Hydrostor, Inc., a provider of long-life energy storage solutions, announced a preferred equity financing commitment of US$250 million from the private equity and sustainable investing businesses within Goldman Sachs Asset Management.
Proceeds from the investment will be used to support the development and construction of Hydrostor’s 1.1 GW and 8.7 GWh Advanced Compressed Air Energy Storage (“A-CAES”) projects in Australia and California, which are well advanced, and to expand Hydrostor’s project development pipeline globally. .
Goldman Sachs will fund its investment in stage-linked tranches to meet Hydrostor’s capital needs and accelerate project execution throughout development, construction and operation alongside Hydrostor’s development partners. Hydrostore. The funding will also support Hydrostor’s global development and commercialization initiatives, including expanding its project pipeline and capabilities in markets with significant near-term demand for long-duration energy storage at flexible location.
“We are delighted with this investment from Goldman Sachs. This is a transformation for Hydrostor and validates the competitiveness of our proprietary A-CAES solution as well as the strength of our potential project pipeline. said Curtis VanWalleghem, CEO and co-founder of Hydrostor. “I would like to thank our current investors, including ArcTern Ventures, Lorem Partners, Canoe Financial and the Business Development Bank of Canada, who will all remain our partners. The evolution of Hydrostor was made possible through their support and the support of various Government of Canada agencies. I would also like to thank outgoing directors Elisabeth Hivon and Tom Rand for their service and welcome Charlie Gailliot, Sébastien Gagnon and Gunduz Shirin of Goldman Sachs to our board.
“As the world continues to transition to sustainable and renewable energy sources, the need for utility-scale long-term 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 next few years and leveraging our company’s global platform to support the growth of Hydrostor, which will play a pivotal role in the ongoing energy transition.” said Charlie Gailliot, partner and head of energy transition private equity. investment, Goldman Sachs Asset Management.
Fort Capital Partners and CIBC Capital Markets acted as financial advisors to Hydrostor, and Davies Ward Phillips & Vineberg LLP acted as legal advisor.