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Engie North America has paused its plans to build a lithium battery storage facility in San Juan Capistrano, California, after nearly two years of review.
The company sent a letter to the California Energy Commission on Monday, requesting the suspension of the project to explore alternative locations and market conditions that could enhance the project's economic viability. The proposed Compass Energy Storage Project was designed to be a 250-megawatt battery energy storage system (BESS) that would collect excess energy from the power grid, store it, and discharge it back during peak demand periods.
Engie had planned to purchase 41 acres from Saddleback Church, using 13 acres for the storage facility and preserving the rest as natural open space with trails. However, due to commercial and market changes, Engie is reconsidering the location. Renee Robin, Engie's director of permitting and planning, stated that they would evaluate other sites to implement their transmission position.
The project faced opposition from local residents and groups like BLESSIN (Ban Lithium Energy Storage Systems in Neighborhoods) due to concerns about fire risks and environmental impacts. Cathleen Pryor, a Laguna Niguel realtor and BLESSIN member, expressed gratitude to city leaders for listening to community concerns.
The California Energy Commission had been reviewing the project under a 2022 law that expanded its authority to facilitate renewable energy projects. Engie is seeking a pause or extension of the 270-day certification process, but did not specify a timeframe. With the project on hold, the land sale is also voided, according to Engie spokesperson Tim Lineberger. The project had also been linked to a $750,000 grant for the South Orange County Community College District, which would have supported work-based learning programs at Saddleback College. However, the grant was contingent on the project's approval, which is now uncertain.