Hydrostor, a long-duration energy storage developer and operator, announced it 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 about $1.5 billion of principal and approximately $280 million of capitalized interest). After 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 backup power to California’s grid.
With electricity demand continuing 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.
Hydrostor’s Willow Rock Energy Storage Center is now under permitting review with the California Energy Commission, with construction expected to begin in 2025 for commissioning in 2030. And 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 essential 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. But 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.
KEY QUOTE:
“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.”
– Curtis VanWalleghem, Chief Executive Officer and Co-Founder
