Energy Vault Begins Construction of the Largest Green Hydrogen Long Duration Energy Storage System in the U.S.
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Insights
From an energy market perspective, the construction of Energy Vault's BH-ESS project marks a pivotal development in the utility-scale energy storage domain. The integration of green hydrogen with battery storage represents an innovative approach to enhancing grid resilience, especially in regions prone to natural disasters, such as wildfires in California. The project's capacity to deliver 293 MWh of carbon-free energy is significant, as it not only contributes to the decarbonization of the energy grid but also demonstrates the scalability of such technologies.
The long-term tolling agreement with PG&E indicates a stable revenue stream for Energy Vault, which is crucial for investor confidence. The company's use of its proprietary VaultOS™ Energy Management System suggests a competitive edge in operational efficiency and system optimization. Moreover, the project aligns with California's aggressive renewable energy goals and PG&E's commitment to a net zero energy system by 2040, potentially setting a precedent for future utility-scale storage solutions.
From an environmental and policy standpoint, the approval of Energy Vault's BH-ESS by the California Public Utilities Commission (CPUC) in April 2023 is a testament to the state's proactive stance on adopting cleaner energy technologies. The project's ability to replace traditional mobile diesel generators during Public Safety Power Shutoffs (PSPS) events with a zero-emission alternative is a significant environmental benefit, reducing greenhouse gas emissions and local air pollution.
The CPUC's vision for cleaner microgrid generation is clearly reflected in this project, which could serve as a blueprint for other states looking to enhance their energy infrastructure with sustainable and resilient solutions. The community-scale microgrid development aspect of this project also emphasizes the importance of localized energy solutions in achieving broader decarbonization targets, potentially influencing future regulatory frameworks and environmental policies.
From a technological standpoint, the Calistoga Resiliency Center's hybrid system, coupling lithium-ion batteries with hydrogen fuel cells, represents a significant advancement in the field of energy storage. The combination of ultra-long duration capabilities of fuel cells with the rapid response of lithium-ion batteries addresses a critical challenge in energy storage: balancing the need for immediate power delivery with the requirement for sustained energy supply during extended outages.
This project showcases the potential of H-VAULT™ configurations to provide reliable backup power and maintain grid stability during transmission outages. The integration of these technologies within a microgrid also highlights the growing trend towards distributed generation, which is increasingly recognized as a key component in the transition to a more resilient and sustainable energy system.
Hybrid Green Hydrogen plus Battery energy storage system will be capable of powering approximately 2,000 electric customers within PG&E’s
Project supported by a 10.5-year tolling agreement; Commercial operation expected by the end of Q2 2024, solidifying Energy Vault’s global leadership role in green hydrogen and gravity-based technologies for long duration energy storage
Rendering of the Calistoga Resiliency Center, a first-of-a-kind hybrid energy storage system coupling lithium-ion batteries with hydrogen fuel cells. (Photo: Business Wire)
Construction of the BH-ESS, which is being developed for Pacific Gas and Electric Company (PG&E) on less than one acre of land in the
Energy Vault’s BH-ESS will replace the traditional mobile diesel generators currently used to energize PG&E’s
“The timely start of construction is an important milestone in our partnership with PG&E to deliver this first of its kind microgrid solution. We greatly look forward to not only its delivery but most importantly to the sustainability benefits it will bring to the
“Deploying cost-effective, next-generation energy supply and long-term storage technologies is essential to ensuring grid reliability and to achieving PG&E’s goal of a net zero energy system by 2040,” said Mike Delaney, Vice President, Utility Partnerships and Innovation. “PG&E is developing a portfolio of promising new forms of electricity generation and storage technologies, and identifying the right applications that will support the further proliferation of these technologies at the lowest capital cost and highest-impact locations.”
The energy storage system will be owned, operated and maintained by Energy Vault while providing dispatchable power under a long-term tolling agreement with PG&E. The Company will leverage its VaultOS™ Energy Management System to control, manage and optimize the BH-ESS operations. The system has been developed under the umbrella of Energy Vault’s H-VAULT™ suite of hybrid configurations leveraging green hydrogen and batteries, to ensure continuity and resilience during PSPS events. By coupling the ultra-long duration capabilities of fuel cells using green hydrogen, and the fast response capabilities of B-VAULT™️ lithium-ion batteries, H-VAULT™ provides the clean, reliable, cost-effective back-up power that is critical to enable islanded microgrids during transmission outages.
Under the 10.5-year agreement, Energy Vault will provide “Distributed Generation-Enabled Microgrid Services” – a type of energy service that involves using grid-forming generation and storage resources, to provide energy, fault current contribution and to regulate voltage and frequency within the utility’s established parameters to enable the islanding of the
About Energy Vault
Energy Vault® develops and deploys utility-scale energy storage solutions designed to transform the world's approach to sustainable energy storage. The Company's comprehensive offerings include proprietary gravity-based storage, battery storage, and green hydrogen energy storage technologies. Each storage solution is supported by the Company’s hardware technology-agnostic energy management system software and integration platform. Unique to the industry, Energy Vault’s innovative technology portfolio delivers customized short-and-long-duration energy storage solutions to help utilities, independent power producers, and large industrial energy users significantly reduce levelized energy costs while maintaining power reliability. Utilizing eco-friendly materials with the ability to integrate waste materials for beneficial reuse, Energy Vault’s EVx™ gravity-based energy storage technology is facilitating the shift to a circular economy while accelerating the global clean energy transition for its customers. Please visit www.energyvault.com for more information.
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Source: Energy Vault Holdings, Inc.
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