Energy Vault expands global footprint

Energy Vault Holdings, a leader in sustainable, grid-scale energy storage solutions, has recently announced a new licensing and royalty agreement in the SADC region. The agreement is forecasted to play a pivotal role in meeting the region's growing energy storage needs, which are projected to exceed 125 Gigawatthours by 2035. Robert Piconi, the CEO and Chairman of Energy Vault, joined CNBC Africa to shed light on the implications of the agreement. According to Piconi, the agreement spans over a decade and encompasses the deployment of the company's energy storage solutions, particularly focusing on their gravity energy storage technology. This innovative long-duration energy storage solution not only includes an exclusive license period but also incorporates royalties tied to volume. The significance of this agreement for the SADC region lies in providing a diverse range of energy storage solutions to aid in the transition towards renewable energy sources and reduce reliance on coal power. In regions like South Africa, grappling with an energy crisis and frequent load shedding incidents, the integration of renewables coupled with energy storage becomes indispensable to enhance grid stability and reliability. Piconi emphasized that addressing intermittency through energy storage is crucial for renewables to effectively serve as base load power, facilitating the phasing out of coal-based power plants. Energy Vault's partnership with GESOL, which includes a major EPC company WBHO, is set to facilitate the deployment of energy storage solutions in South Africa. The collaboration aims to leverage local expertise and regulatory knowledge to cater to the specific energy needs of the region, encompassing public utilities, independent power producers, and industrial consumers. Looking ahead, Energy Vault plans to extend its impact beyond the SADC region by exploring opportunities across other African countries. The company's diverse portfolio of storage technologies, ranging from short-duration batteries to long-duration gravity-based solutions, reflects its commitment to addressing various energy storage requirements in the continent. The scalability and adaptability of Energy Vault's solutions position it as a key player in advancing sustainable energy infrastructure across Africa. From an investment perspective, the licensing agreement signifies a transfer of intellectual property to the region and underlines the importance of partnering with local entities to promote job creation and stimulate economic growth. Notably, Energy Vault's gravity-based energy storage can be entirely manufactured in South Africa, offering a sustainable and cost-effective solution that aligns with the country's localization objectives. The company's focus on fostering local talent and skills development further underscores its commitment to driving socio-economic progress in the region. In line with its global expansion strategy, Energy Vault aims to capitalize on promising markets with significant energy storage needs and renewable energy potential. By targeting regions like South Africa, known for high greenhouse gas emissions due to coal dependence, the company is actively contributing to the global decarbonization efforts. The long-term vision for Energy Vault entails expanding its footprint in key markets worldwide and leveraging its expertise to accelerate the transition towards clean energy sources. Robert Piconi's insights underscore the strategic importance of the licensing agreement in advancing energy sustainability and resilience in the SADC region and beyond.