SoCalGas Supports Nostromo Energy's Installation of an Innovative Energy Storage Solution Designed to Enhance Grid Resilience and Lower Energy Expenses at Beverly Hilton and Waldorf Astoria Hotels

Rhea-AI Summary

Southern California Gas Company (SoCalGas) successfully installed Nostromo Energy's IceBrick system at the Beverly Hilton and Waldorf Astoria hotels, reducing the need for air conditioning during peak electric demand, cutting energy use and costs, and decreasing greenhouse gas emissions. The IceBrick system uses off-peak electricity to convert water into ice, which is then used to cool the building's air conditioning system during peak demand hours. SoCalGas has supported nearly 4,000 projects applying for over $300 million in incentives, with energy efficiency programs reducing greenhouse gas emissions by 1.2 million metric tons of carbon dioxide.

Positive

• Successful installation of the IceBrick system at two prominent hotels in Southern California
• Reduction in energy use, costs, and greenhouse gas emissions
• Involvement in the California Public Utilities Commission's Self-Generation Incentive Program (SGIP)
• Use of off-peak electricity to convert water into ice for cooling purposes
• Support for numerous projects applying for incentives and reducing greenhouse gas emissions

Negative

• None.

Insights

Energy Sector Analyst

The integration of the IceBrick system by Nostromo Energy into the operations of the Beverly Hilton and Waldorf Astoria hotels signifies a strategic advancement in energy efficiency and sustainability within the hospitality industry. This technology leverages off-peak electricity to create ice, which is then used to cool buildings during periods of high demand, thus reducing reliance on traditional, less efficient cooling systems. This shift not only aligns with California's aggressive climate goals but also presents a cost-saving measure for businesses facing high energy expenses.

The financial implications are twofold: firstly, the reduction in energy costs directly improves the operational bottom line for the hotels. Secondly, participation in the Self-Generation Incentive Program (SGIP) offers incentives that can offset the initial costs of adopting such technologies. For investors, the long-term benefits may include enhanced profitability and brand value due to the hotels' commitment to sustainability. The hospitality sector could see a ripple effect as competitors seek to adopt similar innovations to remain competitive and compliant with evolving regulations.

Sustainability Expert

SoCalGas's collaboration with Nostromo Energy to implement the IceBrick system at prominent hotels can be seen as a microcosm of the broader shift towards decarbonization in the energy sector. By utilizing renewable energy sources during off-peak hours for energy storage, the system exemplifies a practical application of clean energy integration that other industries may replicate. The SGIP's expansion to include Large Thermal Energy Storage Systems signals a policy-driven push towards innovative solutions for energy management and carbon reduction.

For stakeholders, the key takeaway is the potential for scalability of such technologies, which can contribute significantly to reducing greenhouse gas emissions. By achieving a reduction of 1.2 million metric tons of carbon dioxide, equivalent to removing over 250,000 cars annually, SoCalGas's energy efficiency programs demonstrate the tangible impact of such initiatives. This progress is not only environmentally significant but also reinforces the company's commitment to achieving net-zero greenhouse gas emissions by 2045, a goal that is becoming increasingly important to environmentally conscious investors and consumers alike.

Renewable Energy Analyst

The use of the IceBrick system represents an innovative approach to energy storage and demand response within the renewable energy sector. By storing 'cold energy' during low-demand periods, when the grid is flush with renewable energy and releasing it during peak hours, the system effectively acts as a buffer that enhances grid stability. This technology provides a clear example of how thermal energy storage can complement battery storage solutions, offering a diversified approach to managing energy loads and reducing the carbon footprint of large-scale operations.

From an investment perspective, this development could signal a growing market for thermal energy storage solutions, particularly in states with aggressive renewable energy targets like California. As more utilities and businesses adopt similar technologies, we may see a positive impact on the stocks of companies involved in the production and implementation of such systems. Furthermore, the success of these projects could attract more government incentives, accelerating the adoption rate and potentially leading to significant growth within the sector.

The IceBrick System could reduce the hotels' energy bills and greenhouse gas emissions

LOS ANGELES and IRVINE, Calif., Jan. 22, 2024 /PRNewswire/ -- Southern California Gas Company (SoCalGas) today announced the successful installation of an innovative energy savings solution at the Beverly Hilton and Waldorf Astoria hotels, that helps reduce the need for air conditioning during peak electric demand, reducing greenhouse gas emissions, energy use, and costs. Nostromo Energy's IceBrick system will receive incentives from the California Public Utilities Commission's (CPUC) Self-Generation Incentive Program (SGIP), which is administered by SoCalGas. SoCalGas assisted Nostromo Energy in applying for the incentive funding and in the project's technical development. The SGIP program now includes Large Thermal Energy Storage Systems, with Nostromo Energy's system being the first approved for participation under this category. 

"SoCalGas supports a variety of innovations aimed at bolstering the strength and resilience of our energy grid," said Don Widjaja, Vice President of Customer Solutions at SoCalGas. "The IceBrick system serves as a prime example, as it not only helps advance California's climate goals, but helps address the challenges of electricity demand fluctuations throughout the day. Through collaboration with various industry stakeholders, we're supporting diverse solutions with the goal to obtain a more reliable, resilient, and sustainable energy future."

Nostromo Energy's technology uses electricity from the grid during off-peak hours – a time when the grid relies more on renewable sources like solar and wind – to convert water into ice. This "cold energy" is stored in modular cells and is later released during peak demand hours. This method can cool the building's air conditioning system without relying on power-intensive chillers.

"We're thrilled to work with SoCalGas and the Self Generation Incentive Program. Our IceBrick technology is a breakthrough – buildings can be retrofitted to store and discharge megawatt hours of electricity, cutting cooling costs during peak hours and providing critically-needed demand flexibility to the power grid," said Boaz Ur, Nostromo's Chief Business Development Officer. "Using Nostromo's technology, utilities can continue to work with their largest commercial and industrial customers to save on energy costs, reduce carbon emissions, and gain resilience."

SGIP is designed to incentivize generation and storage technologies, including projects fueled by renewable natural gas (RNG) and hydrogen, which aim to reduce greenhouse gases, increase grid reliability, and provide customer bill savings and resiliency during electric grid-outage events.  

Since its inception, SoCalGas has supported nearly 4,000 projects that have applied for more than $300 million in incentives. These types of energy storage and cleaner fuel-powered technologies highlight the diverse solutions available to decarbonize customer end-uses.

In line with these efforts, SoCalGas' energy efficiency programs have also generated over $1 billion in avoided energy costs and have reduced greenhouse gas emissions by 1.2 million metric tons of carbon dioxide, the equivalent of removing more than 250,000 cars annually.

SoCalGas is among the first and largest natural gas utilities in the United States to announce its aim to have net-zero greenhouse gas emissions by 2045. The company was awarded the top "Business Transformation Award" at Reuters Events' 2022 Responsible Business Awards for having established truly transformative sustainability priorities with the potential to create impact at scale in the energy sector and beyond.

To learn more about the SGIP program click here. For access to other SoCalGas customer savings programs and incentives click here.

About SoCalGas
Headquartered in Los Angeles, SoCalGas^® is the largest gas distribution utility in the United States. SoCalGas delivers affordable, reliable, and increasingly renewable gas service to over 21 million consumers across 24,000 square miles of Central and Southern California. We believe gas delivered through the company's pipelines will continue to play a key role in California's clean energy transition—providing electric grid reliability and supporting wind and solar energy deployment. 

SoCalGas' mission is to build the cleanest, safest and most innovative energy infrastructure company in America. In support of that mission, SoCalGas aspires to achieve net-zero greenhouse gas emissions in its operations and delivery of energy by 2045 and to replace 20 percent of its traditional natural gas supply to core customers with renewable natural gas (RNG) by 2030. Renewable natural gas is made from waste created by landfills and wastewater treatment plants. SoCalGas is also committed to investing in its gas delivery infrastructure while keeping bills affordable for customers. SoCalGas is a subsidiary of Sempra (NYSE: SRE), an energy infrastructure company based in San Diego. 

For more information visit socalgas.com/newsroom or connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook.  

About Nostromo Energy

Nostromo Energy's ice-based energy storage solution is redefining energy storage for commercial and industrial buildings, helping them become sustainable energy storage assets, and reduce energy costs and carbon emissions. The Nostromo IceBrickⓇ system uses ice to store energy when electricity prices are low and renewable energy is abundant, and discharge the energy to avoid purchasing electricity that is carbon intensive and expensive. In this way, Nostromo helps accelerate the renewable revolution and paves the way to a carbon free electric grid, while offering a safe, clean and financially beneficial system to building owners. The IceBrickⓇ is non-flammable, modular and compact, easily retrofitted to existing commercial and industrial buildings. To learn more about Nostromo, visit www.nostromo.energy.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise. 

In this press release, forward-looking statements can be identified by words such as "believe," "expect," "intend," "anticipate," "contemplate," "plan," "estimate," "project," "forecast," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "construct," "develop," "opportunity," "initiative," "target," "outlook," "optimistic," "poised," "maintain," "continue," "progress," "advance," "goal," "aim," "commit," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. 

Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: decisions, investigations, inquiries, regulations, denials or revocations of permits, consents, approvals or other authorizations, renewals of franchises, and other actions by the (i) California Public Utilities Commission (CPUC), U.S. Department of Energy, U.S. Internal Revenue Service and other governmental and regulatory bodies and (ii) U.S. and states, counties, cities and other jurisdictions therein where we do business; the success of business development efforts and construction projects, including risks in (i) completing construction projects or other transactions on schedule and budget, (ii) realizing anticipated benefits from any of these efforts if completed, and (iii) obtaining third-party consents and approvals; macroeconomic trends or other factors that could change our capital expenditure plans and their potential impact on rate base or other growth; litigation, arbitrations and other proceedings, and changes to laws and regulations, including those related to tax and trade policy; cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third parties with which we conduct business, including the energy grid or other energy infrastructure, all of which continue to become more pronounced; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money on favorable terms and meet our obligations, including due to (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, or (iii) rising interest rates and inflation; failure of our counterparties to honor their contracts and commitments; the impact on affordability of our customer rates and our cost of capital and on our ability to pass through higher costs to customers due to (i) volatility in inflation, interest rates and commodity prices and (ii) the cost of the clean energy transition in California; the impact of climate and sustainability policies, laws, rules, regulations, disclosures and trends, including actions to reduce or eliminate reliance on natural gas, increased uncertainty in the political or regulatory environment for California natural gas distribution companies, the risk of nonrecovery for stranded assets, and our ability to incorporate new technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through regulatory mechanisms or insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas and natural gas storage capacity, including disruptions caused by failures in the pipeline system or limitations on the withdrawal of natural gas from storage facilities; and other uncertainties, some of which are difficult to predict and beyond our control. 

These risks and uncertainties are further discussed in the reports that the company has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements. 

Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Texas Utilities, Oncor Electric Delivery Company LLC (Oncor) and Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova) are not the same companies as the California utilities, San Diego Gas & Electric Company or Southern California Gas Company, and Sempra Infrastructure, Sempra Infrastructure Partners, Sempra Texas, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC.

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SOURCE Southern California Gas Company

FAQ

What is the IceBrick system and how does it work?

The IceBrick system uses off-peak electricity to convert water into ice, which is then used to cool the building's air conditioning system during peak demand hours.

What is the role of SoCalGas in the installation of the IceBrick system?

SoCalGas assisted Nostromo Energy in applying for incentive funding and in the project's technical development.

How many projects has SoCalGas supported for incentives?

SoCalGas has supported nearly 4,000 projects applying for over $300 million in incentives.

How much have energy efficiency programs reduced greenhouse gas emissions by?

Energy efficiency programs have reduced greenhouse gas emissions by 1.2 million metric tons of carbon dioxide.

What is the aim of SoCalGas in terms of greenhouse gas emissions?

SoCalGas aims to have net-zero greenhouse gas emissions by 2045.