WESTLAKE VILLAGE, Calif. & MELBOURNE, Australia - Energy Vault Holdings Inc. (NYSE: NYSE:NRGV) has reached an agreement with Enervest Group to establish a 1,000 MWh battery energy storage system (BESS) at the Stoney Creek site in New South Wales, Australia. The BESS is intended to bolster grid reliability and support the state's renewable energy expansion. The project is currently undergoing final development and grid application approvals, with the goal of reaching a full final investment decision.
The Stoney Creek BESS will incorporate Energy Vault's proprietary technology, including the X-Vault integration platform, B-VAULT battery product, and Vault-OS Energy Management System. This system is designed to improve the efficiency and stability of the power grid while reducing carbon intensity. Energy Vault will serve as the comprehensive partner for the project, overseeing engineering, procurement, construction, commissioning, and long-term maintenance.
Ross Warby, CEO of Enervest, highlighted the partnership with Energy Vault as a cornerstone for high-quality project development and expressed eagerness to foster further collaborations with stakeholders, including local and indigenous communities.
Robert Piconi, Chairman and CEO of Energy Vault, noted that the Stoney Creek project aligns with the company's growth plans for 2025 and beyond, emphasizing their commitment to large scale and financially viable projects that enhance grid resiliency.
This development is part of Energy Vault's expansion in Australia, following other projects in New South Wales totaling over 400 MWh, which are set for delivery in 2025. Energy Vault's portfolio in the region includes more than 2 GWh of projects either deployed or in development.
Energy Vault specializes in utility-scale energy storage solutions, offering a suite of technologies supported by hardware-agnostic energy management system software. Their G-Vault technology aims to promote a circular economy and accelerate the clean energy transition.
Enervest, an Australian energy developer with over 15 years of experience, focuses on the origination, development, design, construction, and operation of energy generation and storage assets, aiming to lead Australia's energy transition and create positive outcomes for communities and stakeholders.
The information in this article is based on a press release statement from Energy Vault Holdings Inc.
In other recent news, Energy Vault Holdings, Inc. has been notified of non-compliance with the New York Stock Exchange's minimum stock price requirement, following a 30-day period of trading below $1.00. The company has until September 27, 2024, to address this issue and a six-month period to regain compliance. Meanwhile, Energy Vault's common stock will continue to be listed and traded on the NYSE, subject to compliance with other listing requirements.
In its second quarter 2024 earnings call, Energy Vault reported new deals in Australia and the US, a 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, with a Q2 revenue of $3.8 million.
Furthermore, Energy Vault confirmed new energy storage projects in Australia, the US, Italy, and Brazil. 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. These recent developments are part of Energy Vault's strategic focus on delivering predictable and recurring revenue.
InvestingPro Insights
Energy Vault Holdings Inc. (NYSE: NRGV) is making significant strides in the energy storage sector, as evidenced by its recent agreement with Enervest Group. This expansion aligns with the company's growth trajectory, 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 in 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 in a growth phase and faces some financial challenges. An InvestingPro Tip indicates that the company is "quickly burning through cash," which is not uncommon for rapidly expanding businesses in the renewable energy sector. This cash burn rate should be considered in the context of the company's ambitious projects, such as the 1,000 MWh BESS at Stoney Creek.
Another relevant InvestingPro Tip highlights that Energy Vault "holds more cash than debt on its balance sheet." This financial position could provide the company with the flexibility needed to fund its expansion plans and weather potential market volatility.
It's worth noting that Energy Vault has shown strong recent market performance, with a significant 49.5% return over the last week and a 42.45% return over the last month. These figures suggest growing investor confidence in the company's prospects and its strategic moves in the energy storage market.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Energy Vault Holdings Inc., providing a deeper understanding of the company's financial health and market position.
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