Funding round by Canada Growth Fund, Goldman Sachs Alternatives, and CPP Investments will support continued advancement of Hydrostor’s 7 GW of projects in North America, Australia, and Europe

February 13, 2025 03:09 PM Eastern Standard Time

TORONTO–(BUSINESS WIRE)–Hydrostor, a global long-duration energy storage (LDES) developer and operator, has secured a $200 million USD investment from Canada Growth Fund Inc. (“CGF”), Goldman Sachs Alternatives (“Goldman Sachs”), and Canada Pension Plan Investment Board (“CPP Investments”). The transaction will support Hydrostor’s continued investment in Advanced Compressed Air Energy Storage (A-CAES) projects in Canada and around the world.

“CGF has an ambitious mandate to support innovation and fiscally prudent economic development by attracting private investment in Canadian projects and technologies”Post this

The transaction comprises a $150 million USD convertible note financing commitment from the above investors. In addition, CGF has made available an additional $50 million USD convertible development expenditure loan facility to fund a portion of development costs for Hydrostor’s Canadian projects, such as the Quinte Energy Storage Centre project, a 500 MW/4,000 MWh A-CAES project to be developed in Lennox and Addington County, Ontario.

“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,” said Curtis VanWalleghem, Chief Executive Officer and Co-Founder of Hydrostor.

“CGF has an ambitious mandate to support innovation and fiscally prudent economic development by attracting private investment in Canadian projects and technologies,” said Yannick Beaudoin, President and CEO of Canada Growth Fund Investment Management Inc. (“CGFIM”). “Hydrostor is a Canadian-built success story, and our team is thrilled to promote their IP and accelerate their projects in Canada and globally.”

Hydrostor’s late-stage projects in New South Wales, Australia, and California, USA, are targeted to begin construction in 2025. Its A-CAES technology represents a critical solution underpinning the future reliability of energy systems globally, enabling utilities to replace end-of-life fossil generation with zero-emission storage and accelerate the integration of intermittent renewables.

About Hydrostor Inc.

Hydrostor is a leading developer and operator of long duration energy storage systems. Hydrostor leverages a proven technology solution for delivering long duration energy storage (eight hours or more) to power grids around the world. Hydrostor’s technology uses compressed air and water to store energy. This patented technology allows grid operators to draw on clean energy, even when there is no sun to fuel solar panels and no wind to generate energy from turbines.

Hydrostor has a successful utility scale facility commercially contracted to the Independent Electricity System Operator (IESO) located in Goderich, Ontario, and two advanced projects under development in Kern County, California and New South Wales, Australia. Hydrostor has an extensive pipeline of early-stage projects in North America, Australia, and Europe.

Founded in 2010 and with headquarters in Toronto, Canada and offices in Melbourne, Australia, and Denver, USA, Hydrostor is backed by Goldman Sachs Alternatives, CPP Investments, Canada Growth Fund and other forward-thinking institutional investors, providing financial security to commit to top-tier energy projects.

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To learn more, visit https://www.hydrostor.ca/.

About the Canada Growth Fund

CGF is a $15 billion arm’s length public investment vehicle that helps attract private capital to build Canada’s clean economy by using investment instruments that absorb certain risks, in order to encourage private investment in low carbon projects, technologies, businesses, and supply chains. Further information on CGF’s mandate, strategic objectives, investment selection criteria, scope of investment activities, and range of investment instruments can be found on www.cgf-fcc.ca.

For CGF’s Media relations, contact mediacgf@cgf-fcc.ca.

About Canada Growth Fund Investment Management Inc.

In Budget 2023, the Government of Canada announced that PSP Investments, through a wholly-owned subsidiary, would act as the asset manager for CGF. Canada Growth Fund Investment Management Inc. has been incorporated to act as the independent and exclusive asset manager for CGF.

About Goldman Sachs Alternatives

Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $450 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, hedge funds and sustainability. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.

The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.

The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs has over $2.8 trillion in assets under supervision globally as of December 31, 2023.

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About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2024, the Fund totaled C$699.6 billion.

For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

Advisors

National Bank Financial Inc. and Rothschild & Co. acted as financial advisors to Hydrostor, and Goldman Sachs & Co. LLC acted as placement agent, in connection with the transaction.

Osler, Hoskin & Harcourt LLP acted as advisors to CGF and Canada Growth Fund Investment Management Inc. in connection with CGF’s investment.

Contacts

Emily Smith
Director of External Communications, Hydrostor
703 888 7025

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