Hydrostor and Baker Hughes Strengthen Strategic Partnership to Advance Long-Duration Energy Storage
Hydrostor, a leading global developer and operator of long-duration energy storage (LDES) solutions, and Baker Hughes, a global energy technology company, have announced a major expansion of their strategic relationship through a new technology solutions and equity agreement. The announcement, made Wednesday at the 2026 Baker Hughes Annual Meeting in Florence, marks a significant milestone for both companies as they seek to address growing reliability and resiliency challenges facing power systems worldwide.
Under the agreement, Baker Hughes will deepen its collaboration with Hydrostor by integrating its advanced technology capabilities into Hydrostor’s core design offering for its proprietary Advanced Compressed Air Energy Storage (A-CAES) solution. As part of this expanded partnership, Hydrostor expects to place up to 1.4 gigawatts (GW) of equipment orders with Baker Hughes for its flagship energy storage projects, reinforcing the industrial scale and commercial readiness of Hydrostor’s technology platform.
Addressing Grid Reliability in a Rapidly Changing Energy Landscape
Electric grids around the world are facing unprecedented strain. Rising electricity demand, the rapid deployment of variable renewable energy sources such as wind and solar, electrification across transportation and industry, and the explosive growth of AI-driven data centers are all increasing pressure on grid infrastructure. These dynamics are amplifying the need for reliable, long-duration energy storage solutions that can deliver power over many hours or even days when generation and demand are out of balance.
“Increasing pressure on electric grids is making long-duration energy storage an urgent priority,” said Lorenzo Simonelli, chairman and chief executive officer of Baker Hughes. “Hydrostor’s innovative approach offers a low-carbon solution to ensure power reliability across a diverse mix of generation resources. We are proud to support Hydrostor with critical technology to accelerate these projects, supporting greater global grid resilience, and enabling sustainable power systems at scale.”
Unlike short-duration batteries that typically provide power for one to four hours, long-duration energy storage technologies are designed to deliver electricity for extended periods, helping grids manage prolonged renewable intermittency, peak demand events, and system disruptions. Hydrostor’s A-CAES technology is specifically engineered to meet these challenges while maintaining a low-carbon footprint and long operational life.
The Role of Baker Hughes Technology in Hydrostor’s A-CAES Platform
Hydrostor’s A-CAES solution stores energy by using electricity to compress air and store it underground in engineered rock caverns. When electricity is needed, the compressed air is released, heated using a proprietary thermal management system, and expanded through turbines to generate power. The system is designed to operate without fossil fuel combustion, enabling a clean, dispatchable source of energy that complements renewable generation.
Through the expanded agreement, Baker Hughes will provide a suite of critical equipment and technology solutions that form the backbone of Hydrostor’s power generation and compression systems. This includes advanced compression, expander, motor, and generator technologies drawn from Baker Hughes’ extensive global portfolio. These components are expected to play a central role in achieving the high efficiency, reliability, and scalability required for utility-scale A-CAES facilities.
In the initial phase of the collaboration, Hydrostor plans to deploy up to 1.4 GW of Baker Hughes equipment across its flagship projects, underscoring the confidence both companies have in the technical and commercial viability of the platform. The integration of Baker Hughes’ proven industrial technologies is also expected to help streamline project execution, reduce delivery risk, and support faster deployment timelines.
Building on a Relationship Established in 2019
Baker Hughes has been an investor in Hydrostor since 2019, and the latest agreement represents a natural evolution of a relationship that has matured alongside the growth of Hydrostor’s project pipeline. Over the past several years, Hydrostor has advanced multiple large-scale projects, secured key permits, and worked closely with utilities, regulators, and communities to position A-CAES as a cornerstone technology for future power systems.
“This agreement Hydrostor has signed with Baker Hughes underscores the momentum behind our A-CAES technology platform that is able to cost-effectively provide reliability and resiliency to grids around the world,” said Curtis VanWalleghem, co-founder and chief executive officer of Hydrostor. “We’re excited to build on our relationship with Baker Hughes as we near construction for our flagship projects and work to expand our project pipeline, as load grows and AI data center infrastructure is being built out globally.”
As Hydrostor approaches construction on its flagship projects in the United States and Australia, the expanded partnership is expected to play a critical role in de-risking execution and supporting long-term operational performance. These projects are designed to demonstrate the scalability of A-CAES and its ability to provide firm, dispatchable power without direct carbon emissions.
Supporting the Energy Transition at Scale
The collaboration between Hydrostor and Baker Hughes reflects a broader trend in the energy sector, where technology developers and industrial leaders are joining forces to accelerate the deployment of low-carbon solutions. Long-duration energy storage is increasingly viewed as essential infrastructure for achieving deep decarbonization while maintaining grid stability and affordability.
Hydrostor’s A-CAES technology offers several advantages that make it well suited for large-scale deployment. It uses abundant, non-degrading materials, is designed for multi-decade operating life, and can be configured to provide a range of grid services, including capacity, energy shifting, frequency regulation, and reserve power. When paired with Baker Hughes’ industrial-grade equipment and global execution capabilities, the platform is positioned to compete at scale with traditional thermal generation for reliability services.
For Baker Hughes, the agreement aligns with the company’s strategy to apply its energy technology expertise across the evolving energy value chain. By supporting large-scale energy storage projects, Baker Hughes is expanding its role in enabling resilient, flexible, and lower-carbon power systems worldwide.
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