Gravity-based energy storage developer Energy Vault has started construction on its first commercial-scale project.

The 100 MWh energy storage system is being built near a wind farm in Rudong, Jiangsu Province outside of Shanghai.

The project aims to support China's goal of reaching a carbon peak in 2030 and carbon neutrality by 2060. Energy Vault noted that the project in Rudong was fast-tracked with preliminary approval issued by several Chinese agencies on March 12.

Energy Vault signed a $50 million licensing agreement with Houston-based Atlas Renewable for use of its technology and energy management software suite in China.

Energy Vault's gravity-based energy storage system works like a pumped hydroelectric energy storage system.

Instead of using water, composite 30-ton blocks are raised using clean energy to create potential energy that can later be utilized by lowering the blocks to create kinetic energy.

Energy Vault says its technology can provide energy storage durations of 2 to 12 hours.

Last year, Energy Vault was valued at $1.1 billion after it merged with Norvus Capital Corp. II, a special purpose acquisition company.