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Gravity-based energy storage solutions provider Energy Vault has announced the financial results for the first half (1H) and second quarter (Q2) of the calendar year (CY) 2022.
The Switzerland-based company reported revenue of $43.9 million in 1H 2022, compared to no revenue during the same period last year. The revenue was driven by a portion of the $50 million licensing and royalty agreement with Atlas Renewable received in the first quarter of 2022.
In February this year, Energy Vault announced a license and royalty agreement for renewable energy storage with Atlas Renewable and its majority investor China Tianying, international environmental management and waste remediation corporation engaged in smart urban environmental services, resource recycling, and zero-carbon clean energy technologies.
The company reported a net loss of $26.26 million in 1H 2022, an increase of 111% compared to a loss of $12.43 million during the same period last year.
The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 1H 2022 stood at $17.03 million, an increase of 263% compared to a loss of $10.41 million in 1H 2021.
In 1H 2022, the research and development expenses increased by $16.2 million to $19.4 million for the six months ended June 30, 2022, increasing by 506% compared to $3.2 million for the six months ended June 30, 2021.
The revenue for the three months ended June 30, 2022, was $1 million compared to no revenue for Q2 2021. Revenue for the three months ended June 30, 2022, was entirely from one customer, which related to Energy Vault’s intellectual property licensing agreement with Atlas.
The revenue for Q2 2022 of $1 million consisted of $400,000 in revenue from the amortization of deferred revenue related to Energy Vault’s obligation to provide Atlas construction support services and $600,000 in cost reimbursements related to providing construction support services to Atlas.
The company reported a net loss of $6.2 million in Q2 2022, a decrease of 137% compared to a profit of $16.57 million during the same period last year.
For Q2 2022, the adjusted EBITDA stood at a loss of $14.21 million, up 90% compared to a loss of $7.47 million in Q2 2021.
Research and development expenses increased by $7.6 million to $9.8 million, compared to $2.2 million in Q2 2021, increasing by 345%. The increase resulted primarily from a $4.2 million increase in personnel-related expenses, a $1.1 million increase in depreciation expense, a $1.1 million increase in engineering and development costs, and an $800,000 increase in software costs.
Energy Vault has been awarded a project to deploy a 68.8 MW (275 MWh) battery energy storage system at Wellhead’s Energy Reliability Center in Stanton, California, to provide enhanced resources and improved grid reliability in the Southern California Edison territory. The Stanton ESS will be one of Southern California’s largest energy storage systems.
Recently, Energy Vault announced that it had been awarded a 440 MWh battery energy storage system project with a large western U.S. public utility with commercial operation expected in the second half of 2023.
In April this year, NTPC announced the signing of a memorandum of understanding with Energy Vault to collaborate and formalize a long-term strategic partnership to deploy Energy Vault’s EVx gravity-based energy storage technology and software solutions based on the outcome of a joint feasibility study. The technology also offers beneficial coal ash utilization for manufacturing composite blocks for Energy Vault’s gravity-based energy storage system.
Arjun Joshi is a staff reporter at Mercom India. Before joining Mercom, he worked as a technical writer for enterprise resource software companies based in India and abroad. He holds a bachelor’s degree in Journalism, Psychology, and Optional English from Garden City University, Bangalore. More articles from Arjun Joshi.