The DOE announced the finalization of a $17.1 million loan guarantee for AES Westover’s energy storage facility in N.Y. A123 Systems will supply advanced Li-ion battery cells for a 20 MW energy storage system.

“The AES project helps reduce carbon emissions and strengthens our energy infrastructure by allowing for more renewable energy sources like solar and wind to contribute to the electrical grid,” says Secretary Chu.

According to the DOE press release, this venture will reduce carbon emissions by 70 percent compared to frequency regulation provided by fossil energy suppliers. The project eliminates the need to burn fossil fuels and instead uses battery technology.

The release goes on to say that the DOE has issued loan guarantees to support 16 clean energy projects totaling nearly $16.5 billion. Together, the projects will produce over 37 million megawatt-hours, enough clean energy to power over 3.3 million homes.

The guarantee has been in the works for some time, having first been announced in August.