Long-duration energy storage solution provider Hydrostor announced today that it has received a $250 million preferred equity financing commitment from Goldman Sachs Asset Management. Proceeds from the investment will support the development of energy storage projects in Australia and California, and the expansion of the company’s project development pipeline globally.
Energy storage solutions are emerging as a key energy transition investment area. Storage forms one of the key building blocks for the rapidly expanding 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.
Canada-based Hydrostor provides long-duration energy storage solutions using its patented Compressed Air Energy Storage (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 5 hours up to multi-day storage.
The company has projects worldwide in various development stages, including 1.1 GW, 8.7 GWh of A-CAES projects in Australia and California.
Curtis VanWalleghem, Chief Executive Officer & Co-Founder of Hydrostor, said:
“We are delighted with this investment by Goldman Sachs. It is transformational for Hydrostor and validates the competitiveness of our proprietary A-CAES solution as well as the strength of our pipeline of potential projects.”
According to Hydrostor, Goldman Sachs will fund its investment in tranches tied to project milestones to match Hydrostor’s capital needs and accelerate project execution throughout development, construction, and operations. Additionally, the funding will also support Hydrostor’s global development and marketing initiatives.
Charlie Gailliot, Partner and Head of Energy Transition Private Equity Investing within Goldman Sachs Asset Management, said:
“As the world continues transitioning to sustainable and renewable energy sources, the need for utility-scale long-duration energy storage is clear, and Hydrostor’s A-CAES solution is well positioned to become a leading player in this emerging global market. We look forward to working with the Hydrostor team over the coming years and leveraging our firm’s global platform to support Hydrostor’s growth, which will play a central role in the ongoing energy transition.”