The project will provide more than eight hours of back-up power to California’s grid, enhancing grid reliability and resiliency
DENVER–(BUSINESS WIRE)–Long-duration energy storage developer and operator, Hydrostor, has reached a conditional commitment for a loan guarantee of up to $1.76 billion with the U.S. Department of Energy’s (DOE) Clean Energy Financing Program (including approximately $1.5 billion of principal and approximately $280 million of capitalized interest). Once finalized, the loan guarantee will help to fund the Willow Rock Energy Storage Center, a 500 MW advanced compressed air energy storage (A-CAES) project to be built in Rosamond, California, that will provide more than eight hours of back-up power to California’s grid.
As electricity demand continues to increase and the need for energy storage grows along with it, so does the need for establishing a robust domestic energy storage industry. If finalized, this loan guarantee would establish the U.S. as a leader in deploying novel long-duration energy storage infrastructure, while creating 700 peak construction jobs and 40 full-time operations jobs.
“We’re thrilled to reach this conditional commitment with the DOE, which is a huge vote of confidence in Hydrostor’s technology, and shows how important energy storage will be as we prioritize the reliability and resiliency of the grid for years to come,” said Curtis VanWalleghem, Chief Executive Officer and Co-Founder.
Hydrostor’s Willow Rock Energy Storage Center is currently under permitting review with the California Energy Commission, with construction expected to begin in 2025 for commissioning in 2030. The project will leverage the existing energy workforce in Kern County, California, the state’s energy capital, for the 700 peak construction jobs and 40 full-time operations jobs it will create. A-CAES technology is key for the future reliability of the grid, allowing energy to be stored when it’s abundant for later use, like when production is lower during an unexpected storm or overnight.
This conditional commitment indicates DOE’s intent to finance the project, however, DOE must complete an environmental review, and the company must satisfy certain technical, legal, environmental, commercial, and financial conditions before the Department can determine whether to enter into definitive financing documents and fund the loan guarantee.
For more information, review the DOE’s announcement blog.
About Hydrostor Inc.
Hydrostor is a leading developer and operator of long duration energy storage systems. Hydrostor leverages a proven technology solution for delivering long duration energy storage (eight hours or more) to power grids around the world. Hydrostor’s technology uses compressed air and water to store energy. This patented technology allows grid operators to draw on clean energy, even when there is no sun to fuel solar panels and no wind to generate energy from turbines.
Hydrostor has a successful utility scale facility commercially contracted to the Independent Electricity System Operator (IESO) located in Goderich, Ontario, and two advanced projects under development in Kern County, California and New South Wales, Australia. Hydrostor has an extensive early-stage pipeline of projects in North America, Australia, and Europe.
Founded in 2010 and with headquarters in Toronto, Canada and an office in Melbourne, Australia, and Denver, USA, Hydrostor is backed by forward-thinking institutional investors, providing financial security to commit to top-tier energy projects.
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To learn more, visit https://www.hydrostor.ca/
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Emily Smith
Director, External Communications
+1 (703)-888-7025
