Nostromo Energy secures $305 million DOE loan for California energy storage project

Nostromo Energy secures $305 million DOE loan for California energy storage project
  • Network modernization: Nostromo's IceBrick® systems reduce grid load and emissions while improving energy affordability.
  • Impact on the community: 20% of installations target disadvantaged communities, creating over 200 new jobs.
  • Sustainability boost: Potential to reduce 500,000 tons of CO₂ emissions and support California's clean energy goals.

What happens:

Nostromo Energy received a conditional loan guarantee commitment of $305.5 million from the U.S. Department of Energy (DOE). The funds are financed IceBrick® projectDeploying Nostromo's innovative thermal energy storage systems in 193 commercial buildings in California.

Why it matters:

Cooling systems place a large energy burden on U.S. grids, with California being the second largest energy consumer in the country. Nostromo's IceBrick® technology charges during times of clean, cheap electricity (from renewable sources) and discharges during peak demand, reducing costs and emissions.

This project will benefit not only commercial buildings but also electricity consumers in general, create hundreds of well-paying domestic jobs and reduce emissions from gas peak power plants that primarily affect disadvantaged communitiessaid Yoram Ashery, CEO of Nostromo Energy.

Yoram Ashery, CEO of Nostromo Energy

Related article: U.S. Environmental Protection Agency (EPA) grants California exemptions from truck and car emissions rules

The big picture:

  • Environmental Impact: The IceBrick® project could avoid 500,000 tons of CO₂ emissions by adding 170 MW (450 MWh) of on-site storage capacity.
  • Job creation: Over 200 jobs, including 170 top construction positions, and opportunities for contractors from disadvantaged communities.
  • VPP integration: The system operates as a virtual power plant (VPP) that time-shifts cooling loads to reduce grid demand during peak hours and replace carbon-intensive gas peak power plants.

How it works:

The IceBrick® system uses ice-based thermal energy storage to manage commercial HVAC energy consumption. The modular, American-made units can be installed under Nostromo's Energy Storage-as-a-Service model with no upfront costs and are compatible with hotel, office and data center retrofits.

We are excited to help realize the DOE and LPO's vision of making VPPs a key resource of the modern grid by serving up to 20% of its peak loadsAshery added.

What's next?:

The DOE funding is part of the Title 17 Clean Energy Financing Program, which supports large-scale deployment of clean energy technology. The IceBrick® project is the first thermal energy storage initiative under this program and is consistent with California's goal of having a 100% clean energy grid by 2045.

Follow ESG News on LinkedIn

Leave a comment

Your email address will not be published. Required fields are marked *