Hydrostor Announces $200 Million in Funding to Accelerate Deployment of its Advanced Compressed Air Energy Storage Projects
February 24, 2025
Hydrostor, a global long-duration energy storage (LDES) developer and operator, has secured a $200 million USD investment from Canada Growth Fund Inc. (CGF), Goldman Sachs Alternatives (Goldman Sachs), and Canada Pension Plan Investment Board (CPP Investments). The transaction will support Hydrostor’s continued investment in Advanced Compressed Air Energy Storage (A-CAES) projects in Canada and around the world.
The transaction comprises a $150 million USD convertible note financing commitment from the above investors. In addition, CGF has made available an additional $50 million USD convertible development expenditure loan facility to fund a portion of development costs for Hydrostor’s Canadian projects, such as the Quinte Energy Storage Centre project, a 500 MW/4,000 MWh A-CAES project to be developed in Lennox and Addington County, Ontario.
“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 Canada and globally.”
Hydrostor’s late-stage projects in New South Wales, Australia, and California, USA, are targeted to begin construction in 2025. Its A-CAES technology represents a critical solution underpinning the future reliability of energy systems globally, enabling utilities to replace end-of-life fossil generation with zero-emission storage and accelerate the integration of intermittent renewables.
