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Toronto-based energy storage firm Hydrostor Inc. and utility WEB Aruba N.V. have signed a power purchase agreement for an underwater compressed air energy storage facility based on Hydrostor's technology.

Hydrostor says it will anchor an air cavity to the bottom of the ocean floor and store energy in the cavity by filling it with compressed air created using surplus renewable power. The company adds that the energy is discharged from the system by releasing the air to drive a turbine.

According to Hydrostor, the project will be located at the Vader Piet wind park on Aruba's southeastern coast and is expected to start storing power in 2014.

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