Energy Vault, a provider of grid-scale energy storage solutions, has announced an agreement to receive a $300 million preferred equity investment. This funding is intended to support the launch of Asset Vault, a new subsidiary dedicated to building, owning, and operating energy storage assets in global markets.
The investment comes from a leading multi-billion-dollar infrastructure fund and is expected to enable more than $1 billion in capital expenditures. This will accelerate the deployment of 1.5 gigawatts (GW) of energy storage projects across the United States, Europe, and Australia.
Asset Vault will consolidate Energy Vault’s existing storage portfolio, which includes a 3 GW pipeline of battery energy storage systems (BESS) projects. The company plans to leverage its internal engineering, procurement, construction, and operational capabilities. Under the new structure, Asset Vault will contract Energy Vault for project design, construction, commissioning, and service agreements, while Energy Vault maintains voting and operational control. It is projected that Asset Vault will generate over $100 million in recurring annual EBITDA within the next three to four years, supplementing Energy Vault’s current Energy Storage Solutions business.
The new capital will be allocated to project development expenses, project acquisition, and equity investments to support favourable project financing for asset construction, commissioning, and operation.
Robert Piconi, Chairman of the Board and CEO of Energy Vault, stated: “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. By combining long-term contracted revenues with strategic capital and integrated, self-performed project execution, we are well positioned to scale resilience, 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.”
In conjunction with launching the new platform, Energy Vault has completed its acquisition of the Stoney Creek Battery Energy Storage System (BESS) in New South Wales, Australia, following approval from the Foreign Investment Review Board (FIRB). The 125 MW/1,000 MWh project, initially announced in March, is now part of the Asset Vault portfolio as a fully controlled and operated asset, reinforcing Energy Vault’s expansion strategy in the Australian market.
