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.
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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.
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By GlobalDataThis 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.”
