In a landmark move for Canada's clean energy sector, construction giant EllisDon has announced a strategic partnership with Cache Power to develop the nation's first commercial-scale Compressed Air Energy Storage (CAES) facility. The groundbreaking project will be located in Northeast Alberta, positioned strategically beside the Marguerite Lake substation.
A Benchmark for Long-Duration Energy Storage
The facility is designed to set a new benchmark for long-duration energy storage in Canada. CAES technology offers a cost-effective solution crucial for managing the intermittent nature of renewable energy sources like wind and solar. By storing surplus energy for later use, the project is poised to play a critical role in stabilizing Alberta's electricity grid and advancing both provincial and national commitments to a net-zero future.
The project has received all major regulatory approvals, with early construction activities scheduled to commence in the fourth quarter of 2025. It will be built in two distinct phases to optimize development and integration.
Technology and Strategic Partnerships
The CAES system is based on mature technology from Siemens Energy, capable of providing ultra-long-duration energy storage for up to 48 hours. This duration and scale are currently unmatched in Alberta. The process involves using surplus electricity from the grid to compress air, which is then stored in underground, solution-mined salt caverns. When electricity demand rises, the stored air is released, mixed with natural gas to generate heat, and expanded through turbines to regenerate power.
A key feature of the design is its hydrogen compatibility. The system can initially blend up to 75% hydrogen with natural gas and has a clear pathway to using 100% hydrogen, aligning with Canada's long-term net-zero goals. Engineering firm Babcock & Wilcox is collaborating on the potential hydrogen facility addition using its BrightLoop™ technology.
Leadership and Community Commitment
"EllisDon is proud to invest in and partner with Cache Power on Canada’s first commercial scale Compressed Air Energy Storage facility," stated Joey Comeau, Chief Operating Officer & Executive Vice President, Capital, at EllisDon. He emphasized that the multi-phase project highlights confidence in long-duration storage as a cornerstone of a reliable, low-carbon energy future.
David McFarlane, Chief Operating Officer & Executive Vice President, Construction, Western Canada for EllisDon, noted that Alberta is setting the pace for Canada's clean energy future. The partnership aims to build a resilient system that creates lasting economic and social value for local communities and Indigenous partners.
In a significant show of local engagement, Cold Lake First Nations has taken an active role in the project's development and is expected to participate as a partner with Cache Power Corp in both the project and its future operations.
Tobias Panse, Senior Vice President at Siemens Energy, called the partnership an important step toward storing and re-using energy reliably. He praised EllisDon's pioneering mindset, stating that together they will turn innovation into reliable daily performance.
