Energy Vault has closed project financing and completed a 10-year offtake agreement for a $18 million battery energy storage system (BESS) installation in Texas. The Cross Trails project, a 57-MW/114-MWh BESS, entered full commercial operation in June. It has a decade-long offtake deal with power marketer Gridmatic and expects to receive over $12 million in federal investment tax credit-related funds.

The Cross Trails BESS in Texas is providing energy and ancillary services to support renewable energy production and improve grid resiliency in the ERCOT region. It is the first physically settled revenue floor contract for a BESS in ERCOT. The system is equipped with Energy Vault’s VaultOS Energy Management System to control, manage, and optimize the BESS operations.

Energy Vault’s Cross Trails BESS project represents a significant milestone in executing the ‘Own & Operate’ strategy, delivering strong returns and generating predictable, high-margin recurring revenue streams. The company has a robust pipeline of projects in development within this strategy and aims to create sustainable, long-term shareholder value through strategic energy storage asset ownership and operation in key growth markets.

Gridmatic’s CEO praised Energy Vault’s proven expertise in developing and deploying reliable, cost-effective energy storage solutions. The partnership aims to deliver increased grid reliability and affordability for Texas residents as load growth continues to accelerate. Energy Vault has a strong pipeline of projects in development and a long-term vision to generate predictable, recurring, high-margin tolling revenue streams for shareholders.

Read more at Yahoo Finance: Energy Storage Group Closes Financing for Texas BESS Project