Long-duration energy storage developer Hydrostor has received a conditional commitment for up to $1.76bn loan guarantee from the US Department of Energy (DOE) to support its 500MW Willow Rock Energy Storage Center in the US.
To be built in Rosamond, California, the advanced compressed air energy storage (A-CAES) project aims to provide more than eight hours of backup power to California’s grid.
Developed by Hydrostor’s subsidiary GEM A-CAES, the facility is expected to deliver 4GWh of energy storage. The project is expected to commence construction in 2025, with commissioning anticipated by 2030.
Currently under review by the California Energy Commission for permitting, the Willow Rock Energy Storage Center is expected to enhance reliability and bolster renewable energy integration.
Issued through the DOE’s clean energy financing programme, the loan guarantee comprises approximately $1.5bn in principal and $280m in capitalised interest.
If finalised, the funding is set to help establish the US as a leader in long-duration energy storage technology. The project will create 700 peak construction jobs and 40 full-time operational roles.
The A-CAES technology works by storing energy by compressing air and releasing it through a turbine when needed, thereby providing a cost-effective and sustainable alternative to batteries.
The DOE’s conditional commitment is subject to the completion of environmental reviews and the satisfaction of technical, legal, and commercial conditions.
Hydrostor CEO and co-founder Curtis VanWalleghem said: “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 prioritise the reliability and resiliency of the grid for years to come.”
Founded in 2010, Hydrostor operates a utility-scale facility in Ontario and has advanced projects under development in Australia and North America.
