Westlake Village-based energy storage development company Energy Vault Holdings Inc. has completed a hybrid energy storage project in Calistoga and secured a $300 million investment to anchor a newly created asset fund for build-to-own projects.
The $28 million, 293-megawatt-hour project in Calistoga was developed in partnership with Pacific Gas & Electric, the utility subsidiary of Oakland-based PG&E Corp. It went into operation late last month, serving about 1,600 Pacific Gas & Electric customers in and around Calistoga at the north end of Napa Valley.
The project is unique in that it contains two forms of energy storage: traditional lithium-ion batteries and hydrogen fuel cells. Energy Vault’s technology-agnostic management platform enables both modes of energy storage to operate in tandem.
The aim is to provide multiple forms of backup power that can be used as a microgrid to maintain power during high-wind events or other episodes that prompt power shutoffs.
“This project is a major milestone in our mission to deliver sustainable, resilient energy solutions to communities most vulnerable to climate-driven grid disruptions,” said Craig Horne, senior vice president of advanced energy solutions at Energy Vault Holdings.
Asset fund
Earlier this month, Energy Vault Holdings announced it had secured a $300 million investment from New York-based Orion Infrastructure Capital (OIC) to set up a unit called Asset Vault, essentially a fund that can be drawn upon for the development of build-to-own energy storage projects.
In the past, Energy Vault Holdings had pursued energy storage projects on contract with power producers, where it would build the energy storage facilities and then turn them over to its clients to operate. The build-to-own model has the advantage of creating ongoing revenue streams.
Late last week, Energy Vault announced its first acquisition using this new fund: a 150-megawatt battery energy storage plant in Madison County, Texas. Financial terms of the deal were not disclosed.
“Closing this transformational investment with OIC marks a pivotal moment in Energy Vault’s evolution to a fully-integrated independent power producer with proven execution capabilities,” Robert Piconi, Energy Vault’s chief executive and board chair, said in the announcement.
