US DOE grants provisional $305M loan to thermal energy storage firm Nostromo
- Energy Insider Editorial Team
- Dec 11, 2024
- 2 min read
Updated: Jan 7
The U.S. Department of Energy (DOE) has issued a conditional commitment to IceBrick Energy, a subsidiary of Israeli thermal energy storage firm Nostromo Energy, for a loan of up to $305.54 million. Announced on December 9, the loan will support the financing of Project IceBrick, a virtual power plant (VPP) comprising up to 193 cold thermal energy storage (TES) installations across commercial buildings in California.
The DOE’s Loan Programs Office (LPO) will provide $303.69 million in principal and $1.85 million in capitalised interest under its Title 17 Clean Energy Financing Program. This program focuses on innovative clean energy technologies, including projects that significantly reduce greenhouse gas emissions.
Project IceBrick aims to address California's energy challenges, particularly the high evening electricity demand for air conditioning when solar generation decreases. Nostromo’s IceBrick system creates ice using a water and glycol solution during off-peak hours and uses it to cool circulated water during peak energy demand, reducing reliance on energy-intensive chillers.
The modular TES cells are produced in Texas, Iowa, and California, offering scalability across various building types. At full deployment, the project could deliver approximately 170MW/450MWh of behind-the-meter energy storage capacity, integrated and controlled through Nostromo’s Cirrus software.
This loan aligns with the Biden-Harris administration’s Investing in America agenda, which includes the CHIPS Act and Inflation Reduction Act (IRA). It also supports the Justice40 initiative, ensuring 40% of benefits from federal investments in clean energy reach disadvantaged communities.
Previous Justice40 projects include Project Maharu in Puerto Rico, which received $861.3 million for solar PV and battery energy storage installations.
If finalised, the IceBrick loan will further DOE’s efforts to scale innovative clean energy technologies and enhance grid reliability while reducing emissions. Nostromo had previously entered due diligence for a $176 million DOE loan in 2023, marking the agency’s growing activity under the Biden-Harris administration.
