Energy Vault added US$191 million to its cash reserves with its NYSE listing

Gravity energy storage company Energy Vault added US$191 million to its existing cash reserves when it floated on the New York Stock Exchange (NYSE) in February.

The Swiss-American startup is developing a new energy storage technology based on gravitational energy. Although it previously stated shortly before its IPO that it had not yet perfected its grid-scale energy storage system (ESS) product, EVx, the company said more recently that construction work had started on a 25 MW/100 MWh project in China.

According to its quarterly financial results that it announced a few days ago, a licensing agreement from Atlas Renewable – a US company specially created to create connections between the US and Chinese renewable energy industries – generated revenues of 42 .9 million in the first quarter of 2022.

Compared to a GAAP net loss of $20.1 million largely related to the cost of its merger with special purpose acquisition company (SPAC) Novus Capital Corporation II, its GAAP operating profit was 20. $8 million for the quarter.

Its transaction with Novus Capital, which took the company public, included a private investment of US$50 million in public equity commitments (PIPEs) from Atlas Renewable and Korea Zinc. Energy Vault ended the quarter with $303.5 million in cash and cash equivalents.

Energy Vault also said it was in talks with Indian power producer NTPC and Enel Green Power regarding possible deployments in India and the United States respectively. An 18 MW/36 MWh project in Texas with Enel is expected to start in September, the company said.

It also develops software solutions as part of its energy management platform division to which it appointed energy storage and cloud computing industry veteran John Jung, and also recruited a number of key management and advisory board members in the first quarter.

“We made significant progress in our growth strategy this quarter by signing several new agreements and memorandums of understanding with world-class customers who have also chosen to make significant investments in Energy Vault, including with Korea Zinc and Atlas. Renewable, which expanded our footprint in Australia and China, where we inaugurated our first EVx deployment in March 2022,” said CEO Robert Picconi.

The company plans to make further announcements on deployments of EVx and its Energy Vault Solutions software platform in the United States, China and Australia in 2022, Picconi said.