Napanee Council seeks additional resident input on proposed Hydrostor energy storage project

Greater Napanee Council will seek additional input from nearby residents before deciding whether to support Hydrostor’s proposed Quinte Energy Storage Centre, a move that could delay the decision by about a month.

Hydrostor presented the results of community consultation and preliminary technical studies for the project at Council’s Tuesday, Mar. 10, 2026, meeting at Town Hall. Hydrostor is seeking a municipal support resolution from the Town of Greater Napanee as part of its bid into a provincial procurement process run by the Independent Electricity System Operator (IESO).

A municipal support resolution does not approve the project itself, but indicates whether the municipality supports the proposal moving forward through provincial procurement and regulatory review.

First introduced to Council in June 2023, the proposed facility would use a technology known as Advanced Compressed Air Energy Storage (A-CAES). Surplus electricity from the grid would be used to compress air and store it in a sealed underground cavern several hundred metres below ground. When demand rises, the air would be released to drive turbines that generate electricity. Hydrostor describes the system as a form of long-duration energy storage intended to improve grid reliability.

The project is being developed in partnership with the Mohawks of the Bay of Quinte and would be located near County Road 22, north of the Lennox Generating Station.

Hydrostor told Council that geological drilling completed last year confirmed the presence of suitable hard-rock geology approximately 600 to 800 metres underground, a key requirement for the compressed air storage system.

The company also summarized several technical studies conducted by independent consultants examining water sourcing, operational noise, traffic impacts, agricultural compatibility and planning.

According to the presentation, the facility would draw water from Lake Ontario through a pipeline rather than groundwater sources. The hydrogeological assessment concluded the project is not expected to affect local wells or groundwater systems.

Hydrostor told Council noise modelling shows the facility would comply with provincial environmental guidelines for rural areas, including a nighttime limit of 40 decibels at nearby homes — roughly comparable to the sound level of a quiet library or a refrigerator hum.

Traffic studies similarly concluded that nearby intersections would continue to operate with minimal delays, including during peak construction periods.

Hydrostor said the project would be located on a roughly 170-acre parcel, with an expected finished footprint of about 80 to 90 acres. The facility would also include a surface reservoir estimated at between 20 and 25 acres.

Project benefits highlighted

During the presentation, Hydrostor also outlined several potential economic and community benefits associated with the project.

Company representatives said construction of the facility could create approximately 670 jobs during the construction phase and generate more than $1 billion in economic activity. Once operational, the facility is expected to employ about 40 people.

Hydrostor also told Council the project would rely heavily on domestic labour and Canadian supply chains, which the company said would support economic activity in the region.

The company said it also intends to provide community benefit payments to the municipality and work with the Mohawks of the Bay of Quinte on local employment initiatives.

Hydrostor also described community outreach conducted late last year, including door-to-door “kitchen table” discussions with residents near the project site and a public open house. According to the company, representatives knocked on 66 doors in the surrounding area and held conversations with more than 30 residents.

Council raises questions

Councillor Mike Schenk said he would like the Town to conduct its own outreach with nearby residents before Council considers a municipal support resolution.

Schenk said he wanted to ensure residents in the area have an opportunity to raise concerns before Council makes a decision.

 “If I have to live beside the power generation that you're doing here for 50 plus years, I'd like to have an extra month taken and [ask], 'Do you have my say?'” Schenk told the meeting.

“I don’t want to get to the 11th hour, and then a lot of residents come up and say, ‘Hey, there’s no way I want this near me.’”

Town staff said conducting additional outreach would likely mean about a month's delay in the timeline for bringing a report on the municipal support resolution back to Council.

The Hydrostor representatives indicated they had hoped Council might consider the resolution in April. Staff said that if additional consultation is undertaken, the report could return to Council in May or early June.

Councillor Angela Hicks noted that if Council proceeds with additional outreach, the process should have a clear timeline.

“I think there should be a time limit on the survey,” Hicks said, noting the project has already been discussed by Council multiple times and that Hydrostor has previously conducted public consultation, including an open house she described as informative.

“In defence of the proponents, they're trying to run a business,” Hicks said. “People aren't investing millions of dollars if it looks like we can't get our collective stuff together.”

Hydrostor told Council it understood the request for further engagement but noted the company is working toward a provincial procurement deadline later this year.

“We definitely want Council to take the necessary steps they need to get comfortable,” said Hydrostor Vice President of Business Development Shaheer Aziz, adding the company would be willing to participate in additional community engagement if requested.

Council ultimately voted to receive the presentation and direct staff to prepare a report on the proposed municipal support resolution, including conducting additional outreach with residents near the project site.

Town staff said conducting additional outreach would likely delay the report on the proposed municipal support resolution by about a month, meaning it could return to council in May or early June. If approved, the resolution would allow Hydrostor to include municipal support in its proposal to the IESO, which the company hopes to submit thereafter.

Meetings of the Council of the Town of Greater Napanee can be viewed virtually (or watched afterward) on the Napanee Town Council YouTube channel or attended in person in Council Chambers at Napanee Town Hall, 124 John Street. Further information about Council meetings, including agendas and reports, is available on the Town’s CivicWeb portal.