Project Details
Developer
Location
La Corey, Alberta, Canada
Capacity
640 MW-electric, 30720 MWh-electric
COD
Expected COD: 2027
About This Project
Executive Overview
Marguerite Lake is a 640 MW / 30.72 GWh compressed air energy storage (CAES) project under development near La Corey, Alberta, developed by Cache Power (owned by Federation Group Inc.) and constructed by EllisDon as EPC contractor. The project is structured in two identical 320 MW phases, each with 15,360 MWh of storage (48 hours of continuous generation), using Siemens Energy compression and expansion trains and underground salt caverns of the Lotsberg halite formation at approximately 1,100 metres depth. Phase 1 commercial operations are targeted for Q1 2028, with total project investment of at least $500 million. All major regulatory approvals have been received, including from the Alberta Utilities Commission, under the Environmental Protection and Enhancement Act, and development permits from the M.D. of Bonnyville. Early construction activities commenced in Q4 2025.
How It Works & Differentiation
The facility uses surplus grid electricity to compress ambient air through a 125 MW compressor train per phase, storing the pressurised air in underground salt caverns created through solution mining. During discharge, the compressed air is reheated — initially using natural gas, transitioning to hydrogen by 2030 — and expanded through two 160 MW expander trains per phase. High-efficiency dual-reheat recuperators recovering 90% of waste heat are incorporated in each phase, contributing to a round-trip efficiency of approximately 60% and a heat rate of 4,067 kJ/kWh — materially higher than conventional CAES designs and 5% more efficient than equivalent simple-cycle peaker plants. CO₂ emissions are reduced by 67% versus simple cycle combustion turbines, with a pathway to net-zero electricity production by 2035 through 100% hydrogen co-firing.
Commercialization & Traction
Cache Power has received $5 million from the Alberta provincial government for studies and pre-construction activities, and a further $2 million from Alberta Innovates for the hydrogen component engineering study. Cold Lake First Nations is engaged as a project partner in both construction and operations, providing community equity participation. Babcock & Wilcox is involved for the Phase 2 hydrogen production hub, deploying its BrightLoop chemical looping technology to produce up to 60 tonnes of hydrogen per day with near-complete CO₂ capture, with hydrogen stored in on-site salt caverns and connected to the Pathways Alliance Carbon Capture and Storage network.
Scalability & Strategic Context
Marguerite Lake is designed as a two-phase facility on a single site with no comparable precedent in Alberta, and its salt cavern geology — 200 metres thick Lotsberg halite — supports additional development beyond the current 640 MW scope. The project's hydrogen co-firing pathway and BrightLoop integration position it as a long-duration storage and clean hydrogen production hub rather than a simple energy arbitrage asset. Alberta's grid, which is transitioning away from coal, faces growing demand for firm, dispatchable capacity to balance increasing wind penetration; Marguerite Lake's 48-hour discharge duration specifically addresses multi-day weather events that shorter storage technologies cannot cover. The project's design life exceeds 30 years, and it provides rotating inertia and black start capability — grid services that battery storage cannot replicate.
Project Timeline
Further Reading
EllisDon Partners With Cache Power For Canada’s First Compressed Air Storage Facility
EllisDon has partnered with Cache Power to build Canada’s first commercial-scale compressed air energy storage facility in Alberta, aiming to provide long-duration, cost-effective energy storage to support renewable energy integration and grid stability.
Cache Power Advances 30 GWh Compressed Air Energy Storage Project in Alberta
Cache Power is advancing a 30 GWh compressed air energy storage and hydrogen hub project in Alberta, which will use Babcock & Wilcox’s BrightLoop technology to enable large-scale, low-emission energy storage and hydrogen production with integrated CO₂ capture.
Cache Power Project Summary
The Cache Power Project aims to integrate BrightLoop hydrogen production technology with compressed air energy storage at Marguerite Lake, Alberta, to deliver cost-effective, net-zero electricity and large-scale hydrogen storage using local salt caverns.
Northern Alberta project could add 320 megawatts to Alberta’s energy grid
A proposed $500 million compressed air energy storage project north of La Corey, Alberta, could add 320 megawatts to the province's energy grid for 30 years, using wind energy and transitioning from natural gas to hydrogen, while raising environmental and Indigenous consultation concerns.
EllisDon Partners with Cache Power for Canada’s First Compressed Air Storage Facility
EllisDon has partnered with Cache Power to build Canada’s first commercial-scale compressed air energy storage facility in Alberta, aiming to provide long-duration, cost-effective energy storage to support renewable energy integration and grid stability.
Cache Power plans Canada’s first commercial-scale compressed air energy storage facility
Cache Power, in partnership with EllisDon, is developing Canada’s first commercial-scale compressed air energy storage facility in Alberta, aiming to enhance grid stability and support net-zero goals by storing energy in underground salt caverns and potentially integrating hydrogen in the future.
Marguerite Lake compressed air energy storage project gets $5 million investment from province
The Marguerite Lake Compressed Air Energy Storage Project north of La Corey has received a $5 million investment from the province to support studies and pre-construction activities for a facility that will store renewable energy as compressed air in underground salt caverns and generate electricity during peak hours.
Marguerite Lake Compressed Air Energy Storage
The Marguerite Lake Compressed Air Energy Storage project is a proposed 320 MW facility in Bonnyville, Alberta, designed to store surplus electricity by compressing air in underground salt caverns and release it to generate power during peak demand, supporting grid stability and renewable energy integration.
Marguerite Lake Hydrogen Hub Project
The Marguerite Lake Hydrogen Hub Project aims to develop a regional hydrogen production and distribution hub in Alberta to support clean energy initiatives and economic growth.
Project Profile: Compressed Air Energy Storage (CAES)
The document describes the Marguerite Lake Compressed Air Energy Storage (CAES) Project in Alberta, which will use underground salt caverns to store surplus renewable energy as compressed air, provide up to 640 MW of dispatchable electricity, and support grid stability and decarbonization through advanced hydrogen and carbon capture technologies.