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Plant(s): View 4 related plants in PECWeb
Released October 30, 2025 | SUGAR LAND
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Written by Eric Funderburk for Industrial Info Resources (Sugar Land, Texas)
Other prominent forms of energy storage include pumped-storage hydropower projects, in which water is pumped through generating turbines from a higher reservoir to a lower elevation when needed, feature significantly in Industrial Info's project coverage, often carrying very high price tags. However, these pumped-storage hydro are for the most part extremely large undertakings that often don't get off the ground as they encompass complex elements such as digging new reservoirs or diverting natural water courses.
CAES may provide a better form of energy storage than pumped-storage hydro and even outperform lithium-ion batteries in certain regards. CAES can be cost-competitive with both pumped-storage and battery storage, providing easy scalability for whatever size is needed. Importantly, it brings a low risk of fires with it--a serious concern for BESS units in which batteries can ignite. In addition, CAES systems don't degrade as much over time. Batteries offer only a limited lifespan and begin degrading almost from the first moment of use.
This CAES facility represents significantly more power availability than most BESS projects, consisting of two construction phases that will each result in 320 megawatts (MW) of available energy, resulting in an aggregate power capacity of 640 MW available when needed. Construction of the first phase could possibly commence by the end of this year, putting the first 320 MW on track to be finished in 2027, followed by the second half of the project, which Industrial Info estimates will be completed sometime in 2030. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more by viewing the related project reports.
But plenty more CAES projects are in various stages of development in both the U.S. and Canada. Perhaps the most significant of these is the planned 500-MW, 1,400-megawatt-hour (MWh) Willow Rock facility that is planned near Rosamond, California. With a price tag of more than $1.5 billion, this facility would use Hydrostor's (Toronto, Ontario) A-CAES technology, which also incorporates stored heat. With such a large price tag and the need to construct a purpose-built storage cavern, this project may be a bit more difficult to get off the ground than its smaller counterparts, but all being well, the plant could began operating within a couple of years. Subscribers can click here to learn more.
A similarly sized 500-MW CAES facility, with a somewhat reduced price tag, but still approaching US$1 billion, is planned for Napanee, Ontario, in Canada. This facility also would use Hydrostor technology and employ three generator sets for power generation. While not yet started, this project could begin turning dirt as soon as next year and be ready before the end of the decade. Subscribers can click here to learn more about the project.
Perhaps the most feasible deployment of Hydrostor's CAES technology is set for Lowville in upstate New York, about 80 miles northeast of Syracuse. This CAES project brings a lower generating capacity than the other projects discussed, but also a much more easily digested price tag of around $285 million. Requiring notably less time to construct, if work on this project begins as anticipated in early 2028, it could be providing stored energy as soon as 2029. Subscribers can learn more by viewing the project report.
While CAES projects may not be as numerous as BESS deployments, they nevertheless offer important pluses when compared to the more common battery technology. Perhaps their biggest drawback is the need for a large cavern to store the air, which can be dug or incorporate existing subterranean structures. This requirement limits the locations for CAES deployment, but in areas where the technology is achievable, CAES may very well offer one of the cleanest and long-lasting forms of energy storage available.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Summary
Cache Power has selected Babcock & Wilcox to conduct an engineering study and provide technology for a compressed air energy storage (CAES) and hydrogen hub project in Alberta. Other CAES projects are in various stages of development throughout North America.Cache Makes Progress on CAES Facility
Cache Power (Champaign, Illinois), part of engineering, procurement and construction (EPC) provider Federation Group Incorporated (Sandusky, Ohio) is making progress with plans for a compressed air energy storage (CAES) facility in Alberta by selecting Babcock & Wilcox (Akron, Ohio) to provide engineering studies for the project. Not only will the facility store energy for use in times of high power demand; it also will produce hydrogen.Types of Energy Storage
Energy storage, which allows power to be quickly deployed in times of high demand and avoid surplus baseload generation, has become a hot sector in the U.S. Anyone who follows the U.S. power industry is probably aware that battery energy storage systems (BESS), primarily using lithium-ion batteries for power deployment, are springing up quickly and seemingly everywhere across the country--but other forms of energy storage exist.Other prominent forms of energy storage include pumped-storage hydropower projects, in which water is pumped through generating turbines from a higher reservoir to a lower elevation when needed, feature significantly in Industrial Info's project coverage, often carrying very high price tags. However, these pumped-storage hydro are for the most part extremely large undertakings that often don't get off the ground as they encompass complex elements such as digging new reservoirs or diverting natural water courses.
CAES may provide a better form of energy storage than pumped-storage hydro and even outperform lithium-ion batteries in certain regards. CAES can be cost-competitive with both pumped-storage and battery storage, providing easy scalability for whatever size is needed. Importantly, it brings a low risk of fires with it--a serious concern for BESS units in which batteries can ignite. In addition, CAES systems don't degrade as much over time. Batteries offer only a limited lifespan and begin degrading almost from the first moment of use.
Cache Power's Project
With this in mind, EPC firm Federation Group, through its Cache Power unit, is moving ahead with a CAES facility in Alberta. This CAES facility will store the compressed air in subterranean mined salt caverns. Natural gas or hydrogen will heat the air before it passes through power-generating turbines.This CAES facility represents significantly more power availability than most BESS projects, consisting of two construction phases that will each result in 320 megawatts (MW) of available energy, resulting in an aggregate power capacity of 640 MW available when needed. Construction of the first phase could possibly commence by the end of this year, putting the first 320 MW on track to be finished in 2027, followed by the second half of the project, which Industrial Info estimates will be completed sometime in 2030. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can learn more by viewing the related project reports.
Other Planned CAES Projects
And as this project gets rolling, others across North America also are preparing to kick off or are already underway. Perhaps the furthest along of these CAES projects is the Magnum Energy Facility in Millard County, Utah. Construction of this project kicked off in 2022 and is progressing toward final completion. Like the Alberta project, the Magnum plant will employ salt caverns for storage and also will feature hydrogen generation. The air compression itself will be fueled by natural gas, according to the related project report in Industrial Info's GMI database. Demonstrating the interest that some of the world's largest energy companies show in this technology, Chevron Corporation (Houston, Texas) became the majority stakeholder in the project in 2023. Subscribers can learn more by viewing the project report.But plenty more CAES projects are in various stages of development in both the U.S. and Canada. Perhaps the most significant of these is the planned 500-MW, 1,400-megawatt-hour (MWh) Willow Rock facility that is planned near Rosamond, California. With a price tag of more than $1.5 billion, this facility would use Hydrostor's (Toronto, Ontario) A-CAES technology, which also incorporates stored heat. With such a large price tag and the need to construct a purpose-built storage cavern, this project may be a bit more difficult to get off the ground than its smaller counterparts, but all being well, the plant could began operating within a couple of years. Subscribers can click here to learn more.
A similarly sized 500-MW CAES facility, with a somewhat reduced price tag, but still approaching US$1 billion, is planned for Napanee, Ontario, in Canada. This facility also would use Hydrostor technology and employ three generator sets for power generation. While not yet started, this project could begin turning dirt as soon as next year and be ready before the end of the decade. Subscribers can click here to learn more about the project.
Perhaps the most feasible deployment of Hydrostor's CAES technology is set for Lowville in upstate New York, about 80 miles northeast of Syracuse. This CAES project brings a lower generating capacity than the other projects discussed, but also a much more easily digested price tag of around $285 million. Requiring notably less time to construct, if work on this project begins as anticipated in early 2028, it could be providing stored energy as soon as 2029. Subscribers can learn more by viewing the project report.
While CAES projects may not be as numerous as BESS deployments, they nevertheless offer important pluses when compared to the more common battery technology. Perhaps their biggest drawback is the need for a large cavern to store the air, which can be dug or incorporate existing subterranean structures. This requirement limits the locations for CAES deployment, but in areas where the technology is achievable, CAES may very well offer one of the cleanest and long-lasting forms of energy storage available.
Key Takeaways
- With the selection of Babcock & Wilcox for engineering studies, Cache Power's planned CAES facility in Alberta, is moving along.
- While not as common as battery energy storage, other CAES facilities are in development across North America, with Hydrostor being a key technology provider.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
