Energy Vault, a global developer of grid-scale energy storage projects, has closed project financing and completed a 10-year offtake agreement for a battery energy storage system (BESS) installation in Texas. The $18-million Cross Trails project, located in Scurry County, entered full commercial operation in June and has secured a decade-long offtake deal with power marketer Gridmatic. The installation is also expected to receive more than $12 million in federal investment tax credit-related funds this summer.
The project serves the Electric Reliability Council of Texas (ERCOT) region with a 57-MW/114-MWh BESS, providing energy and ancillary services to support renewable energy production and improve grid resiliency. Energy Vault highlighted that the installation was completed ahead of schedule, crediting effective project management and collaboration among engineering, procurement, and construction teams.
The offtake agreement with Gridmatic is notable as the “first physically settled revenue floor contract to be signed for a BESS in ERCOT,” according to Energy Vault. The BESS leverages Energy Vault’s fully integrated solution stack, including its second-generation B-VAULT AC product and VaultOS Energy Management System. This deployment enables Energy Vault to deliver the system quickly and at low cost while providing higher levels of system availability in the ERCOT region.
Energy Vault reported that the financing for Cross Trails “delivers an attractive levered internal rate of return (IRR) of ~15%,” building on the company’s successful execution of its ‘Own & Operate’ asset management strategy. This follows the recent $28-million project financing for the Calistoga Resiliency Center microgrid in California. The company also announced a quarterly increase in cash of more than 20% during its second-quarter earnings call on August 7, after a 60% increase in the previous quarter.
Robert Piconi, chairman and CEO of Energy Vault, stated, “The successful financing of our Cross Trails BESS project represents another significant milestone in executing our ‘Own & Operate’ strategy, delivering strong returns that will generate predictable, high margin and recurring revenue streams.” He emphasized the company’s ability to attract premium financing partners and build a diversified portfolio of energy storage assets globally.
Max Wytock, CEO of Gridmatic, commented, “Energy Vault’s proven expertise and ability to develop and deploy world-class reliable, and cost-effective energy storage solutions makes them a perfect partner for Gridmatic. This BESS will deliver increased grid reliability and affordability for Texas residents as load growth continues to accelerate. We look forward to a strong partnership with Energy Vault for years to come.”
This announcement marks the second close of project financing for Energy Vault projects, following the $28 million financing for the Calistoga Resiliency Center project in California and the acquisition of the 125-MW/1,000-MWh Stoney Creek BESS in Australia. Energy Vault stated it has a “robust pipeline of projects in development” within its ‘Own & Operate’ strategy, aiming to generate predictable, recurring, and high-margin tolling revenue streams to deliver sustainable, long-term value to shareholders.
The successful deployment and financing of the Cross Trails project underscore Energy Vault’s strategic vision and operational excellence in the energy storage sector. This development is likely to influence the broader energy market by demonstrating the viability and attractiveness of long-term offtake agreements and the potential for high returns in grid-scale energy storage projects. As the energy sector continues to evolve, such initiatives could accelerate the adoption of energy storage solutions, enhancing grid stability and supporting the integration of renewable energy sources.