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EDMONTON – EllisDon is embarking on a first by partnering with Cache Power to deliver a commercial scale Compressed Air Energy Storage (CAES) facility in northeast Alberta.

According to a release, the facility will be built in two phases and is strategically positioned beside the Marguerite Lake substation to maximize efficiency and grid integration.

CAES is meant to be a long duration solution for managing renewable, intermittent energy sources.

The project has received all major regulatory approvals, with early construction to begin in Q4 2025.

“EllisDon is proud to invest in and partner with Cache Power on Canada’s first commercial scale Compressed Air Energy Storage facility,” said Joey Comeau, chief operating officer and executive vice-president, capital with EllisDon in a statement. “With a multi-phase design, the project aims to shine a spotlight on renewable energy while creating strong project economics for future partners and investors.”

Based on Siemens Energy technology, CAES is capable of providing “ultra-long-duration energy storage at a lower capital cost compared to other storage technologies.”

“This partnership is an important step toward storing and reusing energy reliably and responsibly. CAES is a mature — though not yet widely adopted — technology built on high-quality, long-proven components like our compressors, turbines and generators,” added Tobias Panse, senior vice-president, industrial steam turbines and generators with Siemens Energy.

The facility will store up to 48 hours of energy by compressing air using surplus electricity from the grid and storing it in underground solution-mined salt caverns. During periods of higher demand, the air is released and mixed with natural gas to generate heat, allowing it to expand and drive turbines to generate electricity, the release reads.

The system can also blend up to 75 per cent hydrogen with natural gas.

Babcock & Wilcox have partnered on engineering the potential hydrogen facility addition, utilizing its BrightLoopTM technology.

The release notes Cold Lake First Nations has taken an active role in the development of the project and is expected to participate as a partner with Cache Power Corp in the project and operations.