Energy Vault Announces China State Grid Interconnection of First EVx 100 MWh Gravity Energy Storage System, Groundbreaking of Three Additional EVx Gravity Storage Systems and Other China Market Expansion Milestones
Energy Vault Holdings, Inc. achieves China state grid interconnection for Rudong EVx system, with construction underway on three additional grid-scale EVx gravity energy storage system deployments. The projects are recognized as 'new energy storage pilot demonstration projects' by China's National Energy Administration, highlighting the company's growing presence in the world's largest energy storage market.
The interconnection of Energy Vault's 25 MW/100 MWh EVx system to China's state utility grid marks a significant milestone in energy storage technology deployment. This development is particularly noteworthy given China's aggressive renewable energy targets and the mandate for renewable energy plants to integrate storage capacity. The EVx system's capacity to store and deliver renewable energy will be essential for balancing the grid, especially as China moves towards its goal of a 20% storage requirement for renewable plants. The designation of these projects as 'new energy storage pilot demonstration projects' by the NEA may catalyze further investment in the sector, potentially leading to increased demand for Energy Vault's technology.
From an investor's perspective, the progression of these projects through construction and commissioning phases could signal robust future revenue streams through project royalties. The company's strategic partnership with CNTY and Atlas Renewable and their success in the Chinese market, underscores Energy Vault's potential for growth and the scalability of its gravity energy storage solutions. The impact on Energy Vault's stock could be positive, reflecting the company's foothold in the world's largest energy storage market.
Energy Vault's gravity energy storage system (GESS) represents a novel approach to large-scale energy storage, an alternative to traditional methods such as pumped hydro or battery storage. The EVx system's successful commissioning can be seen as a proof of concept for this technology, which uses gravity and kinetic energy to store and release power. This could be transformative for the integration of intermittent renewable energy sources like wind and solar, as it provides a means to store excess energy and release it when demand is high or generation is low.
The long-term operational reliability and efficiency of these systems will be crucial for widespread adoption. Given the early stage of this technology, the performance data from these initial deployments will be critical in validating the technology's commercial viability and efficiency. If successful, this could lead to a paradigm shift in how renewable energy is stored and managed, with significant implications for energy policy and infrastructure investment decisions globally.
The financial implications of Energy Vault's expansion in China are multifaceted. The company's involvement in 3.7 GWh of energy storage projects represents a substantial investment in the Chinese market. The formal recognition of the projects by the NEA not only enhances the credibility of Energy Vault's technology but also potentially secures a more favorable regulatory environment, which can facilitate smoother project execution and mitigate risks associated with policy changes.
Investors will be keenly observing the upcoming financial results report for insights into the financial health of Energy Vault and the impact of its Chinese projects on its bottom line. The ability to generate consistent revenue through royalties provides a recurring income stream, which is attractive from an investment standpoint. However, the capital intensity of constructing these large-scale storage systems and the company's capacity to manage and finance multiple projects simultaneously will be critical factors in assessing Energy Vault's financial sustainability and growth trajectory.
02/29/2024 - 04:38 PM
Rudong 25 MW/100 MWh EVx system became fully interconnected to the local state utility grid in December 2023 as planned, enabling full commissioning, inverse power and operational activity powered by the State Grid
A second EVx system in Zhangye City, Gansu Province , started in Q2 2023 has completed foundation work and initial four floors of construction above ground
Both the Rudong and Zhangye EVx Gravity Storage Systems have been formally designated and recognized as “new energy storage pilot demonstration projects” by China’s National Energy Administration (NEA) in their formal announcements last month
Combined with Rudong EVx, 468 MWh of the total announced 3.7 GWh of Energy Vault’s EVx gravity energy storage systems (GESS) are now under construction in China , the world’s largest and fastest growing energy storage market
Construction of 17 MW/68 MWh EVx located in Zhangye City, Gansu Province , 50 MW/200 MWh EVx located in Ziuquan City, Jinta County, Gansu Province , and 25MW/100MWh EVx located in Huailai Cunrui Town, Zhangjiakou County, Hebei Province began in 2023
Nine EVx GESS deployments now underway in China totaling 3.7 GWh, each of which will generate future project revenue royalty streams to Energy Vault as systems are built and commissioned
WESTLAKE VILLAGE, Calif. --(BUSINESS WIRE)--
Energy Vault Holdings, Inc. (NYSE: NRGV) ("Energy Vault" or the “Company”), a leader in sustainable, grid-scale energy storage solutions, today confirmed that China state grid interconnection and inverse power operation was achieved for the Rudong EVx system in December 2023 while construction has commenced on three additional grid-scale EVx™ gravity energy storage system (GESS) deployments in China . Energy Vault's partners, China Tianying (CNTY) and Atlas Renewable, now have nine EVx GESS deployments underway in China totaling 3.7 GWh, each of which will generate future project revenue royalties for Energy Vault.
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The Rudong 25 MW/100 MWh EVx system became fully interconnected to the local state utility grid in December 2023, enabling full commissioning, inverse power and operational activity powered by the Chinese State Grid (Photo: Business Wire)
In 2023, Energy Vault’s partners, CNTY and Atlas Renewable, broke ground on multiple new EVx projects with local public announcements, all of which are being made available on Energy Vault’s website under the Investor tab: a 17 MW/68 MWh EVx GESS deployment located in Zhangye City, Gansu Province , being built adjacent to a renewable energy generation site and a national grid interconnection site; a 50 MW/200 MWh EVx located in Ziuquan City, Jinta County, Gansu Province ; and a 25 MW/100 MWh EVx located in Huailai Cunrui Town, Zhangjiakou County, Hebei Province . The latter two projects were previously announced alongside four other deployments in China , and are being built adjacent to renewable energy generation and national grid interconnection sites. Upon completion, the systems will augment and support ongoing balancing of China’s national energy grid through the storage and delivery of renewable energy.
As a testament to the growing adoption of Energy Vault’s gravity energy storage technology within the China state energy policy framework, the Rudong and Zhangye City EVx systems were recently selected and announced formally last month in January 2024 as part of a list of projects with the classification of “new energy storage pilot demonstration projects” by China’s National Energy Administration (NEA). Projects selected as demonstration pilots receive the benefit of increased management oversight by provincial-level energy authorities, allowing for coordination to support progress related to construction, data reporting, compliance, and safety measures, among other issues of focus. This recognition highlights the substantial surge in demand for renewable energy sources and emphasizes the indispensable role of gravity energy storage in the crucial mission of global decarbonization, in particular in China . China’s energy policies now require renewable energy plants to integrate storage of 20% of their nameplate generation capacity, with at least a 2–4-hour duration. These energy storage durations are expected to increase over time as more renewable energy generation becomes a larger percentage of grid power.
“I am pleased to see the increased market adoption of Energy Vault’s gravity energy storage technology in China , the world’s largest energy storage market supported by the new project groundbreaking announcements and other milestones within China’s national energy policy framework for energy storage,” said Robert Piconi, Chairman and Chief Executive Officer of Energy Vault. “We look forward to sharing additional performance and project development in the coming weeks and months as commissioning and new project activities continue at a rapid pace.”
Andrea Pedretti, Energy Vault’s Chief Technology Officer, commented: “Having just spent the last few days in Rudong at the EVx site, I continue to be impressed with the local technical, R&D and construction expertise brought by China Tianying and their partners. Coupled with their internal and local manufacturing capabilities for all of the mechanical systems, we have a great partner to rapidly deploy our EVx and broader gravity energy storage technology in China.”
Following the start of commissioning of the 25 MW/100 MWh EVx GESS in Rudong in the second half of 2023, and the start of the grid interconnection process in September 2023 as previously announced, the system achieved full grid interconnection as noted above in December 2023 following the prior completion in September 2023 of the final four kilometer 35kV Overhead Power Line to the existing Remote End Substation, as planned with local state grid authorities late last year. The formal state grid interconnection to power the system achieved in December last year also follows the successful capping of the structure on October 15, 2023, marking the completion of construction of the facility.
Upon final provincial and state approvals for the start of commercial operation to the state grid, the Rudong EVx will be the world’s first commercial, utility scale non-pumped hydro gravity energy storage system. Further updates with regard to the Rudong EVx deployment are expected to be delivered as part of Energy Vault’s upcoming fourth quarter and full year 2023 financial results report, scheduled for Tuesday, March 12, 2024 .
About Energy Vault
Energy Vault® develops and deploys utility-scale energy storage solutions designed to transform the world's approach to sustainable energy storage. The Company's comprehensive offerings include proprietary gravity-based storage, battery storage, and green hydrogen energy storage technologies. Each storage solution is supported by the Company’s hardware technology-agnostic energy management system software and integration platform. Unique to the industry, Energy Vault’s innovative technology portfolio delivers customized short-and-long-duration energy storage solutions to help utilities, independent power producers, and large industrial energy users significantly reduce levelized energy costs while maintaining power reliability. Utilizing eco-friendly materials with the ability to integrate waste materials for beneficial reuse, Energy Vault’s EVx™ gravity-based energy storage technology is facilitating the shift to a circular economy while accelerating the global clean energy transition for its customers. Please visit www.energyvault.com for more information.
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Source: Energy Vault Holdings, Inc.
When was the Rudong 25 MW/100 MWh EVx system fully interconnected to the local state utility grid?
The Rudong EVx system was fully interconnected in December 2023.
How many EVx GESS deployments are currently underway in China?
There are nine EVx GESS deployments totaling 3.7 GWh underway in China.
What recognition did the Rudong and Zhangye City EVx systems receive from China's National Energy Administration?
The systems were designated as 'new energy storage pilot demonstration projects' by NEA.
What percentage of nameplate generation capacity must renewable energy plants integrate storage for according to China's energy policies?
Renewable energy plants in China must integrate storage of 20% of their nameplate generation capacity.
When is Energy Vault's upcoming fourth quarter and full year 2023 financial results report scheduled?
The report is scheduled for Tuesday, March 12, 2024.
