Minister for Trade and Investment Tim Pallas announced that Hydrostor, a Toronto-based clean energy innovator, is slated to set up its regional headquarters in Melbourne, enhancing the state’s renewable energy sector.
In a news release, the Victorian government revealed that Hydrostor develops emission-free energy storage, manufacturing the Advanced Compressed Air Energy Storage that is used with its proprietary technology.
The firm said it selected Victoria as its Asia Pacific headquarters owing to the state’s strong R&D skills, booming renewable energy sector, promise to reach net zero emissions by 2045, and Labor Government support.
In particular, Hydrostor’s technology generates heated compressed air from low-cost grid surplus power and stores it in a purpose-built cavern deep below, providing an alternative to Pumped Hydro Energy Storage for bulk long-term energy storage.
When power is required, compressed air is converted to electricity via a turbine, resulting in enhanced efficiency and the elimination of the need for fossil fuels during operation.
Minister Pallas said investments of this nature increase the state’s technological capacity and generate employment.
Minister for Energy and Resources Lily D’Ambrosio expressed her excitement that Australia’s ambitious climate strategy and emissions reduction objectives of 75 to 80 per cent by 2035 and net zero by 2045 are attracting investment from throughout the world.
Meanwhile, the CEO of Hydrostor Curtis VanWalleghem also commented on the recent announcement.
“Compressed Air Energy Storage is a vital component of the clean energy transition to achieve net-zero emissions and we are committed to bringing low-impact solutions to communities throughout Australia,” noted VanWalleghem.
Hydrostor has recently inked a 25-year power purchase deal with a utility company in California.
Goldman Sachs Asset Management, the Canadian Pension Plan, and the Business Development Bank of Canada are all investors in the firm.
According to fDi Markets data, Victoria will receive $8.9 billion in international investment in 2022, much outpacing New South Wales ($6.3 billion).
Investment in the Victorian renewable energy sector alone totalled $5.1 billion.
