$300 million in non-dilutive preferred equity will unlock over $1 billion in capital expenditure for 1.5GW of global energy storage projects.
New Asset Vault platform expected to generate over $100 million in recurring annual EBITDA within 3–4 years.
Energy Vault will maintain control and execution of project design, construction, and long-term service contracts to strengthen operating margins and parent company liquidity.
Energy Vault Holdings, Inc. has entered into an exclusivity agreement for a $300 million preferred equity investment to launch Asset Vault, a wholly owned subsidiary that will develop, own, and operate energy storage projects globally. The funding comes from a multi-billion-dollar infrastructure fund and is expected to enable over $1 billion in capital expenditure for 1.5 gigawatts of projects across the U.S., Europe, and Australia.
The investment supports Energy Vault’s strategy to build, own, and operate energy storage systems, both standalone and hybrid with generation assets, in high-priority markets. Asset Vault will consolidate the company’s existing and contracted energy storage portfolio and serve as a platform for long-term recurring revenue.
“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,” said Robert Piconi, Chairman and CEO of Energy Vault. “By combining long-term contracted revenues with strategic capital and integrated, self-performed project execution, we are well positioned to scale resilient, 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.”
Energy Vault will retain voting and operational control of Asset Vault. The subsidiary will benefit from the parent company’s vertically integrated development, engineering, procurement, construction, and asset management capabilities—allowing Energy Vault to capture additional margin and generate incremental consolidated revenue.
RELATED ARTICLE: Energy Vault Selects Chart Industries Hydrogen Fueling Solution for Largest Green Hydrogen Long-Duration Energy Storage System in the U.S.
Asset Vault’s initial portfolio includes:
Operational Projects: Cross Trails BESS (57MW/114MWh) and Calistoga Resiliency Center (8.5MW/293MWh), with $100 million already deployed and supported by long-term offtake agreements and project-level debt.
Contracted Project: Stoney Creek BESS (125MW/1.0GWh) in New South Wales, Australia, backed by a Long-Term Energy Service Agreement of up to 14 years with AEMO Services.
Pipeline: Approximately 3GW of battery energy storage systems under development globally, including in markets benefiting from U.S. Investment Tax Credits (ITC), supporting targeted levered IRRs of 15%+ over a 20-year asset life.
Energy Vault’s flexible, technology-agnostic model spans energy-as-a-service, project development and sale, and long-term asset ownership. Asset Vault will enhance this offering by locking in recurring EBITDA—projected to exceed $100 million annually within the next 3–4 years.
As with the first two U.S. projects, Energy Vault will self-perform design, construction, and long-term service agreements for Asset Vault projects, creating “incremental cash flows and liquidity to the parent company,” the firm noted.
The transaction is expected to close within 30–60 days, subject to customary regulatory approvals and conditions. The preferred equity structure is non-dilutive to Energy Vault’s common shareholders and includes milestone-linked participation in the listed company to ensure alignment between the investor and existing shareholders.
Follow ESG News on LinkedIn
