{"id":10423,"date":"2022-01-17T07:09:31","date_gmt":"2022-01-17T06:09:31","guid":{"rendered":"https:\/\/thesmartcityjournal.cibeles.net\/sin-categoria\/goldman-sachs-invests-us-250-million-in-long-duration-energy-storage-provider\/"},"modified":"2022-01-16T20:15:35","modified_gmt":"2022-01-16T19:15:35","slug":"goldman-sachs-invests-us-250-million-in-long-duration-energy-storage-provider","status":"publish","type":"post","link":"https:\/\/www.thesmartcityjournal.com\/en\/sustainability\/goldman-sachs-invests-us-250-million-in-long-duration-energy-storage-provider","title":{"rendered":"Goldman Sachs invests US$250 million in long-duration energy storage provider"},"content":{"rendered":"<p class=\"lead\"><em>Hydrostor is commercialising its proprietary compressed air energy storage technology<\/em><\/p>\n<p>The asset management group of investment banking firm <strong>Goldman Sachs<\/strong> is making a US$250 million investment into advanced compressed air energy storage (A-CAES) company <strong>Hydrostor<\/strong>.<\/p>\n<p>The preferred equity financing commitment comes from <strong>Goldman Sachs Asset Management\u2019s Private Equity and Sustainable Investing <\/strong>businesses. It will be paid out in tranches tied to project milestones being achieved by Ontario, Canada-headquartered <strong>Hydrostor<\/strong>.&nbsp;<\/p>\n<p><strong>Hydrostor<\/strong> is commercialising its proprietary compressed air energy storage technology, claiming it can be a cost-effective long-duration energy storage solution. While the company has to date only built one commercially operating&nbsp;<a href=\"https:\/\/www.energy-storage.news\/grid-connected-advanced-compressed-air-energy-storage-plant-comes-online-in-ontario\/\">2.2MW \/ 10MWh+ system which came online in 2019 in Ontario<\/a>, it currently has 1.1GW \/ 8.7GWh of projects in Australia and California which are claimed to be \u201cwell underway\u201d.<\/p>\n<p>The fresh investment will support the development and construction of those projects, and expand <strong>Hydrostor<\/strong>\u2019s global development pipeline.<\/p>\n<p>As early as 2017, consultancy&nbsp;<a href=\"https:\/\/www.energy-storage.news\/morgan-stanley-and-deloitte-pinpoint-potential-of-energy-storage\/\">Deloitte identified the company\u2019s Ontario pilot scheme as an example o<\/a>f innovation and technological improvement in the energy storage space, as&nbsp;<em>Energy-Storage.news<\/em>&nbsp;reported at the time.&nbsp;<\/p>\n<p>Later that year, <strong>Hydrostor<\/strong> unveiled <strong>Hydrostor Terra<\/strong>, its energy storage system solution aimed at providing bulk&nbsp;<a href=\"https:\/\/www.energy-storage.news\/hydrostor-launches-new-terra-bulk-energy-storage-system\/\">long-duration storage at a cost competitive with natural gas plants<\/a>. Basically, the compressed air system turns off-peak electricity into compressed air, stored in an isobaric underground cavern.&nbsp;<\/p>\n<p>As it charges, it also stores heat generated by the compression process in an adiabatic thermal management system. This use of thermal energy is part of the \u2018A\u2019 in A-CAES, giving it better round trip efficiency than other compressed air technologies, according to Hydrostor. The existing Ontario project serves multiple applications, including peaking capacity and ancillary services.&nbsp;<\/p>\n<p><strong>Hydrostor<\/strong> got some funding from the <strong>Australian Renewable Energy Agency (ARENA)<\/strong> and the South Australian government\u2019s <strong>Renewable Energy Technology Fund<\/strong> in 2017 and last year&nbsp;<em>Energy-Storage.news<\/em>&nbsp;reported that the Canadian government had pledged&nbsp;<a href=\"https:\/\/www.energy-storage.news\/advanced-compressed-air-energy-storage-project-gets-funding-help-from-canadian-government\/\">financial support to the company for a planned 300MW \u2013 500MW project<\/a>&nbsp;at an unnamed location.&nbsp;<\/p>\n<p>The <strong>A-CAES<\/strong> company secured CA$10 million (US$8 million) of growth capital last summer and filed applications with the <strong>California Energy Commission (CEC)<\/strong> to get licensing approval for two California projects,&nbsp;<a href=\"https:\/\/www.energy-storage.news\/hydrostor-seeks-approval-for-3-2gwh-compressed-air-storage-facility-in-california\/\">one of 400MW \/ 3.2GWh in November<\/a>&nbsp;and another of&nbsp;<a href=\"https:\/\/www.energy-storage.news\/hydrostor-applies-for-license-for-4gwh-california-compressed-air-storage-project\/\">500MW \/ 4,000MWh in December<\/a>.&nbsp;<\/p>\n<p>A report by <strong>ACIL Allen<\/strong>, a consulting group, completed a third-party study last June which found a <strong>200MW \/ 1,600MWh A-CAES<\/strong> project proposed in a remote part of South Australia could contribute more than&nbsp;<a href=\"https:\/\/www.energy-storage.news\/roundup-long-duration-energy-storage-investments-and-assessments\/\">half a billion dollars to the local economy while making local electricity networks more stable.<\/a><\/p>\n<h2 class=\"article-title\">Interest in long-duration energy storage<\/h2>\n<p><strong>Goldman Sachs Asset Management<\/strong>\u2019s investment, which is thought to be among the largest commitments by a single investor into a long-duration energy storage company, will help <strong>Hydrostor<\/strong> accelerate project execution through development, construction and operations, together with the company\u2019s existing investors and partners.&nbsp;<\/p>\n<p>The funds will also be used to support Hydrostor\u2019s development and marketing activities in markets which have identified a near-term demand for long-duration energy storage.&nbsp;<\/p>\n<p>Last year, <strong>Form Energy<\/strong>, a startup with a novel iron-air chemistry long-duration&nbsp;<a href=\"https:\/\/www.energy-storage.news\/iron-air-long-duration-battery-startup-form-energy-closes-us240-million-funding-round\/\">energy storage technology raised US$240 million in a funding round<\/a>, while gravity-based storage startup&nbsp;<a href=\"https:\/\/www.energy-storage.news\/energy-vault-raises-us100m-investment-for-energy-storage-using-massive-cranes\/\">Energy Vault raised US$100 million in a Series C funding round<\/a>. <strong>Energy Vault<\/strong> last week added <strong>Korea Zinc<\/strong> to a list of investors that includes <strong>Saudi Aramco<\/strong> and <strong>Softbank Ventures<\/strong>.&nbsp;<\/p>\n<p>Other recipients of investment in the long-duration energy storage space include various flow battery, thermal and mechanical energy storage technology companies. Last year at&nbsp;<a href=\"https:\/\/www.energy-storage.news\/bp-breakthrough-energy-ventures-in-long-duration-energy-storage-council-launching-at-cop26\/\">COP26 the Long-Duration Energy Storage Council was launched<\/a>&nbsp;representing 16 of those companies among its 24 founding member organisations.<\/p>\n<p>In&nbsp;<em>Energy-Storage.news\u2019<\/em>&nbsp;\u2018Year in review 2021\u2019 series of recent articles on the state of play in the industry, EPC firm Burns &amp; McDonnell and developer Recurrent Energy \u2014 key players in the downstream deployment end of the sector \u2014&nbsp;<a href=\"https:\/\/www.energy-storage.news\/year-in-review-2021-downstream-ess-players-burns-mcdonnell-recurrent-energy\/\">highlighted the rising interest in and expected growth in demand for long-duration energy storage<\/a>. &nbsp;<\/p>\n<p>Source: <a href=\"https:\/\/www.energy-storage.news\/author\/andy-colthorpe\/\">Andy Colthorpe<\/a> (Energy Storage News)<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hydrostor is commercialising its proprietary compressed air energy storage technology The asset management group of investment banking firm Goldman Sachs is making a US$250 million investment into advanced compressed air energy storage (A-CAES) company Hydrostor. The preferred equity financing commitment comes from Goldman Sachs Asset Management\u2019s Private Equity and Sustainable Investing businesses. It will be\u2026<\/p>\n","protected":false},"author":2,"featured_media":10422,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_scj_primary_category_id":60,"_scj_featured":false,"_scj_featured_from":"","_scj_featured_until":"","_scj_featured_order":0,"_scj_visibility_class":"current","_scj_layout_family":"standard","_scj_article_style":"","_scj_display_overrides":[],"_scj_intro_image_id":10422,"_scj_intro_alt":"Goldman Sachs invests US$250 million in long-duration energy storage provider","_scj_intro_caption":"","_scj_intro_class":"","_scj_intro_float":"","_scj_full_image_id":10422,"_scj_full_alt":"Goldman Sachs invests US$250 million in long-duration energy storage 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