-CAES) de Hydrostor en Amérique du Nord, en Australie et en Europe, y compris le projet Quinte Energy Storage Centre en Ontario, qui fournira une capacité de stockage de 500 MW/4 000 MWh. Les projets avancés de l'entreprise en Nouvelle-Galles du Sud et en Californie devraient commencer leur construction en 2025.
La technologie A-CAES vise à remplacer la génération d'énergie à partir de combustibles fossiles par un stockage à zéro émission et à améliorer l'intégration des énergies renouvelables.
Hydrostor, ein globaler Entwickler von Langzeit-Energiespeicherlösungen, hat eine Investition von 200 Millionen USD vom Canada Growth Fund, Goldman Sachs Alternatives und CPP Investments gesichert. Die Finanzierung umfasst ein Finanzierungsengagement von 150 Millionen USD in Form einer wandelbaren Anleihe sowie einen zusätzlichen 50 Millionen USD wandelbaren Entwicklungskostenkredit von CGF für kanadische Projekte.
Die Investition wird die Projekte von Hydrostor zur fortgeschrittenen Druckluft-Energiespeicherung (A-CAES) in Nordamerika, Australien und Europa unterstützen, einschließlich des Quinte Energy Storage Centre Projekts in Ontario, das eine Speicherkapazität von 500 MW/4.000 MWh bereitstellen wird. Die Projekte in der späten Phase des Unternehmens in New South Wales und Kalifornien sollen 2025 mit dem Bau beginnen.
Die A-CAES-Technologie zielt darauf ab, die Stromerzeugung aus fossilen Brennstoffen durch emissionsfreies Speichern zu ersetzen und die Integration erneuerbarer Energien zu verbessern.
- Secured substantial $200M funding from major institutional investors
- Large-scale project pipeline of 7 GW across multiple continents
- Construction of major projects in Australia and California to begin in 2025
- Development of significant 500 MW/4,000 MWh storage project in Ontario
- None.
Insights
This $200 million investment in Hydrostor marks a significant strategic positioning by Goldman Sachs in the rapidly expanding long-duration energy storage (LDES) market, which is projected to reach $250 billion by 2030. The investment structure is particularly noteworthy: the $150 million convertible note provides downside protection while maintaining equity upside potential, demonstrating sophisticated deal structuring that balances risk and reward.
The timing is strategic as the global energy transition accelerates. Hydrostor's Advanced Compressed Air Energy Storage (A-CAES) technology addresses a critical market gap in long-duration storage, offering 8-hour plus duration capacity that's essential for grid reliability as renewable energy penetration increases. Their 7 GW project pipeline across multiple continents represents potential contracted revenue streams in the billions, with projects in Australia and California scheduled to begin construction in 2025.
For Goldman Sachs, this investment aligns perfectly with their alternative investment strategy in three key ways:
- Market Positioning: Establishes a strong foothold in the energy storage sector alongside major institutional investors like CPP Investments
- Technology Diversification: Adds exposure to a proven but underutilized storage technology that complements existing renewable energy investments
- ESG Integration: Strengthens their green infrastructure portfolio with a technology important for global decarbonization efforts
The presence of top-tier co-investors, particularly CPP Investments and Canada Growth Fund, provides additional validation of the technology's commercial viability and reduces investment risk through shared due diligence. The near-term construction timeline for major projects in Australia and California suggests potential revenue generation within 24-36 months, offering a clearer path to returns than typical early-stage clean tech investments.
Funding round by Canada Growth Fund, Goldman Sachs Alternatives, and CPP Investments will support continued advancement of Hydrostor’s 7 GW of projects in
The transaction comprises a
“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,” said Curtis VanWalleghem, Chief Executive Officer and Co-Founder of Hydrostor.
“CGF has an ambitious mandate to support innovation and fiscally prudent economic development by attracting private investment in Canadian projects and technologies,” said Yannick Beaudoin, President and CEO of Canada Growth Fund Investment Management Inc. (“CGFIM”). “Hydrostor is a Canadian-built success story, and our team is thrilled to promote their IP and accelerate their projects in
Hydrostor’s late-stage projects in
About Hydrostor Inc.
Hydrostor is a leading developer and operator of long duration energy storage systems. Hydrostor leverages a proven technology solution for delivering long duration energy storage (eight hours or more) to power grids around the world. Hydrostor’s technology uses compressed air and water to store energy. This patented technology allows grid operators to draw on clean energy, even when there is no sun to fuel solar panels and no wind to generate energy from turbines.
Hydrostor has a successful utility scale facility commercially contracted to the Independent Electricity System Operator (IESO) located in
Founded in 2010 and with headquarters in
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To learn more, visit https://www.hydrostor.ca/.
About the Canada Growth Fund
CGF is a
For CGF’s Media relations, contact mediacgf@cgf-fcc.ca.
About Canada Growth Fund Investment Management Inc.
In Budget 2023, the Government of
About Goldman Sachs Alternatives
Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over
The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.
The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs has over
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About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in
For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.
Advisors
National Bank Financial Inc. and Rothschild & Co. acted as financial advisors to Hydrostor, and Goldman Sachs & Co. LLC acted as placement agent, in connection with the transaction.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250213265815/en/
Emily Smith
Director of External Communications, Hydrostor
703 888 7025
Source: Hydrostor Inc.
FAQ
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