Why Compressed Air Storage Could Be the Key to 24/7 Renewable Power with Hydrostor CEO Curtis VanWalleghem
A New Era in Energy Storage
Hydrostor uses a patented system to store energy using air, water, and rock—essentially creating a “water-weighted” air battery deep underground. “We push air down to lift the water up and hold it as potential energy,” explained VanWalleghem. “When the grid needs power, we open a valve, spin a turbine, and generate electricity.” Unlike traditional lithium-ion batteries, Hydrostor’s solution lasts for decades and avoids costly and rare materials.
The Goderich Energy Storage Centre, located in Ontario, Canada is the world’s first commercially contracted Advanced Compressed Air Energy Storage facility. Hydrostor photo.
Policy Catch-Up
While the technology is gaining momentum, policy has struggled to keep pace. “The biggest barrier has been the revenue pathway,” said VanWalleghem. “Utilities don’t want to pay for long-duration storage until they absolutely need it.” Encouragingly, that’s beginning to change. Jurisdictions like California, Australia, and New York are developing procurement mandates and incentives for 8+ hour storage.
Cost and Efficiency: A Strong Case
Hydrostor claims major cost advantages once storage durations exceed eight hours. “Our marginal cost per hour is about $50 per kilowatt-hour, while batteries are closer to $300 fully installed,” VanWalleghem noted. “We last 50 years, while batteries degrade and last 10 to 15.”
Global Projects and Long-Term Vision
From a 200 MW project in Australia to a planned 500 MW facility in California, Hydrostor is scaling up quickly. “We’re backed by Goldman Sachs and the Canadian Pension Plan and developing projects across North America, Australia, and Europe,” said VanWalleghem. He also emphasized their systems’ adaptability: “We can add more caverns later to extend storage from 8 to 20 hours or even retrofit to use hydrogen.”
Silver City is a 200 MW Advanced Compressed Air Energy Storage (A-CAES) facility that is under late-stage development in Broken Hill, New South Wales, Australia. Hydrostor rendering.
Environmental Benefits and Public Support
Hydrostor’s system uses minimal water—just one-twentieth of what pumped hydro requires—and even produces clean water during operation. “It’s a closed-loop system and gets strong support from communities and environmental groups,” VanWalleghem added.
As energy grids evolve, VanWalleghem believes Hydrostor’s scalable, low-impact, and long-lived technology could be a linchpin. “Energy storage isn’t a silver bullet, but we’re one of the proven, bankable tools that can help firm up renewables—and get us closer to net zero.”
Listeners can learn more at hydrostor.ca.