Eagle Point, Energy Vault Finalize Deal for World’s Largest Long-Duration Storage Site
In a significant advancement for sustainable energy infrastructure, Eagle Point Credit Management LLC (“Eagle Point”), an investment manager specializing in private credit strategies, has provided $28 million in project financing to Energy Vault Holdings Inc. (“Energy Vault”). This funding supports the development of the Calistoga Resiliency Center (CRC), a pioneering energy storage facility in Calistoga, California. The CRC is designed to enhance the region’s energy resilience, particularly during Public Safety Power Shutoff (PSPS) events initiated to mitigate wildfire risks.
Innovative Hybrid Energy Storage Solution
The Calistoga Resiliency Center represents a groundbreaking approach to energy storage, integrating green hydrogen fuel cells with lithium-ion batteries. This hybrid system aims to provide a fully carbon-free microgrid capable of storing and dispatching clean energy on demand. With a storage capacity of 293 megawatt-hours (MWh), the facility is engineered to deliver 48 hours of continuous energy supply and achieve a peak power output of 8.5 megawatts (MW) during PSPS events. Energy Vault’s proprietary B-VAULT™ DC battery technology will operate in tandem with the fuel cells to ensure instantaneous response and grid-forming capabilities, maintaining a stable power supply throughout any disruptions.
Strategic Partnership and Financial Structure
The collaboration between Eagle Point and Energy Vault underscores a shared commitment to advancing sustainable energy solutions. Jennifer Powers, Principal and Head of Infrastructure Credit at Eagle Point, emphasized the importance of such initiatives:
“As we continue to see the rise of extreme weather events around the world, it is imperative we ensure communities have access to essential services during these times. An innovative leader in the energy transition, Energy Vault has developed the Calistoga Resiliency Center and an industry-leading proprietary system to provide essential power services to communities when local utilities need to be offline, significantly reducing environmental risks, such as wildfires.”
The financing arrangement includes the sale of Investment Tax Credits (ITC) associated with the CRC, reflecting the project’s alignment with federal incentives for renewable energy investments. This financial structure not only facilitates the project’s development but also underscores the economic viability of integrating advanced energy storage solutions into the grid.
Operational Readiness and Community Impact
The CRC has achieved mechanical completion and is currently undergoing commissioning, with full commercial operation anticipated in the second quarter of 2025. Once operational, the facility will provide a reliable and sustainable power source for the city of Calistoga, particularly during PSPS events when traditional power sources are unavailable. This capability is crucial for reducing the risk of power outages and enhancing the community’s resilience to wildfire-related disruptions.
Robert Piconi, Chairman and CEO of Energy Vault, highlighted the significance of the partnership with Eagle Point:
“Our partnership with Eagle Point marks an important milestone for Energy Vault, as it validates the positive financial returns of the project as well as our ability to achieve attractive terms from a leading institutional credit provider with a robust understanding of the drivers in the energy transition and our value proposition in battery storage solutions.”
Technological Innovation and Environmental Benefits
The CRC’s design incorporates advanced technologies to create a cost-effective, community-scale microgrid. By utilizing green hydrogen fuel cells alongside lithium-ion batteries, the facility can generate electricity without producing greenhouse gas emissions, aligning with California’s ambitious climate goals. The integration of Energy Vault’s B-VAULT™ battery system ensures rapid response times and grid-forming capabilities, which are essential for maintaining power stability during emergencies.
Furthermore, the project’s emphasis on sustainability extends to its operational practices. The use of green hydrogen, produced through electrolysis powered by renewable energy sources, exemplifies a commitment to environmentally friendly energy solutions. This approach not only reduces reliance on fossil fuels but also contributes to the broader effort of decarbonizing the energy sector.
Regulatory Support and Future Prospects
The development of the CRC aligns with regulatory initiatives aimed at enhancing grid resilience and promoting clean energy solutions. The California Public Utilities Commission (CPUC) has been instrumental in encouraging the deployment of microgrids and energy storage systems to mitigate the impacts of PSPS events and support the state’s transition to a sustainable energy future.
Energy Vault’s successful execution of the CRC project positions the company as a leader in the energy storage industry. The collaboration with Eagle Point not only facilitates the current project but also sets the stage for future initiatives aimed at integrating innovative energy storage solutions into the grid. This partnership exemplifies the potential for combining financial expertise with technological innovation to address pressing energy challenges.
