Latest news with #project financing
Yahoo
4 days ago
- Business
- Yahoo
Energy Vault secures $300m for new subsidiary
Swiss tech company Energy Vault has announced an exclusivity agreement for a substantial $300m preferred equity investment aimed at launching Asset Vault, a fully consolidated subsidiary dedicated to the development, construction, ownership and operation of energy storage assets. The move aligns with the company's independent power producer (IPP) strategy to accelerate the deployment of 1.5GW in selected markets. The finalisation of the deal is contingent on customary regulatory and closing conditions. Once concluded, Asset Vault will become a centralised entity within Energy Vault's structure for owned energy storage assets. The substantial investment will be channelled into project development costs, acquisitions, and both major and minor equity stakes that bolster attractive project financing opportunities essential for constructing, commissioning and managing these assets. Asset management under Asset Vault will encompass Energy Vault's expanding portfolio of contracted and operational storage projects. Currently identified are projects amounting to 3GW and over 12GWh. This includes two active ventures: the Cross Trails battery energy storage system (BESS) (57MW/114 megawatt hours (MWh) in the US state of Texas, and Calistoga Resiliency Centre (8.5MW/293MWh) in California. Additionally, the Stoney Creek BESS — a recently acquired 125MW/1GWh project in New South Wales, Australia — is now part of Energy Vault's international own-and-operate portfolio following Foreign Investment Review Board (FIRB) approval. Energy Vaults' pipeline has 3GW worth of battery energy storage systems (BESS), spanning the US, Europe and Australia. Despite forming Asset Vault as a subsidiary entity for its owned assets' consolidation purposes, Energy Vaults retains voting rights and operational control — capitalising on its comprehensive development expertise from engineering procurement construction (EPC) through asset management. With the initial injection of $300m into Asset Vaults' operations, it is projected that more than $100m could be generated annually in recurring earnings before interest, taxation, depreciation and amortisation (EBITDA) within three to four years as part of this consolidation effort. Energy Vault is undertaking the project design, construction and commissioning, and the execution of long-term service agreements (LTSA) under contracts from Asset Vault. This approach is expected to provide additional cash flow streams and enhance liquidity for the parent company, Energy Vault Holdings. Energy Vault chairman of the board and CEO Robert Piconi stated: 'The $300m 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 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 centre AI infrastructure.' "Energy Vault secures $300m for new subsidiary" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-07-2025
- Business
- Yahoo
Energy Storage Group Closes Financing for Texas BESS Project
A global developer of grid-scale energy storage projects said it has closed project financing and completed a 10-year offtake agreement for a battery energy storage system (BESS) installation in Texas. Energy Vault, with headquarters in California and offices in Virginia, Switzerland, and Australia, on July 24 said the $18-million project financing for the Cross Trails project is the latest in a series of moves by the company after equity investments in new "Own and Operate" assets. The Cross Trails BESS, located in Scurry County, entered full commercial operation in June. The project has a decade-long offtake deal with power marketer Gridmatic. The installation also expects to receive more than $12 million in federal investment tax credit-related funds this summer as part of a previously executed sale agreement. Energy Vault on Thursday said financing for Cross Trails "delivers an attractive levered IRR [internal rate of return] of ~15% while building on the successful execution of Energy Vault's 'Own & Operate' asset management strategy, following the successful close earlier this year of the $28-million project financing for the Calistoga Resiliency Center microgrid in California." Energy Vault said it will report a quarterly increase in cash of more than 20% during its second-quarter earnings call on August 7, after an increase of about 60% in the previous quarter. Project Serves ERCOT Market Cross Trails is a 57-MW/114-MWh BESS that will serve the Electric Reliability Council of Texas (ERCOT) region. Energy Vault said the installation was completed ahead of schedule, "successfully meeting all construction milestones through effective project management and close collaboration among engineering, procurement, and construction teams." The project is providing energy and ancillary services to support renewable energy production and improve grid resiliency in ERCOT's territory. The offtake agreement with Gridmatic is the "first physically settled revenue floor contract to be signed for a BESS in ERCOT," according to Energy Vault. The BESS leverages Energy Vault's fully integrated solution stack of hardware, software, and service offerings. Cross Trails also serves as the first deployment of Energy Vault's second-generation B-VAULT AC product, enabling Energy Vault to deliver the system quickly and at low cost while also providing higher levels of system availability in the ERCOT region. The system is equipped with Energy Vault's VaultOS Energy Management System to control, manage, and optimize the BESS operations. "The successful financing of our Cross Trails BESS project represents another significant milestone in executing our 'Own & Operate' strategy, delivering strong returns that will generate predictable, high margin and recurring revenue streams," said Robert Piconi, chairman and CEO of Energy Vault. "Following our recent Calistoga Resiliency Center project financing and the acquisition of the 125-MW/1-GWh Stoney Creek BESS in Australia, this latest financing close demonstrates our ability to attract premium financing partners while building a diversified portfolio of attractive energy storage assets across the globe. With an attractive mid-teen levered IRR and a 10-year offtake agreement in place, the Cross Trails BESS is another example of our commitment to creating long-term shareholder value through strategic energy storage asset ownership and operation in key growth markets." Agreement With Gridmatic "Energy Vault's proven expertise and ability to develop and deploy world-class reliable, and cost-effective energy storage solutions makes them a perfect partner for Gridmatic," said Max Wytock, Gridmatic's CEO, in a statement. "This BESS will deliver increased grid reliability and affordability for Texas residents as load growth continues to accelerate. We look forward to a strong partnership with Energy Vault for years to come." Today's announcement marks the second close of project financing for Energy Vault projects, coming on the heels of the successful close of $28 million in financing for the company's Calistoga Resiliency Center project in California. The financing also follows Energy Vault's announced acquisition of the 125-MW/1,000-MWh Stoney Creek BESS in the Australian market. Energy Vault on Thursday said the company has a "robust pipeline of projects in development" within the company's "Own & Operate" strategy, with a "long-term vision for generating predictable, recurring and high margin tolling revenue streams with the goal of delivering sustainable, long-term value to shareholders." —Darrell Proctor is a senior editor for POWER.
