Italy-headquartered energy storage solutions provider NHOA Energy has expanded its operating capacity from 111MWh at the end of Q3 2022 to a cumulative 535MWh at the end of the same quarter this year.
The energy storage division of New HOrizons Ahead (NHOA), which also has business lines for e-mobility and electric vehicle (EV) fast charging infrastructure, has contributed the vast majority of the firm’s revenues for the first nine months of 2023.
From a total €194 million (US$205.7 million) revenues recorded across the group, just over €150 million came from NHOA Energy, according to NHOA’s latest trading and operational update. Company leadership said this puts NHOA in line to hit its financial targets of €250-280 million in revenue and EBITDA break-even for the year.
January to September 2022 yielded €95.7 million revenues across the group, and €165.7 million for the full year 2022, putting the current year’s growth at 103% year-on-year.
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Energy storage sales rose 71%, from €88.4 million in Q1-Q3 2022, to €151.1 million in the equivalent period of 2023, including €50.3 million revenues in Q3 of this year.
The energy storage business has also grown under all other metrics reported by the company, although increases in backlog, 12-month order intake and pipeline were more modest than was seen in online capacity and projects under construction.
Online capacity has grown 384% from 111MWh at the end of Q3 2022 to 535MWh at the end of Q3 2023. Projects under construction went from 776MWh at the end of the first nine months of last year, to 1,145MWh, a 48% increase.
Meanwhile the capacity of the company’s pipeline grew 13% to 1,110MWh from 984MWh at the end of Q3 2022, backlog grew 5% from €152 million to €160 million, and 12-month order intake 9%, from €223 to €243 million.
A “more selective” pipeline
The relatively minor growth in pipeline was partly explained as a result of the company becoming “more and more selective” in its definition, according to Giuseppe Artizzu, head of NHOA Energy.
In an earnings call to explain results, Artizzu said that pipeline conversion rate is generally 25-30%, and once converted becomes revenue within about 18 months. While emphasising that he was not offering forward guidance, Artizzu said rough calculations of the pipeline’s value could be made by looking at backlog figures over six months and spreading up to 30% of that sum across the following 18 months.
NHOA did not break out EBITDA figures in its quarterly release, but group CEO Carlalberto Guglielminotti said the company was on track to “grow fast in an EBITDA-positive way”. The company has €433 million consolidated cash and credit lines available, after a €250 million capital raise earlier in the year in which majority shareholder Taiwan Cement Corporation (TCC) subscribed to over 75% of a rights issue.
The numbers mean NHOA is still perhaps in the category of emerging player in the space – Tesla, the first BESS provider to release Q3 results covered by this site shipped 4GWh of energy storage deployments in the three-month period alone – but Artizzu said the rapid growth over the past few months signified that NHOA Energy has “passed a test of fire” in getting to its half gigawatt-hour by the end of this year.
Recent projects by the company covered by Energy-Storage.news include a 39MWh system set to enter Italy’s capacity market via a contract with transmission operator Terna, a 31MWh project in Peru, pictured above, for NHOA’s former owner Engie and a 107MWh project in China for current owner TCC.
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