Goldman Sachs has made a $250 million investment in Hydrostor, a Canadian firm that is developing underground advanced compressed air energy storage (A-CAES) devices to assist balance energy supply and demand.
The funding will help Hydrostor complete the projects it is presently working on in Australia and California, which will have a total energy storage capacity of 8.7GWh and a power output of 1.1GW. The funding will also aid in the start-up of new projects and will be connected to certain project milestones based on Hydrostor’s financial requirements.
The A-CAES systems from Hydrostor convert an intermittent energy supply from renewable sources such as solar farms and wind turbines into an on-demand source by storing it for release when needed.
The need to deliver
The A-CAES systems of the firm compress air and then store it underground, utilising water to hydrostatically maintain pressure and store energy. The compressed air is pumped into deep caverns by hydrostor systems, where it displaces water, which flows up into a lake on the surface. When air is compressed, heat is produced, which is collected and stored so that it may be utilised when the gas is allowed to expand again.
Hydrostor has a commercially running A-CAES installation in Goderich, Ontario, Canada, and three more projects in the works: the 500MW Gem in California, the 200MW Broken Hill in New South Wales, and the 400MW Pecho in California, with total capacities of 4,000 MWh, 1,600 MWh, and 3,200 MWh.
Compressed air storage is a key contender for addressing the challenge of matching intermittent power supplies to grid needs, possibly allowing variable supplies from sources such as wind farms to totally meet continuous power use by customers such as data centers.
“We are happy with this investment by Goldman Sachs,” stated Curtis VanWalleghem, CEO and co-founder of Hydrostor. It is transformative for Hydrostor and proves both the competitiveness of our patented A-CAES technology and the robustness of our pipeline of new projects.”
“As the world continues to transition 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,” said Charlie Gailliot, partner and head of energy transition private equity investing at Goldman Sachs Asset Management.
Existing investors in Hyrdostor include ArcTern Ventures, Lorem Partners, Canoe Financial, and Business Development Bank of Canada.
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