Hydrostor
Presenter:
Curtis VanWalleghem, Chief Executive Officer
Email:
curt@hydrostor.ca
Phone:
1-416-567-2695
Website:
http://www.hydrostor.ca
Address:
542 Parliament St
Toronto, ON, M4X 1P6
Canada
Year Founded:
2010
Industry Sector:
Cleantech Category:
Company Overview:
Hydrostor has developed a low-cost, scalable energy storage technology based on proven compressed air technology (CAES). What makes our design unique, is we store the air underwater, which reduces costs and enables the technology to be deployed at smaller scales. We will use this technology to reduce electricity costs in coastal communities large and small.
Markets & Applications:
Our target markets are large coastal cities, island nations, mines, resorts, and remote coastal communities.
For large coastal cities our solution enables utilities to defer transmission investment, better integrate renewable generation, and facility price arbitrage. 50% of the largest cities are located on a body of water.
For remote off-grid communities that currently rely on expensive diesel generation, our solution will be packaged with renewable generation to provide a lower cost 100% renewable alternative. There are thousands of these off-grid communities, including over 100 located just in Canada.
Technology & Products:
By taking advantage of components established in natural gas and marine industries, we have been able to develop a system that provides days worth of storage at low cost. The system operates by storing compressed air in flexible underwater accumulators secured to the floor of water by a temporary anchoring system. The above-water portion draws air from the environment, compresses it, and capture the heat released during compression. When the stored electricity is required, the weight of the water pushes the air back to shore where it collects the stored heat and turns a turbine before releasing the air back to the environment. This system can draw electricity from any grid, or be paired with any renewable for of generation (wind, solar, hydro, tidal, geothermal).
Sustainable Competitive Advantage:
Hydrostor's solution is half the price of batteries, and lower cost than aboveground compressed air due to our lower-cost pressure cavity, and ability to operate at lower pressures reducing the costs for the balance of plant.
Pumped hydro and underground compressed air are very low cost, but have a minimum efficient scale in the thousands of MWH and require specific geographic features.
We have IP on the design, key suppliers locked up, and will be first to market with such a solution providing a lasting competitive advantage.
Business Model & Financials:
Hydrostorhas a very capital efficient business model.
We have a number of strategic suppliers that support construction, some of which are signed to exclusive agreements with Hydrostor in the energy storage vertical. This means there is no need for expensive manufacturing facilities.
We plan to sell directly to utilities through energy storage trade-shows, associations, and open tendering processes. These utilities have strong balance sheets, and therefore can often finance the construction of new facilities.
For remote communities we will license our technology to renewable developers that currently sell wind and wind-diesel hybrids, already have financing arrangements in place, and are accustomed to selling in these target markets.
Our revenue model is based on licensing royalties for the design (a one-time lump sum payment upon construction), and providing maintenance services for installed systems (which provides a steady revenue stream). The model is the same for both remote communities and utility customers.
Initial sales are forecast in 2014.
Team:
The Hydrostor team is headed by CEO Curtis VanWalleghem, MBA, BEng, PMP. Curtis has over 10 years of experience helping energy companies set and execute on their strategy. Prior to Hydrostor, he was a Sr. Manger in Deloitte's Corporate Strategy Consulting Practice where he advised and consulted for some of the top energy companies in Canada and around the globe.
Cameron Lewis acts as President and focuses on product development. With nearly 15 years of manufacturing production of oil-field production equipment in Alberta, he has worked directly with all types of process equipment meeting all types of needs both domestic and abroad. He has prior experience with a number of start-ups including Delaney Energy Manufacturing, Chadco Canada, Armadillo Card Company, and most recently Environmental Electric Company that is developing wind farms in Ontario.
Ning Cao, BEng, MASc, is responsible for R&D. Mr. Cao has expertise related to turbo-machinery, applied thermodynamics, turbine design, and compressed air systems.
Hydrostor has established a valuable group of directors and advisors.
Tom Rand founded Voice Courier Inc. (VCi) in 1991 to service the emerging Interactive Voice Response market and led its expansion to over 100 employees in three countries, with revenue in excess of $20 million US annually. He is currently the Cleantech Practice, Lead Advisor at the MaRS Discovery District. Mr. Rand recently completed a book entitled Kick the Fossil Fuel Habit: 10 Clean Technologies to Save Our Word, distributed by Greenleaf Book in the US, and Fitzhenry & Whiteside in Canada. He has a BSc in electrical engineering from the University of Waterloo, a MSc in philosophy of science from the University of London / London School of Economics, and an MA & PhD in philosophy from the University of Toronto.
Jane Allen is a Partner in Deloitte's Strategy & Operations group and leads Deloitte's Power & Utilities practice across Canada. Jane has over 25 years experience in the power sector, and prior to joining Deloitte, was a policy advisor in the Ontario Ministry of Energy, and Assistant Dean at the University of Toronto's Faculty of Management.
Kevin Delaney has over 27 years of experience and is a leader and a strategist in the oil field services industry. His background includes founding KMK Wireline Services Ltd., Delaney Energy Services Corp., and Pure Energy Services Partnership. Kevin was a finalist in the Ernst & Young Entrepreneur Of The Year® 2005.
Graeme Deans is currently Partner at Ernst & Young focusing on M&A, as well as a Sessional Instructor of M&A at the Schulich School of Business at York University and volunteer advisor at MaRS Discovery District. Prior to joining Secor Consulting, Mr. Deans was Partner at Secor, VP and Partner at A.T. Kearney where he held a number of roles including Chairman of A.T. Kearney Canada, Global Strategy Practice Leader, Managing Director, Southeast Asia and India Singapore. Mr. Deans was also an Associate with Booz, Allen & Hamilton in New York. He has an MBA from the Amos Tuck School at Dartmouth College and a B.Sc. in chemical engineering from Queen's University.
Adriaan Davidse is an Associate Partner in Deloitte's Corporate Strategy Practice. He has spent the last 14 years working with senior executives on issues related to innovation, strategic growth, sustaining shareholder value creation, and helping companies transform to a new energy future, including renewable energy. Adriaan has a MBA in management of technology and R&D, and a Ph.D. in Physical Organic Chemistry and subsequently a NSERC Postdoctoral Fellowship (Physical Organic Chemistry) at the University of Toronto.
Thomas J. Timmins is a Partner with the international law firm Gowlings LLP and currently leads the firm's renewable energy practice. Mr. Timmins acts regularly on behalf of emerging growth companies, underwriters and advisors, and private equity funds seeking acquisition targets in the Canadian market. Mr. Timmins teaches Advanced Business Law at the University of Windsor Law School, is a member of several renewable company boards, and speaks regularly at CanWEA, EUCI and other renewable industry events.
Development Plans:
Hydrostor is on scheduled to complete pilot testing in Lake Ontario in Q3-2011 with their R&D partner the University of Windsor. Completion of these tests will clear the way for the construction of the world's 1st underwater compressed air facility in Toronto, Ontario in 2012 with their utility host partner Toronto Hydro.
Additional Information:
Conover + Company Communications is presenting this information to you on behalf of the Government of Canada. Additional information is on file with the Department of Justice, Washington, District of Columbia.