Babcock & Wilcox, Cache Power Win Grant for BrightLoop™ Clean Energy Project in Canada
Babcock & Wilcox (B&W) (NYSE: BW) announced that it has been awarded a contract by Cache Power Corp. to perform an engineering study for the Marguerite Lake Compressed Air Energy Storage (CAES) and Hydrogen Hub Project, located near La Corey, Alberta, Canada. The initiative, which marks a significant step toward large-scale clean energy deployment in the province, integrates advanced storage, hydrogen generation, and carbon capture technologies.
The engineering study will be partially funded by a grant from Alberta Innovates, a provincial crown corporation established and financed by the Government of Alberta. Alberta Innovates’ mission is to drive innovation, sustainability, and economic growth across the province. This support underscores the importance of the project in shaping Alberta’s clean energy future and its commitment to achieving net-zero emissions.
Pioneering Energy Storage and Decarbonization in Alberta
The Marguerite Lake project, spearheaded by Cache Power, will feature a 640-megawatt (MW) CAES facility, constructed in two identical 320 MW phases. When complete, the facility will store surplus renewable electricity in underground salt caverns as compressed air — a reliable, large-scale energy storage method. During periods of peak electricity demand, the stored air will be released and expanded through turbines to generate electricity back to the grid.
Unlike traditional energy storage solutions, the CAES system at Marguerite Lake incorporates natural gas or hydrogen reheating to enhance turbine efficiency and power output. This approach ensures continuous, dispatchable electricity generation — critical for maintaining grid stability as Alberta transitions to higher shares of renewable energy sources such as wind and solar.
To achieve net-zero emissions, the project will leverage B&W’s BrightLoop™ technology, an advanced chemical looping process capable of producing clean hydrogen and capturing carbon dioxide simultaneously. BrightLoop will enable the facility to generate up to 60 tonnes of hydrogen per day while producing a nearly pure stream of CO₂ for capture and geological storage. This integration represents a major innovation in combining long-duration storage with carbon capture and hydrogen production within a single system.
A Collaboration Driving Clean Technology Forward
“We thank Alberta Innovates for the support they’ve provided for this ground-breaking net-zero project and we thank Cache Power for their innovative mindset to add BrightLoop hydrogen generation to the project,” said Brandy Johnson, Chief Technology Officer at Babcock & Wilcox.
Johnson emphasized that the BrightLoop system’s versatility makes it suitable for a broad spectrum of applications — from industrial decarbonization to hydrogen hubs and energy storage projects. “We’re excited to begin engineering for this project and take the next step forward with Cache Power,” she added.
Cache Power’s leadership echoed similar enthusiasm. Jordan Costley, President of Cache Power, highlighted the project’s significance in Alberta’s evolving energy ecosystem. “Our project represents a major step toward clean, dispatchable, and long-duration energy storage in Alberta,” Costley said. “By combining compressed air energy storage with hydrogen production, storage, and use, we’re creating a sustainable solution to support grid reliability while helping Alberta meet its decarbonization goals.”
This partnership demonstrates how combining engineering innovation with provincial support can accelerate the development of energy infrastructure designed for the net-zero era. By merging CAES and hydrogen production technologies, the Marguerite Lake project exemplifies how multiple clean energy systems can work together to deliver both energy security and emissions reduction.
The Role of BrightLoop™ Technology
Babcock & Wilcox’s BrightLoop™ process lies at the core of this project’s clean energy and carbon management strategy. BrightLoop is based on chemical looping technology, which uses a solid oxygen carrier — B&W’s proprietary TranspO₂rt™ particle — to transfer oxygen between reactors during fuel conversion. This enables the production of steam, hydrogen, or syngas while isolating CO₂ for capture and storage.
The system is flexible in its fuel use, capable of operating on solid, liquid, or gaseous feedstocks, including natural gas, biomass, and waste-derived fuels. This adaptability allows BrightLoop to be deployed across a variety of sectors — including power generation, industrial heat, and hydrogen production — where reducing carbon intensity is increasingly vital.
By integrating BrightLoop at the Marguerite Lake facility, B&W and Cache Power aim to demonstrate the commercial scalability of combining clean hydrogen generation with long-duration energy storage and carbon capture. This model could serve as a blueprint for future projects in other regions seeking to balance reliability, sustainability, and cost-effectiveness in their energy systems.
Strengthening Alberta’s Position in the Clean Energy Transition
Alberta, historically known for its rich fossil fuel resources, is rapidly diversifying its energy portfolio through innovation and technology development. Alberta Innovates’ funding support for the Marguerite Lake CAES and Hydrogen Hub Project highlights the province’s strategic investment in emerging clean technologies that not only reduce emissions but also stimulate local job creation and industrial competitiveness.
The project’s integration of BrightLoop technology aligns with both provincial and federal decarbonization objectives, contributing to Canada’s national goal of achieving net-zero emissions by 2050. Moreover, by advancing long-duration energy storage, the project addresses one of the most pressing challenges in renewable integration — the intermittency of solar and wind power — providing the flexibility required for a stable, reliable grid.
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