Energy Vault Announces Successful Testing and Commissioning of First EVx 100 MWh Gravity Energy Storage System by China Tianying, Extension of Atlas Renewable Licensing Agreement to 15 Years

Rhea-AI Summary

Energy Vault announced the successful testing and commissioning of the Rudong EVx 100 MWh Gravity Energy Storage System by China Tianying, along with the extension of the licensing agreement with Atlas Renewable to 15 years. The system is the world's first commercial, grid-scale gravity energy storage system and marks a significant milestone in China's energy transition and decarbonization goals. The successful testing was followed by the mechanical completion in September 2023 and state grid interconnection in December 2023. More than 3.7GWh of projects are underway in China, with the licensing agreement extension reflecting the pivotal role of gravity storage technology in China's energy landscape.

Positive

• The successful testing and commissioning of the Rudong EVx marks a significant milestone for Energy Vault and its partners, emphasizing the importance of gravity energy storage technology in China's energy transition and decarbonization goals.

• Extension of the licensing agreement with Atlas Renewable to 15 years demonstrates the confidence in the EVx gravity energy storage system, with potential revenue royalty streams from future projects in China.

• The Rudong EVx project's selection as a "new energy storage pilot demonstration project" by China's National Energy Administration highlights its strategic importance and the support it receives from provincial-level energy authorities for successful implementation.

Negative

• Despite the positive milestones achieved, the success of the Rudong EVx project is contingent on meeting final provincial and state approvals for commercial operation, which could pose regulatory challenges.

Energy Industry Analyst

The announcement by Energy Vault about the successful testing of the first EVx 100 MWh Gravity Energy Storage System and the extension of the licensing agreement signals a notable advancement in energy storage technology. Gravity energy storage systems like EVx offer an innovative alternative to battery storage, potentially overcoming challenges related to battery life, raw material supply and environmental concerns. Given the scale of deployment and China's focus on decarbonization, this could indicate a significant shift towards adopting gravity storage solutions. If Energy Vault can continue demonstrating reliability and cost-effectiveness, this could result in increased demand for their technology, generating long-term revenue streams through royalties and possibly improving their market position. The extension of the licensing agreement doubles the initial term, which underscores the confidence in the technology's longevity and commercial viability. This development could attract investor interest in renewable energy storage solutions and may influence stock valuations positively, given the strategic role of storage in energy transition.

Renewable Energy Technology Specialist

With the successful commissioning of the Rudong EVx system, Energy Vault has positioned itself at the forefront of grid-scale gravity-based energy storage, a sector poised for substantial growth. The technology stores energy by lifting composite blocks using surplus electricity and releasing the energy by lowering them, effectively acting like a rechargeable battery. The potential scalability and lower environmental impact of such systems could resonate well with investors looking for eco-friendly energy innovations, especially in a market as large as China. Moreover, EVx being selected as a new energy storage pilot demonstration project suggests government support and could lead to further development and standardization advantages. This could pave the way for similar projects, fostering a more resilient grid infrastructure. For investors, the alignment with China's energy policies may add a layer of security to their investment, factoring in state-level support.

Financial Analyst

The financial implications of Energy Vault's announcements are two-fold. Firstly, the operational success of the EVx system could serve as a proof-of-concept for potential customers and investors, possibly leading to an uptick in project announcements and partnerships. The extension of the licensing agreement from 7.5 to 15 years with Atlas Renewable indicates a stable, long-term revenue source for Energy Vault based on royalties, supporting the financial sustainability of the firm. Furthermore, the cumulative capacity of announced projects in China exceeding 3.7 GWh could represent a significant forward earnings potential. However, investors should also be mindful of the capex requirements for scaling production, the competitive landscape and how quickly Energy Vault can commercialize and monetize its GESS technology. Vigilance on the rate of adoption and the technology's economic feasibility compared to other energy storage solutions will be important in assessing the company's future financial health.

Rudong 25 MW/100 MWh EVx system, the world’s first commercial, grid-scale gravity energy storage system, successfully tested and commissioned by China Tianying (CNTY) on May 4 at celebration attended by Chen Huiyu, Secretary of the County Party Committee

Successful testing followed mechanical completion in September 2023 and successful state grid interconnection in December 2023; more than 3.7GWh of announced projects in China underway

Licensing agreement with Atlas Renewable for Energy Vault’s EVx gravity energy storage system (GESS) technology extended from 7.5 to 15 years

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)-- Energy Vault Holdings, Inc. (NYSE: NRGV) ("Energy Vault"), a leader in sustainable, grid-scale energy storage solutions, today announced the successful testing and commissioning of the Rudong EVx™ gravity energy storage system (GESS) by China Tianying Co., Ltd (CNTY). Testing included the successful charging and discharging of units of the 25 MW/100 MWh GESS invested in and built by CNTY in partnership with Energy Vault and Atlas Renewable.

The first set of charging and discharging units of the Rudong 100MWh gravity energy storage project was successfully tested. (Photo: Business Wire)

In addition to the successful testing of the Rudong EVx, Energy Vault announced the extension of its EVx licensing agreement with Atlas Renewable from 7.5 to 15 years, reflecting the key role that gravity storage technology stands to play in China’s energy transition and achieving China’s decarbonization goals. In the last 12 months, CNTY has announced eight additional EVx GESS deployments across multiple provinces in China totaling more than 3.7 GWh, which will generate future project revenue royalty streams to Energy Vault as systems are built and commissioned.

“The successful testing and commissioning of the Rudong EVx, the world’s first grid-scale gravity energy storage system, is a significant milestone for Energy Vault, our local partners Atlas and CNTY, and importantly for China and their progress toward achieving their goals for net carbon neutrality,” said Robert Piconi, Chairman and Chief Executive Officer, Energy Vault. “This testing demonstrates that gravity energy storage technology promises to play a key role in supporting the energy transition and decarbonization goals of China, the world’s largest energy storage market. We are also pleased to announce that our EVx licensing and royalty agreement with Atlas Renewable and CNTY has been extended another 7.5 years through 2036, and we look forward to the continuation of this strong partnership as new systems get deployed in volume in the years to come.”

In January 2024, the Rudong EVx was selected 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.

Commissioning of the 25 MW/100 MWh EVx GESS began in the second half of 2023, followed by the completion in September 2023 of the final four kilometer 35kV Overhead Power Line to the existing Remote End Substation, the capping and completion of construction of the facility in October, and full grid interconnection in December. 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.

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.

FAQ

When was the Rudong EVx 100 MWh Gravity Energy Storage System successfully tested and commissioned?

The Rudong EVx 100 MWh Gravity Energy Storage System was successfully tested and commissioned on May 4.

What is the significance of the extension of the licensing agreement with Atlas Renewable to 15 years?

The extension of the licensing agreement with Atlas Renewable to 15 years reflects the pivotal role of gravity storage technology in China's energy transition and decarbonization goals.

How many GWh of projects are underway in China related to the EVx gravity energy storage system?

More than 3.7GWh of projects are underway in China related to the EVx gravity energy storage system.