From: Mercom India
Hydrostor, a developer and operator of compressed air energy-based long-duration energy storage systems, has secured a $230 million equity investment from existing and new investors.
The investment includes previously announced funding from a convertible note committed by Canada Growth Fund, Goldman Sachs Alternatives, and Canada Pension Plan Investment Board.
Additional funding came through a strategic equity round involving Baker Hughes, Hatch, Realize Capital Partners, a Social Finance Fund wholesaler, and other investors.
National Bank of Canada Capital Markets and Rothschild & Co. acted as financial advisers to Hydrostor in connection with the transaction. Goldman Sachs & Co acted as placement agent.
Hydrostor develops LDES systems using advanced compressed air energy storage technology. The technology uses compressed air and water to store energy for delivery to power grids. The company plans to use the funding to advance the development of its 7 GW global pipeline of advanced compressed air energy storage projects.
“The grid needs bankable long-duration energy storage that can be deployed today to enable affordable and reliable electricity for all, and Hydrostor’s continued fundraising success is a testament to the potential of our A-CAES technology to get us there,” said Curtis VanWalleghem, Chief Executive Officer and Co-Founder of Hydrostor. “We’re excited to bring in sophisticated partners who understand the role Hydrostor will play in modernizing the grid.”
The funding will also support the company’s 500 MW Willow Rock Energy Storage Center in the U.S. as it moves toward financial close later this year. The project has received the necessary permits for development and plans to begin construction later this year.
In January, Terralayr, a developer, owner, and operator of battery energy storage assets, raised €192 million (~$223 million) in an equity round, including an €80 million (~$93 million) upsizing option, led by Eurazeo, through its Eurazeo Transition Infrastructure Fund, RIVE Private Investment, Creandum, Norrsken, Earlybird Venture Capital, and Picus Capital.
According to Mercom’s recently released 1H 2026 Funding and M&A for Energy Storage report, VC funding for energy storage companies in 1H 2026 totaled $1.6 billion across 51 deals, representing a 6% YoY decline compared to the $1.7 billion raised across 36 deals in 1H 2025.
