The investment will drive Hydrostor’s expansion of A-CAES projects in Canada and worldwide.

Hydrostor, a developer and operator of long-duration energy storage (LDES), has secured a $200m investment from the Canada Growth Fund (CGF), Goldman Sachs Alternatives and the Canada Pension Plan Investment Board (CPP Investments).

The funding will support Hydrostor’s ongoing investment in A-CAES [advanced compressed air energy storage] projects in Canada and globally.

It includes a $150m convertible note financing commitment from investors and a $50m convertible development expenditure loan facility by CGF.

CGF’s loan will cover part of the development costs for Hydrostor’s Canadian projects, including the Quinte Energy Storage centre – a 500MW/4,000 megawatt hours (MWh) advanced compressed air energy storage (A-CAES) project in Lennox and Addington County, Ontario.

Hydrostor chief executive officer and co-founder Curtis VanWalleghem stated: “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.”

Hydrostor’s late-stage projects in New South Wales, Australia, and California, US, are scheduled to begin construction in 2025.

Its A-CAES technology supports energy storage, helping utilities transition from fossil fuel generation to renewable energy sources.

Canada Growth Fund Investment Management president and CEO Yannick Beaudoin added: “CGF has an ambitious mandate to support innovation and fiscally prudent economic development by attracting private investment in Canadian projects and technologies.”

“Hydrostor is a Canadian-built success story, and our team is thrilled to promote their IP [intellectual property] and accelerate their projects in Canada and globally.”