Energy Vault will focus on maximizing U.S. localization and deployment of energy storage equipment that will qualify for the Inflation Reduction Act’s Domestic Content Bonus Credit.
Jupiter Power and Energy Vault announced a plan to source domestic equipment—one of many such moves following the passage of the Inflation Reduction Act (IRA), which offers an additional credit for domestically sources materials. Jupiter Power LLC is a U.S.-based developer and operator of utility-scale, battery energy storage systems (BESS). Energy Vault Holdings is a specialist in sustainable, grid-scale energy storage solutions.
“Due to our team’s hard work developing new energy storage projects from California to Maine over the last several years, Jupiter is uniquely positioned to lead now in making the Inflation Reduction Act’s vision of large-scale domestic battery systems manufacturing jobs a reality,” said Andy Bowman, Jupiter Power’s CEO. “We are very pleased to be expanding our relationship with Energy Vault to grow our supply of the equipment the grid critically needs today while also supporting sustainable battery equipment manufacturing here at home.”
The companies plan to collaborate on securing 2.4 GWh of supply chain equipment and services that will be integrated and delivered through Energy Vault’s hardware and software management platform in Jupiter Power’s battery energy storage projects in U.S. electric markets including ERCOT, MISO, CAISO, PJM, NYISO, and ISO-NE. The projects are expected to reach commercial operations in 2024 and 2025.
Under the agreement, Energy Vault will focus on maximizing U.S. localization and deployment of energy storage equipment that will qualify for Domestic Content Bonus Credit. The plan is for Jupiter Power to collaborate in siting new domestic manufacturing facilities, where possible, by using assets secured for future Jupiter Power projects across the country. Again, motivated by bonus credit from the IRA, at least some of the facilities will be in “Energy Communities”, such as brownfield sites, former coal sites and economically disadvantaged areas.
“We are excited to continue our strategic relationship with Jupiter Power, which enables us to leverage our technology platform while maximizing U.S. content for near-term deployments in critical energy storage projects,” said Marco Terruzzin, chief commercial officer, Energy Vault. “Energy Vault is laser focused on its customers’ needs with a commitment to continuous innovation, allowing this agreement to serve as a gateway for realizing the intent of the Inflation Reduction Act in rapidly bringing energy storage localization to the U.S.”
The letter of intent agreement follows previously announced agreements between Jupiter Power and Energy Vault for BESS projects in Texas and California totaling 220 MWh, under which Energy Vault will supply a 100 MW (200 MWh) battery energy storage system at a Jupiter Power Facility near Fort Stockton, Texas, and additionally construct and commission.
