NRGV - Keep Energy Vault On Your Radar Despite Big Revenue Drop In 2024
2024-06-19 11:41:41 ET
Summary
- Energy Vault Inc. deployed the world's first grid-scale gravity energy storage system in China, partnering with various companies and government agencies.
- Despite a significant drop in stock price, Energy Vault's long-term outlook is positive, with revenue growth expected in 2024-2025 and a strong backlog of projects.
- Energy Vault's GESS system, using composite blocks for energy storage, shows promise with cost-effective solutions and potential for significant growth in the future.
Last year, I took notice after energy storage solutions developer Energy Vault Inc. ( NRGV ) successfully commissioned the world’s first grid-scale gravity energy storage system (GESS) that does not use water in China. The 25MW/100MWh EVx GESS is located outside of Shanghai in Rudong, Jiangsu Province, sited adjacent to a wind farm and a national grid interconnection site with a view to balancing the country’s national energy grid through long-duration renewable energy storage. The deployment–the first for Energy Vault’s G-VAULT segment–is coordinated in partnership with tech investment company Atlas Renewable Energy, environmental services firm China Tianying ( CNTY ), alongside EIPC (a policy oriented NGO of the Investment Association of China) and select provincial and local governments. I thought that milestone would prove to be a turning point for a stock that has been in free fall ever since it went public in February 2022 in a deal with a special purpose acquisition company (SPAC). Unfortunately, the shares have continued to tumble, with the ticker in grave danger of being booted off the New York Stock Exchange after shares crashed -54.5% in the year-to-date to $1.06 at the time of writing from an all-time high of $21.60 in April 2022. This is a precarious point in Energy Vault’s short public life because the share price tailspin towards the $1-a-share danger zone is only encouraging a vicious cycle of more selling. Consider that investors are motivated to sell because shareholders holding shares after a delisting are only able to sell them OTC, meaning less liquidity, wide bid-ask spreads and potentially being left in the dark about the inner workings of a company. Maybe a reverse stock split is in order at this juncture to buy the company some time for a turnaround. In my view, Energy Vault’s G-VAULT segment is very promising, and this company needs some time to gain proper traction....
Keep Energy Vault On Your Radar Despite Big Revenue Drop In 2024