Energy storage developer and system integrator Energy Vault has completed its acquisition of the 125MW/1,000MWh Stoney Creek battery energy storage system (BESS) in New South Wales, Australia, after receiving approval from the country's Foreign Investment Review Board (FIRB). The acquisition coincides with the company's announcement of Q2 2025 revenue of US$8.5 million, representing a 126% year-on-year increase.

The New York Stock Exchange-listed company first announced plans to acquire the 8-hour duration BESS in March 2025 from Australian-owned developer Enervest Group. Following regulatory approval, Energy Vault formalized its investment decision, enabling complete acquisition and control of the project's development and operations.

Strategic Expansion into Australian Market

The Stoney Creek BESS project formally enters Energy Vault's international "Own & Operate" portfolio, advancing the company's long-term asset management strategy in the Australian market. The 125MW/1,000MWh utility-scale BESS represents a significant milestone in the company's international expansion strategy and is anticipated to be one of the first Australian projects in Energy Vault's "Own & Operate" portfolio.

The project was awarded a 14-year Long-Term Energy Service Agreement (LTESA) under Roadmap Tender Round 5 for long-duration energy storage (LDES). In total, 14GWh of energy storage was provided LTESAs, which aim to deliver predictable, contracted revenue during a specified period, helping to de-risk the project and accelerate investment in critical storage infrastructure.

Currently in the development phase, the Stoney Creek BESS is expected to begin construction in 2025, creating up to 150 jobs at its peak and four full-time operational roles once completed. The project has been designed to deliver eight hours of dispatchable energy and will offer critical dispatchable capacity to support peak demand, enhance grid stability, and enable deeper integration of renewable energy sources across New South Wales.

Technology Integration and Operations

Energy Vault penned a deal with Enervest last year to supply its X-Vault integration platform and its UL9540 and AS3000 certified B-VAULT product for the Stoney Creek BESS. The organization also said it would utilize its Vault-OS Energy Management System to control, manage and optimize the BESS operations.

Coupled with Energy Vault's proprietary VaultOS platform and advanced B-VAULT storage technology, the Stoney Creek BESS will support grid reliability and flexibility in a strategic location within NSW's transitioning energy landscape. Robert Piconi, chairman and CEO of Energy Vault, stated that the acquisition aligns with the company's "Own & Operate" business model.

"As the first non-US project developed under our global 'Own & Operate' asset strategy, Stoney Creek underscores our focus on attractive, high-growth markets for energy storage solutions supported by favourable regulatory policies, as is the case with Australia," Piconi said. He added that the formal acquisition represents "a first and very significant milestone in Energy Vault's long-term investment strategy for Australia."

Financial Performance and Market Position

Energy Vault reported Q2 2025 revenue of US$8.5 million, a 126% increase compared to the same period last year. However, this figure remains flat compared to Q1 2025, which also stood at US$8.5 million, representing a 10% year-on-year increase for that quarter. According to the group, the Q2 growth was driven by project deliveries in Australia and the commencement of the 57MW/114MWh Cross Trails BESS in Texas.

The Cross Trails BESS commenced commercial operation in June 2025, ahead of schedule, and was quickly followed by US$18 million financing. It has a 10-year offtake agreement with optimizer Gridmatic, which also provides qualified scheduling entity (QSE) services.

Energy Vault's gross margin reached 29.6%, an improvement from 27.8% in the same quarter last year but decreased from the 57.1% achieved in Q1 2025. Despite these improvements, Energy Vault reported an earnings per share of -US$0.22, falling short of the forecasted -US$0.11.

The company's contract revenue backlog increased by 47% to US$954 million, and Generally Accepted Accounting Principles (GAAP) gross profit rose by 140% to US$2.5 million. Despite an adjusted EBITDA loss of US$13.7 million, this represents an 11% improvement from the prior year. Energy Vault also enhanced its cash position by 23% to US$58.1 million and completed significant project financings, such as the US$18 million for the Cross Trails BESS project.

Future Growth Strategy and Asset Vault Initiative

Looking ahead, Energy Vault anticipates full-year 2025 revenue between US$200-250 million, supported by its growing project pipeline and strategic initiatives like "Asset Vault." In conjunction with the Stoney Creek acquisition and Q2 results, Energy Vault announced the launch of "Asset Vault," a new platform designed to accelerate the execution of its global energy storage project pipeline.

This initiative is supported by a US$300 million preferred equity investment from an undisclosed "leading multi-billion-dollar infrastructure fund." Asset Vault will consolidate Energy Vault's owned storage portfolio, including a 3GW pipeline of battery energy storage projects, and leverage the company's internal engineering, procurement, construction, and operational capabilities. According to Energy Vault, this will help accelerate the deployment of 1.5GW of energy storage projects in the US, Europe, and Australia.

Energy Vault has struggled to retain its share value since listing via a special purpose acquisition company (SPAC) merger in April 2021. It has received multiple notices from the NYSE that the average share price was below the US$1 threshold required. The company became known for a novel gravity-based energy storage technology based on raising and lowering 30-tonne weights, which it was positioning to commercialize around the time it got its listing via merger with a special purpose acquisition company (SPAC) in 2022.

Since then, it has diversified with pivots into lithium-ion BESS system integration and services, a green hydrogen arm currently developing a 293MWh multi-day long-duration energy storage (LDES) microgrid in California, and, most recently, with the latest announcement, developing projects to own. Stoney Creek represents one of several large-scale 'own and operate' assets Energy Vault is advancing across Australia, underpinning a growing pipeline of energy storage deployments.