Canadian long-duration energy storage solution provider Hydrostor has received a $250m preferred equity financing commitment from the private equity and sustainable investing businesses within Goldman Sachs Asset Management.

The proceeds will be used for the construction works of Hydrostor’s 1.1GW/8.7GWh advanced compressed air energy storage (A-CAES) projects in Australia and California.

The investment will also increase the company’s global project development pipeline.

The financing will help the company to enhance its capabilities in markets with near-term demand for long-duration energy storage. 

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.

“I would like to thank our existing investors, including ArcTern Ventures, Lorem Partners, Canoe Financial, and Business Development Bank of Canada, all of whom will remain our partners.

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“Hydrostor’s evolution has been made possible by their support and support from various agencies of the Government of Canada.”

Goldman Sachs has agreed to provide its investment in tranches upon achieving certain project milestones.

Goldman Sachs Asset Management Energy Transition Private Equity Investing head and partner 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.”  

Hydrostor has a 50% ownership stake in the Broken Hill Hydrostor Project-Compressed Air Energy Storage System in Broken Hill, New South Wales.