Energy Vault, a global developer of grid-scale energy storage projects, has recently announced the successful closure of project financing and completion of a 10-year offtake agreement for a battery energy storage system (BESS) installation in Texas. The company, with headquarters in California and offices in Virginia, Switzerland, and Australia, secured $18 million in project financing for the Cross Trails project, marking a significant step in its expansion strategy following equity investments in new “Own and Operate” assets.
The Cross Trails BESS, situated in Scurry County, Texas, entered full commercial operation in June and has signed a decade-long offtake deal with power marketer Gridmatic. Additionally, the installation is expected to receive over $12 million in federal investment tax credit-related funds this summer as part of a previously executed sale agreement. Energy Vault reported that the financing for Cross Trails is projected to deliver an attractive levered IRR of approximately 15%, building on the success of its ‘Own & Operate’ asset management strategy.
The 57-MW/114-MWh Cross Trails BESS, serving the Electric Reliability Council of Texas (ERCOT) region, was completed ahead of schedule, meeting all construction milestones through effective project management and collaboration among engineering, procurement, and construction teams. The project aims to provide energy and ancillary services to support renewable energy production and enhance grid resiliency in ERCOT’s territory.
Gridmatic CEO Max Wytock expressed confidence in Energy Vault’s expertise and cost-effective energy storage solutions, highlighting the partnership’s potential to enhance grid reliability and affordability for Texas residents amid accelerating load growth. Energy Vault’s Chairman and CEO, Robert Piconi, emphasized the company’s commitment to generating long-term shareholder value through strategic energy storage asset ownership and operation in key growth markets.
The successful financing of the Cross Trails BESS project follows Energy Vault’s recent achievements, including the closure of $28 million in financing for the Calistoga Resiliency Center project in California and the acquisition of the 125-MW/1,000-MWh Stoney Creek BESS in Australia. With a robust pipeline of projects in development under the ‘Own & Operate’ strategy, Energy Vault aims to establish predictable, recurring, and high-margin revenue streams to deliver sustainable long-term value to shareholders.
The company’s innovative approach and track record in developing reliable energy storage solutions position it as a key player in the evolving energy landscape. By leveraging its integrated solution stack of hardware, software, and service offerings, Energy Vault continues to drive advancements in grid-scale energy storage, contributing to a more resilient and sustainable energy future.
