Saudi Aramco invests in Energy Vault's gravitational energy storage system driven by block-stacking technology
In a significant move for the clean energy sector, the startup Energy Vault has secured an investment from Saudi Aramco Energy Ventures. This investment marks a sign of confidence in Energy Vault's innovative approach to long-duration energy storage.
Energy Vault, known for its unique method of storing clean electricity by stacking blocks, received a $110 million investment from SoftBank back in 2019. The investment from Saudi Aramco, which typically invests between $2 million and $20 million at a time, represents a record for equity investment in a company developing grid storage technology.
Despite the timeline, it's worth noting that Energy Vault did not deliver on its original promise of building a commercial project in India for Tata Energy in 2019. However, the startup has since completed its first commercial-scale project. In July 2020, Energy Vault connected a 5-megawatt/35-megawatt-hour block-stacking tower to the Swiss grid.
The system, which uses six crane arms to hoist and stack composite blocks, is significantly larger than the norm for novel long-duration technologies. This project allows customers to test out operations and protocols in the real world, paving the way for future commercial projects.
It's important to note that Energy Vault's grid storage technology differs from vehicle batteries. Instead of storing energy in a battery, Energy Vault stores it by physically stacking blocks that rapidly lower when discharged to generate electricity.
The investment from Saudi Aramco was driven by the strategic value of having the largest energy company in the world endorsing Energy Vault's vision. The funds from both SoftBank and Saudi Aramco are being utilised for global development.
However, it's worth mentioning that Energy Vault has not spent all the $110 million received from SoftBank. There is no publicly available detailed information specifying the exact amount of the SoftBank investment that has not yet been spent to date.
The long-duration storage sector is replete with companies that have existed far longer than Energy Vault without breaking into megawatt-scale projects. Energy Vault's success in completing its first commercial-scale project is a promising step towards disrupting this sector and proving the viability of its unique approach.
