Energy Vault Holdings, Inc. has signed an exclusivity agreement for a $300 mn preferred equity investment (approximately €275 mn) to finance the launch of Asset Vault. This fully consolidated subsidiary will be responsible for developing, constructing, owning, and operating energy storage assets, either standalone or paired with generation units, in strategically selected markets. The capital is provided by a multi-billion dollar infrastructure fund, enabling the deployment of over $1.0 bn (approximately €920 mn) in capital expenditure for projects currently under development in the United States, Australia, and Europe.
An integrated model for accelerating growth
The agreement is designed to strengthen Energy Vault’s Independent Power Producer (IPP) strategy, prioritising a 1.5 GW portfolio of storage projects. Leveraging its operational expertise, the company plans to reduce installed megawatt-hour costs and operating expenses, while utilising its energy management software system to optimise project profitability. The investment also supports the establishment of a structure with long-term contracts, backed by secured offtake agreements or attractive merchant markets.
The operation involves a non-dilutive participation for common shareholders, with milestones for participation in the capital of the listed parent company. The funding will be allocated to design, acquisition, and both majority and minority equity investments in projects, thus enabling their rapid implementation. Energy Vault will retain operational and voting control over Asset Vault, integrating its engineering, construction, and asset management capabilities across the value chain.
An international storage platform supported by recurring revenues
The project portfolio already includes operational assets Cross Trails BESS (57 MW/114 MWh) and Calistoga Resiliency Center (8.5 MW/293 MWh), both in the United States, financed by $100 mn (approximately €92 mn) and supported by long-term offtake agreements and project financing. In Australia, Stoney Creek BESS (125 MW/1.0 GWh) is backed by a 14-year energy service contract with AEMO Services, ensuring stable revenues over the contract duration. Additional projects representing nearly 3 GW are under development in North America, Europe, and Australia, supported by tax incentives and secured contracts.
Asset Vault is expected to generate recurring EBITDA of over $100 mn in the next three to four years, in addition to Energy Vault’s core energy storage business. Expected revenues are based on the direct execution of design, construction, and operation contracts for projects by the parent company, further strengthening liquidity and its position in the international storage market.
