Energy Vault raises USD 300 m to build and operate energy storage assets
Energy Vault Holdings, a leader in grid-scale energy storage solutions, closed a $300 million preferred equity investment with North American infrastructure investment firm OIC L.P., officially launching “Asset Vault,” the Company’s fully consolidated subsidiary dedicated to developing, building, owning and operating energy storage assets globally.
The completion of this transaction with OIC represents a validation of Energy Vault’s IPP (Independent Power Producer) strategy to build, own and operate energy storage assets, accelerating the deployment of +1.5GW in attractive priority markets and upper-tier IRR projects. The preferred equity instrument is non-dilutive to common shareholders and includes milestones for common equity participation in the listed company for strong shareholder alignment.
Including the recapitalization of the recently completed Calistoga Resiliency Center (CRC) in California, as well as the Cross Trails BESS, located in Snyder, Texas, Energy Vault expects to draw nearly $200 million over the next six months to commence work on two additional late-stage projects in the U.S. and Australia, which includes the 125MW / 1,000MWh Stoney Creek BESS, along with the advancement of additional pipeline projects under development.
The Company expects Asset Vault to generate over $100 million in recurring annual EBITDA within the next 3-4 years, representing significant additive value to Energy Vault’s existing Energy Storage Solutions business.
Energy Vault develops and deploys utility-scale energy storage solutions designed to transform the world’s approach to sustainable energy storage. The Company’s comprehensive offerings include proprietary gravity-based storage, battery storage, and green hydrogen energy storage technologies. Each storage solution is supported by the Company’s hardware technology-agnostic energy management system software and integration platform.
“Closing this transformational investment with OIC marks a pivotal moment in Energy Vault’s evolution to a fully-integrated Independent Power Producer with proven execution capabilities,” said Robert Piconi, Chairman of the Board and CEO of Energy Vault. “OIC’s deep expertise in infrastructure investing and their confidence in the strength and financial attractiveness of our Asset Vault portfolio provides tremendous validation of our ability to deliver sustainable, profitable growth.”
“Energy Vault has demonstrated exceptional execution capability in developing and operating energy storage projects, and we believe the Asset Vault platform positions the company to capture significant value in the rapidly expanding energy storage market,” said Chris Leary, Head of Infra Equity, OIC. “The combination of Energy Vault’s integrated capabilities, strong project pipeline, and experienced management team creates a compelling investment opportunity in critical energy infrastructure as the demand for power continues to grow at unprecedented rates.”