US-based energy storage company Energy Vault Holdings has completed the acquisition of an 850MW battery energy storage system (BESS) development portfolio in Japan from German renewable energy developer BayWa r.e. AG, establishing a direct operating platform in one of the world's largest energy storage markets.

As reported by Sustainability Online, the portfolio comprises 350MW of advanced-stage projects expected to receive notice to proceed in the second half of 2027, with commercial operations targeted from mid-2028, alongside 500MW of early-stage developments intended to support longer-term growth. The transaction brings Energy Vault's global owned asset portfolio for near-term projects to 1.1GW, with the pipeline expected to generate more than $180 million in annual recurring EBITDA as projects come online.

Robert Piconi, chairman and chief executive of Energy Vault, said: "This acquisition marks a significant step in Energy Vault's global growth strategy and establishes our direct operating platform in one of the world's most compelling energy storage markets. Japan's need for flexible, reliable storage is accelerating, and Energy Vault is well positioned to deliver projects at scale while creating long-term, predictable value for our shareholders."

The Japanese projects are expected to use three-hour duration battery systems, which typically generate higher EBITDA per MW than the shorter-duration storage assets more common in other markets, a structural advantage that improves the financial profile of the portfolio.

The deal also provides Energy Vault with an immediate in-country platform incorporating BayWa r.e.'s expertise in land rights, regulatory permitting, and utility interconnections, capabilities critical to navigating Japan's complex energy storage regulatory environment.

Dive into the full details of Energy Vault's Japanese BESS acquisition and global storage strategy in the complete article.