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Hydrostor Inc. (“Hydrostor”), a leading long-duration energy storage solution provider, has announced a  preferred equity financing commitment of US$250 million (“the Financing”) from the Private Equity and Sustainable Investing businesses within Goldman Sachs Asset Management (“Goldman Sachs”).

The investment proceeds will be used to support development and construction of Hydrostor’s 1.1GW, 8.7GWh of Advanced Compressed Air Energy Storage (“A-CAES”) projects in Australia and California that are well underway, and to expand Hydrostor’s project development pipeline globally. The financing will also enable Hydrostor to expand its development and marketing capabilities globally to markets with significant and fast-growing demand for long-duration, flexibly sited energy storage.

Curtis VanWalleghem, Chief Executive Officer, Hydrostor, 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.”

Charlie Gailliot, Partner and Head of Energy Transition Private Equity Investing within Goldman Sachs Asset Management, 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 been supported by numerous investors, including ArcTern Ventures, Baker Hughes, Lorem Partners, Canoe Financial, and Business Development Bank of Canada. This financing represents a pivotal transition for Hydrostor as it pursues the development and construction of its A-CAES projects globally.

Fort Capital Partners and CIBC Capital Markets acted as financial advisors to Hydrostor, and Davies Ward Phillips & Vineberg served as legal counsel.