Long Life Battery Storage On Investors’ Money
Energy Vault Holdings (NYSE: NRGV), best known for its innovative utility-scale energy storage solutions, has secured one of the largest single injections of capital into the battery storage sector. Backed by a USD 300m (AUD 450m) preferred equity investment from a multi-billion-dollar infrastructure fund (1), the company is launching a new subsidiary – Asset Vault – dedicated to developing, building, owning, and operating large-scale energy storage projects. The move comes alongside the formal acquisition of the 125 MW/1,000 MWh Stoney Creek Battery Energy Storage System (BESS) in New South Wales – the company’s biggest battery project to date. (2)
The Investment – Scale and Strategy
The USD 300m capital raise is structured as preferred equity, with the deal expected to close within the next 30–60 days subject to regulatory approval. Importantly, the structure is non-dilutive to common shareholders. According to CEO Robert Piconi, the creation of Asset Vault “unlocks the full potential” of the company’s ‘Own & Operate’ strategy, providing according to it, immediate investment flexibility and enabling over USD 1bn in CapEx across a 1.5 GW development pipeline in the US, Europe, and Australia.
Asset Vault will act as both the owner-operator and EPC (engineering, procurement, construction) contractor for its projects, capturing more of the value chain and aiming for high gross margins. Within three to four years, the platform according to it is expected to deliver over USD 100m in recurring annual EBITDA. (3)
Stoney Creek – A Flagship Asset in Australia
While the capital raise is global in scope, the immediate headline is the completion of Energy Vault’s acquisition of the Stoney Creek BESS. Located near Narrabri, NSW, the eight-hour, 125 MW/1,000 MWh facility is designed to deliver dispatchable energy at scale, supporting peak demand and enhancing grid stability.
According to RenewEnergy, Stoney Creek was awarded a 14-year Long-Term Energy Service Agreement (LTESA) under the NSW Government’s fifth long-duration storage tender earlier this year. This provides a predictable, contracted revenue stream – a major de-risking element for investors. Once operational, it is expected to generate around USD 20m in annual earnings, contributing to, according to the company, an estimated USD 30m in recurring EBITDA over its 15-year+ lifespan.
The acquisition followed final approval from Australia’s Foreign Investment Review Board (FIRB), underscoring the government’s comfort with foreign capital in critical energy infrastructure. It also marks Energy Vault’s first non-US project under its global ‘Own & Operate’ strategy and cements its long-term commitment to Australia’s energy transition.
Why This Matters
For the energy transition, large-scale, long-duration storage is a missing piece of the puzzle. As renewable penetration grows, grid operators face increasing volatility from variable generation. Batteries like Stoney Creek offer the flexibility to store excess solar and wind energy and dispatch it when needed, smoothing out supply and demand imbalances.
From an investor’s perspective, projects backed by long-term offtake agreements such as the LTESA provide a compelling risk-adjusted return profile. They combine stable contracted revenues with the potential upside of merchant market participation.
Furthermore, the ‘Own & Operate’ model – as opposed to developing and selling projects – enables ongoing cash flow generation, rather than one-off development margins. By integrating EPC services, Energy Vault also captures additional project economics, effectively wearing both the builder and landlord hats.
A Growing Australian Footprint
Energy Vault’s Australian portfolio now totals 2.8 GWh of battery projects – according to RenewEnergy this is the majority of its global capacity pipeline. Alongside Stoney Creek, the company is developing the 250 MW/1,000 MWh Meadow Creek BESS in Victoria (paired with a 330 MW solar farm) and a 100 MW/800 MWh BESS. This positions the company as a serious player in Australia’s grid-scale storage market, which is seeing rapid growth driven by state decarbonisation targets and federal policy support.
Robert Piconi, the Chairman and Chief Executive Officer of Energy Vault Holdings, has emphasised that the Australian market offers attractive growth conditions – favourable regulation, strong renewable penetration, and urgent need for firming capacity – all of which align with Energy Vault’s strategic focus.
The Missed Opportunity
While Energy Vault and its backers stand to benefit from a locked-in 14-year revenue stream, some in the market will view this as a missed opportunity. The LTESA process was highly competitive, and only a select few projects were awarded contracts. For investors not already in on projects like Stoney Creek, the window for securing similar long-duration, contracted assets in NSW has effectively closed – at least until the next tender round.
This highlights a broader theme in the clean energy transition: the most bankable projects are often secured years before they deliver first power. Those who wait for “proof” of commercial viability often find themselves priced out or left with assets that carry higher risk and weaker returns. In short, hesitation in this market can mean missing out entirely.
Risks to Watch
While the fundamentals are strong, investors should be mindful of several risks:
Execution Risk – Large battery projects can face construction delays, permitting issues, or integration challenges.
Technology Performance – Even with proven lithium-ion systems, long-duration storage relies on complex integration and control systems that must deliver under real-world conditions.
Policy Risk – While current Australian policy is favourable, changes to government priorities or energy market rules could impact project economics.
Market Risk – Merchant revenue streams can be volatile, and while the LTESA mitigates much of this for Stoney Creek, future projects without similar contracts could be more exposed.
These factors do not diminish the strategic value of the Stoney Creek acquisition but are important in assessing portfolio-level risk exposure.
Financial Picture – Growth Amid Losses
Despite the strategic momentum, Energy Vault remains loss-making. For the June quarter, according to its last filing, it reported a net loss of USD 18.2m, compared to USD 13.4m a year earlier. Revenue growth is expected to accelerate as more projects reach operation, with the company forecasting an annual revenue uplift to USD 200-250m, driven by US battery deliveries and Australian project timelines.
For investors, the near-term story is one of capital deployment and project execution. The market will be watching closely for delivery on construction milestones and operational performance – particularly at Stoney Creek, given its scale and strategic importance.
The Bottom Line
Energy Vault’s USD 300m raise and the Stoney Creek acquisition mark a major inflection point for both the company and Australia’s storage sector. For investors already in, it’s a long-term cash-flow story backed by strong policy support. For those who hesitated, it’s a reminder that the best clean energy assets are often secured early – and once they’re gone, they’re gone.
References
Business Wire, Energy Vault Secures Final FIRB Approval and Completes Acquisition of 125 MW/1,000 MWh Stoney Creek BESS in Australia, August 2025. https://www.businesswire.com/news/home/20250807895968/en/Energy-Vault-Secures-Final-FIRB-Approval-and-Completes-Acquisition-of-125-MW1000-MWh-Stoney-Creek-BESS-in-Australia
Shumkov I, Renewables Now, Energy Vault attracts USD-300m investment to launch new unit, 7 August 2025. https://renewablesnow.com/news/energy-vault-attracts-usd-300m-investment-to-launch-new-unit-1279857/
Biss M, Renew Economy, Eight-hour battery gets FIRB approval as loss-making developer seeks key funding for construction, 11 August 2025. https://reneweconomy.com.au/eight-hour-battery-gets-firb-approval-as-loss-making-developer-seeks-key-funding-for-construction/
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