Hydrostor will utilise the proceeds for the construction of its A-CAES projects in Australia and California
The funding will support the expansion of Hydrostor’s project pipeline. (Credit: Hydrostor Inc.)
Canada-based long-duration energy storage solution provider Hydrostor has secured $250m investment commitment from Goldman Sachs.
The preferred equity financing commitment has been made by the Private Equity and Sustainable Investing businesses within Goldman Sachs Asset Management.
Hydrostor will utilise the proceeds for the development and construction of its 1.1GW, 8.7GWh of Advanced Compressed Air Energy Storage (A-CAES) projects in Australia and California.
The investment is also expected to support Hydrostor’s global development and marketing initiatives.
Hydrostor co-founder and CEO Curtis VanWalleghem 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.”
Goldman Sachs is expected to make the investment in tranches based on certain milestones to match Hydrostor’s capital requirements and speed up project execution.
The funding will also support the expansion of Hydrostor’s project pipeline and capabilities in markets with near-term demand for long-duration energy storage.
Goldman Sachs Asset Management’s energy transition private equity investing partner and head Charlie Gailliot 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.”
Fort Capital Partners and CIBC Capital Markets served as financial advisors to Hydrostor in connection with the transaction, while Davies Ward Phillips & Vineberg acted as its legal counsel.
In August last year, Hydrostor has secured C$10m ($7.9m) of growth capital from BDC Capital to advance its pipeline of A-CAES projects.