Hydrostor’s Willow Rock Energy Storage Project Gets Green Light For $1.76 Billion Loan Guarantee From U.S. DOE

Hydrostor, a developer and operator of long-duration energy storage, has received a conditional commitment from the U.S. Department of Energy (DOE) for a loan guarantee of up to $1.76 billion through the DOE’s Clean Energy Financing Program. This amount includes approximately $1.5 billion in principal and $280 million for capitalized interest. The loan guarantee, once finalized, will help fund the Willow Rock Energy Storage Center, a 500 MW advanced compressed air energy storage (A-CAES) project in Rosamond, California.

The facility will provide over eight hours of backup power to California’s electricity grid. As electricity demand and the need for energy storage continue to rise, this loan guarantee could position the U.S. as a leader in long-duration energy storage. The project is expected to create 700 construction jobs during peak periods and 40 permanent full-time jobs for its operation.

Curtis VanWalleghem, Chief Executive Officer and Co-Founder, mentioned, “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.”

Hydrostor’s Willow Rock Energy Storage Center is in the process of securing permits from the California Energy Commission, with plans for construction to start in 2025 and the facility expected to be operational by 2030. Located in Kern County, California, the center will create 700 temporary construction jobs and 40 permanent full-time positions.

The project will use A-CAES (Advanced Compressed Air Energy Storage) technology, which stores energy when it’s plentiful and releases it during times of high demand or when production is low, such as during storms or at night. The U.S. Department of Energy (DOE) has issued a conditional commitment to finance the project, signaling their intention to fund it. However, before final approval and funding, the DOE needs to complete an environmental review and ensure the company meets specific technical, legal, environmental, commercial, and financial requirements.