SoftBank to invest $110m in brick tower energy storage start-up

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Series B Energy Vault funding marks first time Vision Fund 1 has invested in sector

SoftBank Vision Fund will invest $110m into an energy storage start-up, Energy Vault, that plans to build huge brick towers that can store energy, marking the Vision Fund’s first foray into the fast-growing storage sector.

The Lugano-based start-up said it would use the funding to pursue a rapid global deployment strategy, simultaneously building commercial-scale projects on four continents.

The Series B funding of Energy Vault marks the first time the $97bn SoftBank Vision Fund 1 has invested in energy storage, although renewable energy has long been a key area for the broader SoftBank Group.

Energy Vault’s storage system uses a crane to lift heavy bricks into a tower formation, with machine vision and algorithms to operate the crane.

When excess power is on the grid, for example from renewable energy on a very windy or sunny day, that power can be used to stack up the giant bricks — which weigh 35 tonnes each. Then when power is needed, the crane lowers bricks back down to the ground using the force of gravity to generate electricity.

Energy Vault has a one-quarter-scale pilot tower in Switzerland that became operational last year, and will complete a demonstration unit in northern Italy by the end of this year.

“The beauty of the Energy Vault solution lies in its simplicity,” said Akshay Naheta, managing partner for Emea at the SoftBank Vision Fund. “It’s like what we all learned in fifth-grade science, you can convert one form of energy into another very easily.”

Energy storage is seen as one of the main technological bottlenecks that is holding back the deployment of renewable energy worldwide. Current systems such as lithium ion batteries or pumped hydro storage are, respectively, too expensive and too geographically limited to be deployed on a large scale.

Robert Piconi, chief executive of Energy Vault, said the funding would help the company construct projects on four continents where it has commercial agreements already in place.

“We will be able to do multi-continent deployment concurrently,” said Mr Piconi. “When we launched in November 2018, the demand was so overwhelming and there was no region I could single out, it was across every continent.”

He emphasised that the energy towers can be a cost-efficient way of storing power, because the giant bricks can be constructed from local materials such as compressed soil combined with a special sealant produced by Cemex.

The Vision Fund will take a seat on the board of Energy Vault, and SoftBank is the sole participant in the series B round. Previous investors in the start-up include Cemex, the global cement company.

SoftBank will be a customer of Energy Vault, Mr Naheta said, without disclosing any details.

Energy Vault is also building a tower for the Tata Power company that will have a peak power delivery of 4MW and storage capacity of 35 megawatt-hours.

Tower Of Power: $110 Million Investment Primes Energy Vault To Take On Global Energy Storage Markets

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Energy storage company Energy Vault announced today a $110 million dollar investment from Japan’s SoftBank Vision Fund. This investment will set the company on the path to accelerating its development of large energy storage projects with its unique gravity-assisted technology.

If you haven’t heard of Energy Vault, in part that’s because they only recently announced themselves at last year’s Energy Storage North America Conference in November and have maintained a relatively low profile since then. CEO and Co-Founder Robert Piconi noted that this measured PR strategy to date has been deliberate, commenting, “we only announce things when they are very significant.”

An increasing profile in an electric industry hungry for storage

That low profile may be about to change though, even as the entire energy storage market has significantly increased its presence in 2019. In recent months, the news from the storage industry has ramped up significantly. Eye-popping projects have recently been announced, such as 8minute’s agreement with Los Angeles Department of Water and Power to supply 200 megawatts (MW) of solar energy at under $20 per MWh, combined with energy storage with 100 MW of four hours of battery storage for an additional $13 per MWh. We have seen other recent announcements of large battery storage projects, some as big as NextEra’s Manatee Solar/Storage undertaking involving 409 MW and 900 megawatt-hours (MWh) and a 495 MW energy storage project from Intersect Power that may be developed Texas.

However, these projects utilize lithium ion batteries, and are typically limited to relatively short durations, storing and shifting no more than four hours of intermittent renewable energy to periods when it is most needed.

By contrast, Piconi notes that the Energy Vault system is capable of delivering energy for far longer periods. To understand this crucial difference, one has to first understand lithium ion batteries, and then appreciate the logic of Energy Vault’s approach.

First, let’s address the batteries: To oversimplify, it’s perhaps best to think of lithium ion batteries as Lego-type building blocks with fixed ratios of energy relative to capacity. If one needs capacity (a quick release of energy), as if you were stacking the blocks vertically, and shortening the timeframe. By contrast, if one wants a longer release of energy (capacity over a longer timeframe) one would line the blocks up horizontally. Thus, for example, if you have four MWh of batteries, you could use them to get four MWs of capacity for one hour or one MW of capacity for four hours. At today’s prices, if you need lots of energy – say eight or 10 hours – a lithium ion system is simply too cost-prohibitive.

Enervault’s tower of power (and energy)

Energy Vault does not suffer from such limitations. The company’s technology combines a nearly 500-foot tower (the height of a 35 story building) with machine vision software controlling cranes, pulleys, and cables to raise or lower huge composite bricks. If the bricks are being elevated, energy is being pulled from the grid. If the bricks are being lowered, they deliver energy and/or capacity back to the grid. (There is perhaps no better way to understand how this works than to view the company’s remarkable and futuristic-feeling video). As one increases the net quantity of bricks that are moved up or down over a given duration, one stores or releases corresponding amounts of energy.

This approach allows the company to take on the challenge of long-term energy storage, which until now has largely been the realm of pumped hydro systems with large reservoirs. However, few pumped hydro facilities are being built anymore, since they can cost as much as $1 billion dollars, involve lengthy environmental permitting processes, and take years to build. Another emerging potential competitor for longer duration storage is cryogenic storage (liquid air), such as Highview Power, which recently announced a partnerships with Tenaskato develop giga-watt scale projects in the U.S. However, its round-trip efficiency (the energy lost in the process of absorbing and then releasing energy back to the grid) is roughly 60%, compared with Energy Vault’s, which stands at between 80% and 90%.

The bricks themselves are modular, and can be manipulated individually, with multiple cranes and pulleys moving numerous blocks at the same time. As a consequence, the Energy Vault system can ramp quickly and deliver (or absorb) large amounts of capacity and longer-term energy, depending on the need. The system is remarkably fast: According to Piconi, it can ramp from zero to 4 MW in 2.9 seconds, and is nearly linear in its delivery profile, providing milli-second response, and the delivering the first 1.3 MW in one second. The standard 35 MWh system is also relatively large, combining a tower of 150 to 160 meters with 6,000 to 7,000 bricks that each weighing 35 metric tons.

Piconi sees Energy Vault’s ability to easily value stack (tap into different revenue streams) as one of its chief differentiators, and notes that the services offered range from black start (bringing the grid back online in the event of an outage), to shorter term grid balancing services or providing 8 to 10 hours of back-up energy to help firm up intermittent renewable energy offerings.

The bricks are foundational

The pulleys, cranes, and motors are off-the-shelf equipment. The software that autonomously interacts with the grid, receives the market signal, and notifies the system which blocks to raise or lower, and for how long, is custom-designed and highly sophisticated.

However, the true secret sauce may lie in the recipe for the massive bricks. Early in the development process, Piconi’s team soon recognized that it would be too expensive to use normal concrete. Enter Mexican cement and building materials manufacturer CEMEX, (it coincidentally has its R&D and Innovation center headquartered in Switzerland) which reached out to Energy Vault when news of the company started to spread.

CEMEX’s material science team had already developed technology to make road pavement and other material composites from basic soil and other simple input materials, and the two companies began to collaborate to develop a new material that would be lightweight, durable (lasting 30 or more years), inexpensive and capable of incorporating multiple waste materials, such as used debris concrete, coal ash, industrial slag, and even the local site soil. CEMEX then focused its materials science group to successfully develop a solution that would meet those criteria for a new energy storage application. As a result, Energy Vault may not only get paid for grid services but also for incorporating waste materials into future projects, absorbing material that would otherwise have to be landfilled.

Where SoftBank’s investment will go

The $110 million Series B funding round will allow the company to develop projects that follow on the heels of its existing quarter-scale demonstration installation in Switzerland. The initial project, which has been functioning since July 2018, has allowed the company to refine the software that controls the system, test the durability of the composite bricks, and improve overall efficiencies in order to provide a cost-effective storage solution.

Piconi says the company is now satisfied it has a technology that works, at a price the market wants, “We knew we needed to be around three to four cents levelized cost per kWh ($30 – $40 per MWh) to add to PV or wind in order to be competitive below fossil. This took a lot of innovation.” The result is a storage technology that when combined with renewables can undercut conventional natural gas-fired generation.

Piconi indicated the global response to the technology has been “overwhelming,” with interest coming from numerous prospects, including developers, utilities, and corporates on multiple continents. Energy Vault is evaluating longer-term relationships and contractual obligations and Piconi notes that when the time comes, “we will be announcing some joint and individual partnerships.”

Piconi notes that Energy Vault’s first full-scale demonstration project is expected to come online in northern Italy by the end of 2019, with other projects to follow in 2020. The infusion of capital enables Energy Vault “to really go global and scale the company at a much faster pace, with concurrent multi-continent deployments…We’ve got something interesting and sustainable. We believe it will help with the transformation the world needs.”

Massive Softbank Fund Bets on Using Blocks as Batteries

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SoftBank Group Corp.’s massive Vision Fund is making its first-ever energy storage bet — and it’s on a rather unconventional type of battery.

The fund, created by Japanese tech giant SoftBank Group Corp., is investing $110 million in Energy Vault, a Swiss startup that’s using cranes and concrete to store energy. An electric crane hoists up blocks of concrete and stacks them into a tower when power is plentiful. When power is needed, it uses gravity to take the structure apart brick by brick. The weight of the descending blocks converts kinetic energy into electricity.

The startup faces stiff competition. Huge lithium-ion batteries have emerged as the storage of choice for utilities looking to deal with short-term fluctuations on their grids. The costs of those have plunged 85% since 2010. Entrepreneurs have long pitched alternatives that can hold more energy and supply for longer — including ones that compress and liquify air and split and store hydrogen, but none have taken off the way lithium-ion has.

Softbank’s $100 billion Vision Fund is betting on the need for more affordable and bigger storage systems to expand the use of renewable power and wean the world off fossil fuels. Even as the price of wind and solar plummets, they remain intermittent, supplying electricity to the grid at some times and not others. Unlocking a cheap way to bottle up clean power and dispatch it at will could change everything.

Click here for a video explaining how Energy Vault’s system works.

Energy Vault uses the same principle that’s long been employed by pumped-hydro storage dams, which use huge reservoirs and gravity to store energy and generate power. SoftBank is convinced the tower concept can scale quickly, with the systems installed next to existing solar power plants or wind farms.

“The minute you have one solar power plant with these towers up and running, we think the scalability goes through the roof,” Akshay Naheta, managing partner for SoftBank Investment Advisers, said in an interview.

He estimates the system can be deployed for 15% of the price of a similarly-sized lithium-ion battery installation. SoftBank itself will become one of Energy Vault’s customers and is installing one of the systems at an undisclosed location, Naheta said. Energy Vault also is building a demonstration plant in Italy and a plant for India’s Tata Power Company Ltd.

Robert Piconi, Energy Vault’s co-founder and chief executive officer, said the technology will allow wind and solar facilities to supply electricity to the grid 24 hours per day, undercutting the costs of fossil fuel plants. Grid-scale lithium-ion battery packs, in contrast, typically deliver power for just four hours.

“We’re solving a problem that, today, there’s just not a lot of answers for,” Piconi said.

One advantage is that Energy Vault’s technology can be installed almost anywhere, unlike pumped-hydro systems that need at least two massive reservoirs at different elevations to work. That said, Piconi does not expect Energy Vault’s concrete towers to sprout in urban centers, where the aesthetics may not be appreciated.

“Obviously, this is not something that’s going to fit in the middle of a city,” he said.

Vision Fund makes $110 million bet on renewable energy storage

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LONDON (Reuters) – Softbank Group’s (9984.T) Vision Fund has made its first foray into energy storage technology with a $110 million investment in Switzerland-based Energy Vault.

While many countries are keen to use renewable energy as part of efforts to cut carbon emissions in the fight against climate change, the challenge has been to find a way to store it for later use, particularly overnight or when demand surges.

Inspired by the physics and mechanical engineering used in hydro plants, Energy Vault says its technology enables renewable energy to be stored in 35-ton bricks and delivered as baseload power for less than the cost of fossil fuels at any hour of the day.

Most rival solutions focus on some form of battery storage, be it lithium ion, sodium-sulphur, lead-acid, among others. While costs have been falling – by nearly 40% since 2015 according to Wood Mackenzie – most degrade over time.

“Energy Vault solves a long-standing and complex problem of how to store renewable energy at scale,” Akshay Naheta, managing partner at SoftBank Investment Advisers, said in a statement on Thursday, announcing Vision Fund’s $110 million investment. “Energy Vault is highly complementary to SoftBank’s existing energy portfolio and we are pleased to further the company’s global development.”

Energy Vault launched in late 2018 and has already partnered with Mexican materials company CEMEX and India’s The Tata Power Company as it looks to complete a test phase and then build its first commercially functioning site.

Despite normally investing at a later stage in a company’s development, Softbank believed Energy Vault could scale quickly and potentially not need to do a later funding round, hence the drive to take an early stake, Naheta said.

The potential rewards are large. The global energy storage market is expected to reach 22.2 GW in 2023, from nearly 5 GW at the end of 2018, according to a report in May by data and analytics company GlobalData.

Robert Piconi, chief executive and co-founder of Energy Vault, said despite planning to grow the business country by country, the scale of pent-up global demand for a scaleable solution convinced them to move faster.

“The Vision Fund shares our passion to combat climate change through innovation in energy storage technologies and, with its support as a strategic partner, Energy Vault is well positioned to meet the large and currently unmet demand for sustainable and economical energy storage worldwide,” Piconi said.

SoftBank Vision Fund makes its first-ever investment in an energy company

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SoftBank’s Vision Fund announced its first investment in an energy company on Thursday, marking a shift for the $100 billion fund that has made its name pouring money into big tech companies like Uber, WeWork and Slack.

The Vision Fund said it completed a $110 million investment in Swiss start-up Energy Vault, which creates renewable energy storage products. Energy Vault’s system uses recycled concrete blocks built into a tower that can store and release energy.

“For the first time, we’ve got a cost point in economics with energy storage that enables renewables to be deployed below the cost of fossil fuel,” Energy Vault co-founder and CEO Robert Piconi told CNBC’s “Squawk Box Europe” Thursday.

SoftBank’s Vision Fund, which launched in 2017, has disrupted the venture capital model by injecting billions of dollars into start-ups, driving up their valuations. The Fund said last week its operating profit had jumped 66% year-on-year in the last quarter, thanks to valuation increases companies like food delivery platform Doordash and Indian hotel-booking firm Oyo. It said its $66.3 billion investment in 81 tech firms is now worth $82.billion.

The Vision Fund’s portfolio has so far been weighted heavily toward tech companies focused on transportation and logistics like Uber and its Southeast Asian rival Grab, as well as enterprise firms like Slack and “frontier tech” names like British chip designer Arm. In July, SoftBank launched a $108 billion-Vision Fund 2 that will target companies developing artificial intelligence.

Energy Vault did not disclose its valuation as part of the latest investment. Piconi said the funding will be used to help scale the company’s storage technology on a “multi-continent basis.” Andreas Hansson, partner for SoftBank Investment Advisers, will join Energy Vault’s board of directors as part of the investment.

SoftBank Vision Fund makes first energy bet

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Swiss startup Energy Vault raises $110m to deploy brick storage towers worldwide

TOKYO — SoftBank Group‘s near $100 billion Vision Fund made its first bet in the energy sector with a $110 million investment in Switzerland-based startup Energy Vault.

The funding will enable Energy Vault to deploy its huge brick energy-storage towers across the world, the company said on Thursday.

“We looked at who can bring a global network to accelerate our deployment, and SoftBank was an easy choice,” said co-founder and CEO Robert Piconi in a phone interview. He declined to comment on the financial terms of the deal.

Earlier investors include the corporate venture capital arm of Mexican cement giant Cemex.

The cost of storing energy is considered a major problem for the renewable energy sector. Founded in 2017, Energy Vault is developing a tower that moves thousands of giant, 35-metric ton bricks to store excess energy.

The company says the system is more affordable and easier to deploy than conventional pumped hydro storage systems.

Energy Vault plans to demonstrate a tower with a 35-megawatt hour storage capacity for the first time during the fourth quarter in Italy, and has agreements with customers in four continents.

SoftBank operates a renewable energy business within and outside Japan. But the deal marks the first time that the Vision Fund — which mainly invests in disruptive artificial intelligence technology — is venturing into the energy sector.

Energy Vault said it is developing machine vision software that enables the towers to operate autonomously.

SoftBank invests $110 million in a startup trying to solve a big problem in renewable energy with a giant brick-lifting crane

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SoftBank’s $1 billion Vision Fund has invested $110 million into Energy Vault, a Swiss startup that has come up with an innovative way to store renewable energy to meet the ebb and flow of demand.

It’s SoftBank’s first investment into an energy-storage company and marks growing investor interest in the space as countries shift away from fossil fuels.

One of the thornier issues in the switch to renewable energy is that energy provided by the weather is, naturally, dependent on the weather.

A sunnier or gloomier day will dictate whether energy production goes up or down, potentially overloading the grid. That can lead to power cuts. And most power grids were built with fossil fuel rather than renewable sources in mind. The issue then is around capturing and storing any excess energy for days and months when consumer demand is higher.

Some firms are already working on short-term energy storage — it’s why Tesla built a giant lithium-ion battery next to a wind farm in Australia. But, according to Robert Piconi, the CEO and cofounder of Energy Vault, batteries work only to smooth out short-term spikes in energy demand. You need other technologies to store renewable energy for months at a time, something that is likely to become more common.

“You want to store that in an efficient way, in a way that doesn’t degrade,” he told Business Insider. “Like in a chemical battery — if you’re going to store it, that solution is going to degrade over time.”

This stack of concrete bricks is Energy Vault’s alternative to the giant battery:

The stack is made up of 35-metric-ton bricks, topped by an autonomous six-arm crane. As a solar or wind farm produces surplus energy, the crane’s software directs it to pick up and stack the bricks to form a tower. Energy is stored in the elevation gain. As and when energy is needed, the crane’s software returns to the bricks from the ground and turns the resulting kinetic energy into electricity.

The tower can be as big as needed, and Energy Vault says each plant has a capacity of between 10 and 35 megawatt-hours and power output of between 2 and 5 megawatts.

The concept, according to Piconi, is similar to mainstream pumped hydro-storage solutions, which use a reservoir and dam system to store energy. With pumped hydro, however, “you have a dependency on that topography and if you build it, it hurts the environment.”

“It hurts the wildlife and the local ecosystem,” Piconi said. “So while that’s the largest type of energy storage today, all the best locations have been built. And it’s not mobile, you can’t go build in other locations.”

Ravi Manghani, the head of energy storage at the consultancy Wood Mackenzie, said Energy Vault’s tower “has all the makings of good long-duration storage.”

He said: “It’s cheap, it’s readily off-the-shelf for the most part, and it’s going to last forever if you take care of it. It’s not a lot of manufacturing investment to build those blocks, and then it can last decades, unlike some current technologies. Most of the battery storage would last about 10 or 20 years, but here we’re talking about lasting double that.”

Energy Vault was founded in 2017 and launched in 2018, and has announced Tata Power, one of India’s biggest energy providers, as a customer. It’s building a 35 megawatt-hour tower in Milan for completion this year. It also has a partnership with the Mexican materials firm CEMEX.

According to Piconi, the money from SoftBank is part of the Japanese investor’s efforts to back big global ideas, such as tackling climate change. “They’re trying to invest in things that solve big world problems, climate change being, I think, one of the highest priority problems we have,” he said. “It’s no surprise SoftBank would be trying to find a solution in energy storage.”

Manghani said SoftBank’s backing signaled growing investor interest in energy storage. “It does speak volumes about which the direction of storage investment is going. We’ll see many more investments in the coming months and years as this area gets more mature.”

SoftBank’s first bet in energy storage is a startup that stacks blocks

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SoftBank’s Vision Fund is investing $110 million in the Swiss startup Energy Vault, which stores energy in stacked concrete blocks. Quartz was the first to report on the startup when it came out of stealth mode last year.

Two things make this investment unprecedented. First, it’s an unusually large sum for a company that hasn’t even existed for two years or built a full-scale prototype. Second, by making an energy storage bet, the $100 billion SoftBank Vision Fund—which has invested in startups like Uber, Slack, WeWork, and Paytm—is signaling to the wider market that this area of technology is ripe for large investments.

So far, most investments in energy storage have gone to companies building lithium-ion batteries. They’re an attractive bet, because carmakers are willing to pay a premium for batteries that will help electric cars compete with their gas-powered cousins.

But the technology to store electricity doesn’t need to be as powerful as lithium-ion batteries. While companies like Tesla and Sonnen sell lithium-ion batteries for homes and, in larger packages, for the grid, Energy Vault’s bet is that its technology will prove to be cheaper. That’s because it uses low cost materials: cement and sand to make blocks, cranes to lift and drop the blocks, and reversible motors to convert electricity into potential energy and vice versa.

Energy Vault was founded in 2017, and it built its first energy-storage prototype in only nine months with less than $2 million. Now Akshay Naheta, a managing partner of SoftBank’s Vision Fund, believes the startup is ready for an injection of a large sum to deploy its technology around the world.

Fifth-grade physics

Here’s how that system works, as we explained previously:

A 120-meter (nearly 400-foot) tall, six-armed crane stands in the middle. In the discharged state, concrete blocks weighing 35 metric tons each are neatly stacked around the crane far below the crane arms. When there is excess solar or wind power, a computer algorithm directs one or more crane arms to locate a concrete block, with the help of a camera attached to the crane arm’s trolley.

Once the crane arm locates and hooks onto a concrete block, a motor starts, powered by the excess electricity on the grid, and lifts the block off the ground. Wind could cause the block to move like a pendulum, but the crane’s trolley is programmed to counter the movement. As a result, it can smoothly lift the block, and then place it on top of another stack of blocks—higher up off the ground. The system is “fully charged” when the crane has created a tower of concrete blocks around it.

When the grid is running low, the motors spring back into action—except now, instead of consuming electricity, the motor is driven in reverse by the gravitational energy, and thus generates electricity.

Since it came out of stealth mode last year, revealing a one-tenth scale prototype in Biasca, Switzerland, the company has received plenty of interest from potential customers, says Rob Piconi, Energy Vault’s CEO. The SoftBank investment will help it first build a full-scale prototype—one each in Italy and India—and then build multiple towers—each with a capacity of 35 MWh—for actual customers soon after.

“We at the Vision Fund want to come in when a technology is proven and it’s ready to scale. That’s what’s so exciting about this technology. It’s not a science problem. It’s fifth-grade physics,” said Naheta. “There will be teething problems with any new technology. But this is more of a scaling problem.”

Energy Vault raises $110 million from SoftBank Vision Fund as energy storage grabs headlines

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Imagine a moving tower made of huge cement bricks weighing 35 metric tons. The movement of these massive blocks is powered by wind or solar power plants and is a way to store the energy those plants generate. Software controls the movement of the blocks automatically, responding to changes in power availability across an electric grid to charge and discharge the power that’s being generated.

The development of this technology is the culmination of years of work at Idealab, the Pasadena, Calif.-based startup incubator, and Energy Vault, the company it spun out to commercialize the technology, has just raised $110 million from SoftBank Vision Fund to take its next steps in the world.

Energy storage remains one of the largest obstacles to the large-scale rollout of renewable energy technologies on utility grids, but utilities, development agencies and private companies are investing billions to bring new energy storage capabilities to market as the technology to store energy improves.

The investment in Energy Vault is just one indicator of the massive market that investors see coming as power companies spend billions on renewables and storage. As The Wall Street Journal reported over the weekend, ScottishPower, the U.K.-based utility, is committing to spending $7.2 billion on renewable energy, grid upgrades and storage technologies between 2018 and 2022.

Meanwhile, out in the wilds of Utah, the American subsidiary of Japan’s Mitsubishi Hitachi Power Systems is working on a joint venture that would create the world’s largest clean energy storage facility. That 1 gigawatt storage would go a long way toward providing renewable power to the Western U.S. power grid and is going to be based on compressed air energy storage, large flow batteries, solid oxide fuel cells and renewable hydrogen storage.

“For 20 years, we’ve been reducing carbon emissions of the U.S. power grid using natural gas in combination with renewable power to replace retiring coal-fired power generation. In California and other states in the western United States, which will soon have retired all of their coal-fired power generation, we need the next step in decarbonization. Mixing natural gas and storage, and eventually using 100% renewable storage, is that next step,” said Paul Browning, president and CEO of MHPS Americas.

Energy Vault’s technology could also be used in these kinds of remote locations, according to chief executive Robert Piconi.

Energy Vault’s storage technology certainly isn’t going to be ubiquitous in highly populated areas, but the company’s towers of blocks can work well in remote locations and have a lower cost than chemical storage options, Piconi said.

“What you’re seeing there on some of the battery side is the need in the market for a mobile solution that isn’t tied to topography,” Piconi said. “We obviously aren’t putting these systems in urban areas or the middle of cities.”

For areas that need larger-scale storage that’s a bit more flexible there are storage solutions like Tesla’s new Megapack.

The Megapack comes fully assembled — including battery modules, bi-directional inverters, a thermal management system, an AC breaker and controls — and can store up to 3 megawatt-hours of energy with a 1.5 megawatt inverter capacity.

The Energy Vault storage system is made for much, much larger storage capacity. Each tower can store between 20 and 80 megawatt hours at a cost of 6 cents per kilowatt hour (on a levelized cost basis), according to Piconi.

The first facility that Energy Vault is developing is a 35 megawatt-hour system in Northern Italy, and there are other undisclosed contracts with an undisclosed number of customers on four continents, according to the company.

One place where Piconi sees particular applicability for Energy Vault’s technology is around desalination plants in places like sub-Saharan Africa or desert areas.

Backing Energy Vault’s new storage technology are a clutch of investors, including Neotribe Ventures, Cemex Ventures, Idealab and SoftBank.