Energy Vault Holdings, Inc. (“Energy Vault” or the “Company”), a global leader in grid-scale energy storage solutions, today announced it has entered into an exclusivity agreement for a $300 million preferred equity investment to fund the launch of Asset Vault, a fully consolidated subsidiary of Energy Vault dedicated to develop, build, own and operate energy storage assets, stand-alone or paired with generation facilities, in the most attractive energy markets globally.
The investment will support Energy Vault’s IPP strategy to build, own, and operate energy storage assets, accelerating the deployment of 1.5GW in attractive priority markets. Leveraging its significant operational expertise in efficiently designing, building, and operating energy storage assets, Energy Vault can achieve lower $/kWh CapEx as well as lower asset OpEx through its leading Energy Management System software platform for efficient system operation, safety, reliability and economic dispatching to enhance project IRRs.
Upon final closing—subject to customary regulatory and closing conditions anticipated in the next 30-60 days — “Asset Vault” will be formed as a fully consolidated subsidiary for Energy Vault’s owned energy storage assets supported by long-term offtake agreements that ensure project monetization. The $300 million investment will be utilized for project development expenses, project acquisition, and both majority and minority equity investments to support attractive project financing to deliver the asset construction, commissioning, and operation. The preferred equity is non-dilutive to common shareholders and includes milestones for equity participation in the listed company for strong shareholder alignment.
“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 of the Board 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.”
Asset Vault will consolidate Energy Vault’s growing portfolio of contracted and operational storage projects, with 3GW and 12+ GWH of top-tier projects identified, acquired, and/or in operation, including:
- Operational projects: Cross Trails BESS (57MW/114MWh) and Calistoga Resiliency Center (8.5MW/293MWh):
- $100m deployed across the first two projects, offset by project financing and monetization of investment tax credits
- Both Projects are supported by long-term offtake agreements and project-level debt financing, creating high-visibility, profitable, and recurring cash flows.
- Contracted Project: Stoney Creek BESS, the recently acquired 125 MW / 1.0 GWh in New South Wales, Australia, backed by up to a 14-year Long-Term Energy Service Agreement (LTESA) with AEMO Services as the Consumer Trustee under the New South Wales Electricity Infrastructure Roadmap, ensuring stable capacity revenues.
- Robust pipeline of ~ 3 gigawatts (GW) of battery energy storage systems (BESS) across the U.S., Europe and Australia. These projects are underpinned by long-term revenue contracts, with the US projects benefiting from Investment Tax Credit (ITC) incentives, positioning the platform for 15% + targeted levered IRRs over a 20-year asset life.
Critically, Energy Vault will retain voting and operational control of Asset Vault, leveraging its fully integrated development, EPC, and asset management capabilities. By self-performing engineering, procurement, and construction (EPC) for projects within the Asset Vault platform, Energy Vault expects to generate incremental consolidated revenue and high gross margins while unlocking strategic operating leverage across its value chain.
Within the initial investment of $300 million, Asset Vault is expected to generate $100 million+ in recurring annual EBITDA in the coming 3-4 years as a consolidated subsidiary, which is additive to Energy Vault’s existing Energy Storage Solutions business that makes up the majority of the company’s revenue today. In addition, as was the case with the first two energy assets already in service in the US in Texas and California, Energy Vault will self-perform the project design, construction, commissioning and execution of long-term service agreements (LTSA) under contracts from Asset Vault, thereby providing additional cash flow streams and liquidity to the parent company (Energy Vault Holdings).
Energy Vault’s technology-agnostic approach and flexible business model spans energy-as-a-service, project development and sale, and long-term asset ownership, enabling value capture across the energy storage lifecycle.
Virtual Investor Day
In conjunction with the close of the transaction, Energy Vault intends to host a Virtual Investor Day to provide a comprehensive overview of the Asset Vault platform, its project pipeline, financial projections, and long-term strategic vision. Additional details will be shared upon closing.
