Goldman Sachs bets big on long-duration energy storage; invests $250M in Hydrostor

In a record deal pegged to be one of the largest investments in long-duration energy storage, Goldman Sachs  Asset Management  (Goldman Sachs) has invested US$250 million in long-duration energy storage energy solutions provider, Hydrostor, Inc. (Hydrostor).

On Monday, Hydrostor announced it has secured a preferred equity financing commitment of US$250 million from the Private Equity and Sustainable Investing businesses within Goldman Sachs Asset Management. 

The company confirmed that the investment proceeds will be used for the development and construction of Hydrostor's 1.1GW, 8.7GWh of Advanced Compressed Air Energy Storage ("A-CAES") projects in Australia and California which is already underway, and to expand Hydrostor's project development pipeline globally.

"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," Curtis VanWalleghem, CEO & Co-Founder of Hydrostor, said.

Mr. VanWalleghem thanked the existing investors including various agencies of the Government of Canada.

Hydrostor's existing investors include ArcTern Ventures, Lorem Partners, Canoe Financial, and Business Development Bank of Canada. 

"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," said Charlie Gailliot, Partner and Head of Energy Transition Private Equity Investing within Goldman Sachs.

"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."