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Goldman Sachs makes US$250 Million Investment in Toronto Energy Company Hydrostor


January 14, 2022

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In an increasingly environmentally conscious world, energy management has become a central topic of discussion with regards to a sustainable future. Production of energy for everyday use is a significant contributor to greenhouse gas emissions and a central element of global climate change. While new sources of energy production are largely moving towards renewability and reduced carbon emissions, the storage of this energy once it is produced is equally important. Toronto company Hydrostor seeks to address this issue through their long-duration energy storage business. The company has developed a unique energy storage solution that allows for produced energy to be stored for long periods of time and released on demand. This allows electricity grid operators to better manage supply and demand thereby reducing energy waste and better matching energy production levels to actual energy needs.


In furtherance of Hydrostor’s vision for a sustainable future, the sustainable investing business division of Goldman Sachs has made a US$250 Million preferred equity financing commitment to the company. This investment is one of the largest of its kind within the long-duration energy storage business. The funds will largely be used to support the company’s infrastructure projects in Australia and California wherein they are building large scale energy management solutions for local power grids. The investment is set to be released to the company in certain tranches which will be contingent on the projects reaching certain milestones. Financing from Goldman will also be used to support further research and global marketing of the company’s offerings to customers around the world. Over the next few years, the company has set their sights on establishing an international series of energy storage projects in countries such as Canada, the United States, Australia, and Chile.


In discussing the new investment, CEO and Co-Founder of 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.” Prior to this latest round of financing, Hydrostor had seen investments from investors such as Canoe Financial, ArcTern Ventures, MaRS Catalyst Fund, Lorem Partners and Elemental Energy Inc. In addition to private support, Hydrostor has also previously received CDN$10 million in financing from the Canadian federal government through BDC capital to support its initiatives.


By: Aryan Pour-Bahreini

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