Cache Power

Cache Power Corp. is a wholly owned subsidiary of Federation Group Inc., a medium-sized engineering and construction company operating under the trade names Federation Engineering and Federation Construction. The company is headquartered in Bonnyville, Alberta, and operates as a special-purpose vehicle created to develop large-scale compressed air energy storage (CAES) infrastructure in Alberta, Canada. Jordan Costley serves as President. Cache Power does not function as an independent startup; it is the commercial development arm through which Federation Group is entering the long-duration energy storage market.

Cache Power is developing the Marguerite Lake CAES and Hydrogen Hub Project near La Corey in northeastern Alberta — a 640 MW facility to be built in two identical 320 MW phases beside the existing Marguerite Lake substation. The core technology uses surplus electricity from the grid to compress air, which is then stored in solution-mined underground salt caverns. During periods of high demand, the compressed air is reheated and expanded through turbines to generate electricity. The system is designed to store up to 48 hours of energy — equivalent to approximately 15,360 MWh per phase — making it one of the longest-duration storage systems planned anywhere in the world. The facility uses Siemens Energy turbine and compressor technology and can blend up to 75% hydrogen with natural gas, with a long-term pathway to 100% hydrogen operation.

Cache Power has secured all major regulatory approvals, with early construction beginning in Q4 2025. Partnerships include EllisDon (EPC contractor), Siemens Energy (equipment), and Babcock & Wilcox, whose BrightLoop technology will be used to produce up to 60 tonnes of hydrogen per day while isolating CO₂ for carbon capture. Cold Lake First Nations has taken an active role in project development and is expected to participate as an equity partner in the project and its operations.

The project has received a grant from Alberta Innovates to support the engineering study phase. Cache Power represents one of the largest long-duration energy storage commitments in Canadian history, and if completed as planned, would provide a new benchmark for grid-stabilizing storage infrastructure in a province whose electricity system is increasingly reliant on variable wind and solar generation.