WESTLAKE VILLAGE, Calif. & CUPERTINO, Calif. - Energy Vault Holdings Inc. (NYSE: NYSE:NRGV), a company providing grid-scale energy storage solutions, announced the upcoming deployment of a new 57 MW/114 MWh Battery Energy Storage System (BESS) in Scurry County, Texas. The project, named Cross Trails BESS, is slated to begin construction in the first quarter of 2025 and is expected to be operational by the summer of the same year.
The BESS will be built, owned, and operated by Energy Vault and is designed to support renewable energy production and enhance grid resiliency within the Electric Reliability Council of Texas (ERCOT) region. Alongside the deployment, Energy Vault has signed a 10-year offtake agreement with Gridmatic, a power marketer utilizing AI technology. This agreement is set to commence in the second quarter of 2025.
This initiative is part of Energy Vault's broader strategy to expand its global energy storage infrastructure, which includes projects in the U.S., Europe, and Australia. The company aims to leverage its expertise in energy storage systems and microgrids to maximize capital efficiency and profitability. Energy Vault's recent collaboration with Jefferies for project financing underpins this growth strategy.
The Cross Trails BESS will utilize Energy Vault's proprietary X-Vault integration platform and VaultOS Energy Management System to manage operations. The system architecture allows flexibility with battery and inverter suppliers and can accommodate both AC-coupled and DC-coupled configurations.
The partnership with Gridmatic marks the first physically settled revenue floor contract for a BESS in the ERCOT market. Gridmatic will contribute its AI-based forecasts, which have shown top performance in the ERCOT Day Ahead energy trading market, and will also provide QSE services.
Energy Vault's CEO, Robert Piconi, emphasized the company's rapid execution of its strategy to build, own, and operate energy storage assets. Matt Wytock, CEO of Gridmatic, highlighted the BESS's role in increasing grid reliability and affordability for Texas residents.
Energy Vault's current portfolio includes more than 2 GWh of projects deployed or under construction, while Gridmatic operates over 300 MW of battery storage projects in the ERCOT and CAISO markets.
This announcement is based on a press release statement and contains forward-looking statements regarding the company's future operations and financial performance.
In other recent news, Energy Vault Holdings Inc. has faced some challenges and developments. The company regained compliance with the New York Stock Exchange's listing standards after its average share price exceeded the required $1 threshold over a 30-day trading period. However, it was also notified of non-compliance due to its stock trading below $1 for a consecutive 30-day period, with until September 27, 2024, to address this issue.
Energy Vault also announced a partnership with Enervest Group to establish a 1,000 MWh battery energy storage system at the Stoney Creek site in Australia. This project is part of the company's regional expansion strategy. In its Q2 2024 earnings call, Energy Vault reported new deals in Australia and the U.S., a developed pipeline valued at $2.8 billion, and a backlog of $264 million. Despite a negative adjusted EBITDA of $15.8 million, the company maintained its full-year revenue guidance of $50 million to $100 million and reported a Q2 revenue of $3.8 million.
These recent developments reflect Energy Vault's strategic focus on delivering predictable and recurring revenue. The company is transitioning towards owning and operating projects for long-term returns, with revenue projections for the next two years ranging between $500 million and $700 million.
InvestingPro Insights
Energy Vault Holdings Inc. (NYSE: NRGV) is making significant strides in the energy storage sector, as evidenced by its latest project announcement in Texas. This expansion aligns with the company's growth strategy, which is reflected in its financial metrics and market performance.
According to InvestingPro data, Energy Vault has demonstrated impressive revenue growth, with a 97.21% increase over the last twelve months as of Q2 2024. This robust growth underscores the company's expanding market presence and the increasing demand for its energy storage solutions.
However, investors should note that Energy Vault is currently not profitable, with a negative operating income margin of -31.49% over the same period. This is not uncommon for rapidly growing companies in the renewable energy sector, as they often prioritize market expansion and technological development over short-term profitability.
InvestingPro Tips highlight that Energy Vault holds more cash than debt on its balance sheet, which provides financial flexibility to fund projects like the Cross Trails BESS. This strong liquidity position is crucial for supporting the company's ambitious growth plans and weathering potential market volatilities.
Another relevant InvestingPro Tip indicates that the stock has taken a big hit over the last week, with a -7.84% return. However, this short-term dip contrasts with the stock's strong performance over longer periods, showing a 102.17% return over the last month and a 104.5% return over the last three months. This volatility aligns with another tip suggesting that the stock generally trades with high price volatility, which is characteristic of the dynamic renewable energy sector.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Energy Vault Holdings, providing a deeper understanding of the company's financial health and market position.
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