A large-scale compressed air energy storage project has secured millions in backing.

A company called Hydrostor has secured US$37 million (A$54.6 million) in new investment to accelerate progress on 100MW+ scale energy storage projects.

Hydrostor will reportedly use the financing - from GE Energy offshoot Baker Hughes and global investment firm Meridiam - on the development of the Angas energy storage project in Australia.

The Angas project is set to be Australia’s first large-scale compressed air energy storage system, to be located in South Australia.

The $30 million project is located at the former Angas Zinc Mine site at Strathalbyn, planned to provide 5MW of backup power for up to 2 hours, with 10MWh of storage capacity.

Hydrostor’s Advanced Compressed Air Energy Storage (A-CAES) can store energy and also deliver electricity with short notice similar to battery storage. A video demonstration can be seen below.

“Hydrostor’s A-CAES is well positioned to capitalize on the growing demand for flexibly-sited, long-duration energy storage as power grids continue to decarbonize and adapt to higher penetrations of intermittent renewable energy,” Hydrostor CEO Curtis VanWalleghem said in a statement.

“This funding will enable our development team to continue advancing the late-stage projects we have under way. We are thrilled to collaborate with, and benefit from, the expertise of Meridiam in project development and financing; [Baker Hughes’] industry-leading technology, service capabilities and commitment to advancing low-carbon solutions.”

The Angas project has received a $6 million ARENA grant for its demonstration project, and a $3 million grant from the South Australian government in return for Hydrostor locating its Australian headquarters in the state.