Key Highlights:
- Hydrostor has received an investment commitment of $25 million from the Canada Pension Plan Investment Board (CPP).
- Hydrostor had recently locked an investment of $250 million from Goldman Sachs.
- Hydrostor investment is considerably low in terms of deal size for CPP.
Hydrostor has received an investment commitment of $25 million from the Canada Pension Plan Investment Board (CPP). Hydrostor is among the leading compressed air long-duration energy storage solution provider.
Hydrostor had recently locked an investment of $250 million from Goldman Sachs and now after three months has received another investment.
Hydrostor utilizing the funds from CPP
The company shared that the money raised from CPP will be used to support the strategy of developing, constructing, and operating advanced compressed air energy storage (A-CAES) facilities. Currently, Hydrostor has one commercially operating 2.2MW/10MWh+ system which came online in 2019 in Ontario. However, the company claims that 1.1GW/8.7GWh of projects are underway in Australia and California.
The Head of Sustainable Energies, Managing Director of CPP Investments, Bruce Hogg, shared, “Long-duration energy storage is a critical component in the decarbonization of electrical grids. Hydrostor’s solutions are well-placed to address this growing need and provide a unique investment opportunity aligned with our focus on the energy evolution.”
CPP investments and other deals
CPP is managing a fund collected from the pension contributions of 21 million people in the Canada Pension Plan. The company has managed to collect a fund of a total of $440 billion by the end of 2021.
CPP has invested by far in 18 companies that belong to the Sustainable Energies within its Real Assets portfolio. It includes UK-based sustainable energy group Octopus Energy which it invested in late last year.
As compared to the other investments and deals, Hydrostor investment is considerably low in terms of deal size for CPP. CPP’s smallest deal size in the existing portfolio was disclosed to be starting at $200 million.
