Energy Vault Secures $28 Million in Financing for Innovative Calistoga Resiliency Center — Transforming Wildfire Power Resilience
WESTLAKE VILLAGE, Calif. — Marking a pivotal advancement toward a more sustainable and resilient energy landscape, Energy Vault Holdings Inc., a key player in developing grid-scale and sustainable energy storage solutions, has successfully finalized $28 million in project financing for the Calistoga Resiliency Center (CRC). This achievement, revealed on April 1, 2025, includes the monetization of Investment Tax Credits (ITC) pertinent to the project and underlines Energy Vault’s rapidly advancing role as both a technology provider and asset owner/operator within the energy storage sector.
A Novel Approach to Resilience in the Face of Climate Challenges
The northern sections of California, particularly areas such as Calistoga, are becoming increasingly vulnerable to power outages because of rising wildfire threats. Utility companies, including Pacific Gas & Electric Company (PG&E), have introduced Public Safety Power Shutoff (PSPS) programs to alleviate fire hazards associated with power infrastructure during severe weather. Although helpful in averting fire incidents sparked by equipment, these shutoffs can result in prolonged power loss for entire communities—interrupting health services, business operations, and the safety of residents.
The Calistoga Resiliency Center confronts this issue with a zero-emission, hybrid microgrid system that prioritizes clean energy and resilience. Established under a tolling agreement with PG&E, the CRC provides advanced energy solutions continuously when the grid fails. At its core is a fully-integrated system that merges hydrogen fuel cells with Energy Vault’s proprietary B-VAULT™ lithium-ion battery systems, orchestrated by VaultOS™, the company’s technology-neutral energy management platform.
System Features: Extended Duration, Clean Energy Storage
The CRC microgrid boasts 293 megawatt-hours (MWh) of storage capacity, enabling roughly 48 hours of continuous operation at a peak power output of 8.5 megawatts (MW). During PSPS occurrences, it effortlessly shifts into “island mode,” allowing isolated action away from the larger grid. In this mode, green hydrogen fuel cells significantly assist in electricity production, with the battery system offering instant power support, black-start capabilities, and grid-forming functions.
These capabilities are vital for communities like Calistoga, which reside in historically high fire-risk zones with only one primary transmission line. By ensuring that infrastructure can operate autonomously during outages, the system enhances reliability, safety, and public trust—without any emissions.
Focused Growth via ‘Own & Operate’ Asset Strategy
This $28 million funding not only backs a significant infrastructure initiative—it represents a vital financial advancement under Energy Vault’s ‘Own & Operate’ business strategy. First introduced in May 2024, this approach revolves around Energy Vault owning and managing its energy storage sites, which enables the generation of long-term, high-margin tolling revenue through contracts for power dispatch and storage services with utility providers such as PG&E.
As stated by Robert Piconi, CEO and Chairman of Energy Vault, “The successful financing of the Calistoga Resiliency Center showcases our team’s dedication and execution as we enter 2025 by replenishing cash to our balance sheet from the prior year’s capital expenditures spent on developing the system.”
With the system now mechanically complete and undergoing final commissioning, the CRC is anticipated to be fully operational by Q2 2025. The project’s timely advancements not only indicate operational capability but also bolster the company’s confidence in applying similar models in other locations.
Promoting Compliance with Clean Energy and Scalable Solutions
The Calistoga Resiliency Center aligns seamlessly with California’s Renewable Portfolio Standard (RPS), providing a carbon-neutral, long-duration approach to energy reliability. It is the first and only zero-emission, hybrid hydrogen-battery microgrid designed to support critical infrastructure during extreme climate situations. The entire setup is managed by VaultOS™, ensuring synchronized, real-time administration across various technologies while maintaining direct connection with PG&E’s Distribution Control Center.
The potential impacts extend beyond Calistoga. Energy Vault envisions this project as a prototype for potential nationwide and possibly global deployment in areas impacted by climate challenges, including wildfires and severe weather extremes. With additional projects in the pipeline—including the Cross Trails and Customer R&D Center microgrids in Snyder, Texas—Energy Vault is initiating a multi-phase expansion of resilient energy storage technologies.
Investment and Market Insights
The financing arrangement highlights a growing interest from investors pursuing environmentally beneficial and economically viable infrastructure opportunities. With stable returns supported by long-term utility tolling contracts and government-backed tax incentives, initiatives like the CRC are projected to deliver appealing internal rates of return (IRRs).
Additionally, Energy Vault’s capacity to swiftly monetize ITC credits illustrates the company’s financial flexibility and replicable model in funding clean energy storage solutions. This model is particularly aligned with the emerging U.S. tax frameworks supporting the Inflation Reduction Act and related green energy efforts.