Energy Vault secures $300m investment to launch energy storage subsidiary

Energy Vault Holdings Inc said Thursday it has signed an exclusivity agreement for a $300 million preferred equity investment to fund the launch of Asset Vault, a wholly owned subsidiary that will develop, build and operate grid-scale energy storage projects worldwide.

The investment, expected to close within 30 to 60 days pending regulatory approvals, will back the company’s independent power producer (IPP) strategy and accelerate the deployment of 1.5 gigawatts of storage capacity in priority markets.

BESS Projects In US 

Asset Vault will consolidate Energy Vault’s existing and contracted projects, including the Cross Trails BESS (57 MW/114 MWh) and Calistoga Resiliency Center (8.5 MW/293 MWh) in the US, as well as the recently acquired Stoney Creek BESS (125 MW/1 GWh) in New South Wales, Australia. The pipeline also includes about 3 GW of battery storage projects across the US, Europe and Australia, most supported by long-term offtake contracts.

Energy Vault said it will retain voting and operational control of Asset Vault and self-perform engineering, procurement and construction, aiming to generate more than $100 million in recurring annual EBITDA from the platform within three to four years.

“The $300 million investment and the creation of Asset Vault unlock the full potential of our ‘own and operate’ strategy with immediate investment flexibility,” said Robert Piconi, Energy Vault’s chairman and chief executive.

The preferred equity deal is non-dilutive to common shareholders and includes milestones for equity participation in the listed company.