Compressed air storage pioneer secures billion-dollar loan to deliver 8 hours back-up to California grid

Canadian energy storage developer Hydrostor has secured a loan from the United States government worth up to $US1.76 billion for the development of Willow Rock Energy Storage Center, a 500MW/4GWh advanced compressed air energy storage project to be built in California.

Hydrostor, which is also developing a groundbreaking underground energy storage facility in New South Wales, announced earlier this month that it had secured a conditional commitment for a loan guarantee of up to $US1.76 billion from the US department of energy’s (DOE) Clean Energy Financing Program.

The 500MW/4GWh (8-hour) Willow Rock Energy Storage Center is set to be built in Rosamond, California, and is expected to provide over eight hours of back-up power to California’s grid.

The timing for the DOE’s decision for the project is relatively conspicuous, as it was announced less than a fortnight before Donald Trump returns to the White House, and with him a robust dismissal of clean technologies and the underlying issue of climate change.

However, it remains a “conditional commitment” of a loan guarantee, and in its press release announcing the financing, Hydrostor would go only so far as saying “if finalised” of the loan guarantee.

This conditional commitment now rests on the completion of an environmental review by the DOE.

If the loan guarantee is finalised, however, Hydrostor expects the United States to become a leader in deploying novel long-duration energy storage infrastructure as well as help to create up to 700 jobs during the peak of construction, and 40 ongoing 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, CEO and co-founder of Hydrostor.

The Willow Rock Energy Storage Center is currently under permitting review with the California Energy Commission, but is expected to begin construction this year, with a view to be commissioned and operational by 2030.

Hydrostor must also satisfy certain technical, legal, environmental, commercial, and financial conditions before the DOE can enter into a definitive financing agreement.

All of this also remains subject to the incoming Trump administration’s efforts revive the country’s fossil fuel industry, reduce government spending, and the president-elect’s attitudes towards clean technologies.