Grid-scale energy storage solutions provider Energy Vault announced that it has entered into an agreement for a $300 million preferred equity investment, aimed at funding the launch of Asset Vault, a new subsidiary that will build, own and operate energy storage assets across global markets.
According to Energy Vault, the investment will be provided by a leading multi-billion-dollar infrastructure fund, and is expected to unlock more than $1 billion in capital expenditures to accelerate the deployment of 1.5 gigawatts (GW) of energy storage projects in the U.S., Europe, and Australia.
Asset Vault will consolidate Energy Vault’s owned storage portfolio, including a 3 GW pipeline of battery energy storage systems (BESS) projects, and leverage the company’s internal engineering, procurement, construction, and operational capabilities, the company added.
Under the new structure, Asset Vault will contract the project design, construction, commissioning and service agreements to Energy Vault, with Energy Vault retaining voting and operational control of Asset Vault. According to Energy Vault, Asset Vault is expected to generate $100 million+ in recurring annual EBITDA in the coming 3-4 years, which will be additive to the company’s existing Energy Storage Solutions business that currently makes up the majority of its business.
The company said that the new capital will be used for project development expenses, project acquisition, and equity investments to support attractive project financing to deliver the asset construction, commissioning and operation.
Robert Piconi, Chairman of the Board and CEO of Energy Vault, said:
“The $300 million investment and the creation of Asset Vault unlock the full potential of our ‘Own and Operate’ storage IPP strategy with immediate investment flexibility. By combining long-term contracted revenues with strategic capital and integrated, self-performed project execution, we are well positioned to scale resilience, mission-critical energy infrastructure to meet the current needs driven by the penetration of renewable energy and the massive increases in energy demand driven by data center AI infrastructure.”
Alongside the launch of the new platform, Energy Vault announced the completion of its acquisition of the Stoney Creek Battery Energy Storage System (BESS) in New South Wales, Australia, following Foreign Investment Review Board (FIRB) approval.
The 125 MW/1,000 MWh project – initially announced in March – now enters the Asset Vault portfolio as a fully controlled and operated asset, reinforcing Energy Vault’s expansion strategy in the Australian market.
