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Nostromo Energy Secures $305M DOE Loan for California Energy Storage Project

Nostromo Energy Secures $305M DOE Loan for California Energy Storage Project

Nostromo Energy received a conditional commitment for a $305.5 million loan guarantee from the U.S. Department of Energy
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  • Grid Modernization: Nostromo’s IceBrick® systems to reduce grid strain and emissions while improving energy affordability.
  • Community Impact: 20% of installations targeted for disadvantaged communities, creating over 200 new jobs.
  • Sustainability Boost: Potential to cut 500,000 tonnes of CO₂ emissions and support California’s clean energy targets.

What’s happening:

Nostromo Energy received a conditional commitment for a $305.5 million loan guarantee from the U.S. Department of Energy (DOE). The funds will finance Project IceBrick®, deploying Nostromo’s innovative thermal energy storage systems across 193 commercial buildings in California.

Why it matters:

Cooling systems represent a major energy load on U.S. grids, with California being the second-largest energy consumer in the nation. Nostromo’s IceBrick® technology charges during times of clean, cheap electricity (powered by renewables) and discharges during peak demand, lowering costs and emissions.

This project will benefit not only commercial buildings, but also electricity consumers in general, create hundreds of good-paying domestic jobs, and reduce emissions from gas peaker plants which mostly impact disadvantaged communities,” said Yoram Ashery, CEO of Nostromo Energy.

Yoram Ashery, CEO of Nostromo Energy

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The big picture:

  • Environmental impact: Project IceBrick® could prevent 500,000 tonnes of CO₂ emissions by adding 170 MW (450 MWh) of on-site storage capacity.
  • Job creation: Over 200 jobs, including 170 peak construction roles, and opportunities for contractors from disadvantaged communities.
  • VPP integration: The system operates as a Virtual Power Plant (VPP), time-shifting cooling loads to reduce grid demand during peak hours, replacing carbon-intensive gas peaker plants.

How it works:

The IceBrick® system uses ice-based thermal energy storage to manage commercial HVAC energy use. The modular, U.S.-made units can be installed without upfront costs under Nostromo’s “Energy Storage-as-a-Service” model and are compatible with retrofits for hotels, offices, and data centers.

We’re excited to help fulfill the vision of the DOE and LPO to make VPPs a key resource of the modern grid by serving up to 20% of its peak loads,” added Ashery.

What’s next:

The DOE’s financing is part of the Title 17 Clean Energy Financing Program, supporting wide-scale deployment of clean energy tech. Project IceBrick® is the first thermal energy storage initiative under this program, aligning with California’s goal of a 100% clean energy grid by 2045.

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