Novel Energy Storage Solution Gets World Recognition

“It is gravity that shapes the large scale structure of the universe…”

Stephen Hawking

 

It is a novel idea:  using gravity to store energy.  For large-scale energy producers it could be a welcome solution to a large-scale problem.  At least that is the view of Energy Vault AB, an energy storage developer based in Switzerland.  The company has won some converts to its gravity idea.  In June 2020, the company was name one of the World Economic Forum’s Technology Pioneers of 2020.  

The company was the focus of an earlier post in November 2018, entitled “Forget Batteries, Store Energy in Concrete Blocks.”  Energy Vault’s tower-mounted crane and pulley system makes it possible to store energy created by intermittent solar or wind generators.  Later when winds have died down and the sun has long set, the energy is released by allowing the reverse action by pulleys.  The system is very like pumped hydro but replaces water with concrete blocks.  A prototype is set up in Arbedo-Castione, Switzerland next to a wind farm.

If Energy Vault’s engineers have any trouble in gaining the interest of new customers, it has some good points in its favor.  Plain old physics is at the core of Energy Vault’s system and there is no reliance on any unproven technology.  Furthermore, the materials to build the system are low-cost and readily available. 

Unfortunately, so very much material is needed to complete the thirty-plus stories of Energy Vault’s tower.  The company has cited $7 million to $8 million for a typical installation.  High capital costs means adoption of this novel energy storage solution is not guaranteed.  Energy Vault has to count on low operating costs and a long expected operating life to deliver significantly lower levelized cost of storage (LCOS) than batteries.

Last year Energy Vault was able to gain a strong ally in Softbank Vision Fund, which invested $110 million in the company in a Series B funding round.  There had not been a lot of news from Energy Vault since until the World Economic Forum stepped forward with welcome publicity.  The Forum’s selection processes apparently emphasized cost-effective solutions for governments and commercial enterprises to ‘build back better’ in the recovery from the coronavirus pandemic.

Investors are well served to keep an eye out for Energy Vault and other innovators that can offer alternatives to the battery storage solution.  The story of the exotic metal alloys and unique chemistry in batteries may be sexy, but gravity is what shapes the universe.

 

 

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.