The Victorian Government has announced that Canadian renewable energy company Hydrostor will open its Melbourne headquarters, establishing its presence in Australia.
Minister for Trade and Investment Tim Pallas has announced the move, noting that Hydrostor setting up its regional headquarters in Melbourne will enhance the State’s renewable energy sector.
“We are a leader in innovation and renewables and that’s why companies like Hydrostor want to be here. These investments are growing the state’s tech capabilities and creating jobs,” Minister Pallas said.
The Silver City Energy Storage Centre near Broken Hill is owned and developed by Hydrostor, with an investment decision for additional regional growth planned later this year.
According to the State Government, the company chose Victoria as its Asia Pacific headquarters owing to the State’s strong R&D skills, booming renewable energy sector, commitment to reaching net-zero emissions by 2045, and Government support.
The State Government added that the Toronto-based company is a pioneer in developing zero-emission energy storage, producing Advanced Compressed Air Energy Storage for use with its unique technology.
“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,” Hydrostor Curtis VanWalleghem said.
The process generates heated compressed air from low-cost grid surplus power and stores it in a purpose-built cavern deep underground, providing an alternative to Pumped Hydro Energy Storage for bulk long-term energy storage.
Compressed air is converted to electricity via a turbine when power is required, resulting in enhanced efficiency and eliminating the need for fossil fuels during operation.
Hydrostor has 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 company.
According to fDi Markets data, Victoria will receive $8.9 billion in international investment in 2022. Investment in the Victorian renewable energy sector alone totalled $5.1 billion.
“We’re proud that our ambitious climate agenda and nation-leading emissions reduction targets of 75-80 per cent by 2035 and net zero by 2045 are attracting investment from companies from around the world,” Minister for Energy and Resources Lily D’Ambrosio said.
