Energy Vault Holdings, a provider of sustainable, grid-scale energy storage solutions, has announced the closing of $28 million in project financing for its Calistoga Resiliency Center (CRC).
The financing includes the completed sale of an Investment Tax Credit (ITC) associated with the CRC.
The CRC, a hybrid microgrid energy storage facility, is developed by Energy Vault to serve a tolling contract with Pacific Gas & Electric Company (PG&E). It includes advanced hydrogen fuel cells with lithium-ion batteries designed to address power resiliency considering the challenges of wildfire risk in California.
As climate change is increasing the frequency and severity of fire-prone conditions, utilities are expected to implement Public Safety Power Shutoff (PSPS) events to prevent electrical equipment from sparking fires during extreme weather events. The CRC provides a fully sustainable solution to address the challenge by enabling the isolated 293 MWh Calistoga community microgrid system to maintain power during the necessary safety shutoffs. The system delivers ~48 hours of continuous energy supply with a peak power output of 8.5 MW during PSPS events.
The CRC in island mode utilizes green hydrogen in fuel cells for electricity generation, providing essential power to the community. Energy Vault's B-VAULT DC battery technology works in concert with the fuel cells to ensure instant response and maintain grid stability throughout operation.
The CRC has achieved mechanical completion and full commercial operations are expected in Q2 2025.
The zero-emission system supports California's Renewable Portfolio Standard (RPS) while meeting PG&E's multi day long duration energy storage requirements. The entire microgrid is orchestrated by Energy Vault's technology-agnostic VaultOS Energy Management System, enabling black-start, grid forming and seamless performance orchestration across all subsystems, while communicating with PG&E’s Distribution Control Center.
The CRC is a model for Energy Vault’s future utility-scale hybrid microgrid storage system deployments as the only existing zero-emission solution to address PSPS events. It is scalable and ready to be deployed across California and other regions prone to wildfires.
"The successful financing of the Calistoga Resiliency Center represents our team’s focus and execution in beginning 2025 by replenishing cash to our balance sheet from the prior year capex spent building the system," said Robert Piconi, Chairman and Chief Executive Officer of Energy Vault. "This is the first of two energy storage assets expected online this quarter as we execute our 'Own & Operate' asset management strategy, and we are looking forward to beginning generating predictable, recurring and high margin tolling revenue streams for the years to come.”
Energy Vault has executed binding agreements to monetize additional ITC tax credits and secure project financing for its Cross Trails and Customer R&D Center microgrid project, both co-located on adjacent land parcels in Snyder, TX, which are expected to yield more than $25 million.
