Hydrostor January 2025 Debt Financing Funding Round

Hydrostor, a developer and operator of long-duration energy storage systems, has secured a conditional commitment for a loan guarantee of up to $1.76 billion from the U.S. Department of Energy (DOE) through its Clean Energy Financing Program.

This funding is designated for the Willow Rock Energy Storage Center, a 500-megawatt (MW) advanced compressed air energy storage (A-CAES) project planned for Rosamond, California. The facility is designed to provide over eight hours of backup power to California's electrical grid, enhancing its reliability and resilience.

The loan guarantee comprises approximately $1.5 billion in principal and about $280 million in capitalized interest. Once finalized, it will support the construction and operation of the Willow Rock Energy Storage Center, which is expected to create 700 peak construction jobs and 40 full-time operational positions. The project is currently under permitting review by the California Energy Commission, with construction anticipated to commence in 2025 and commissioning targeted for 2030. The facility aims to leverage the existing energy workforce in Kern County, California, known as the state's energy capital.