Arevon secures $920m for Nighthawk storage project in US

Core Insights - Arevon Energy has secured $920 million in financing for its Nighthawk Energy Storage Project, a 300MW/1.2 GWh facility in Poway, California, expected to be operational later this year [1][2] - The project will provide resource adequacy capacity to Pacific Gas and Electric Company (PG&E) under a long-term contract, capable of supplying electricity for up to 385,000 homes for four hours during peak demand [1][2] Financing Details - The financing package includes a $482 million debt facility arranged by CIBC, with participation from ING Capital, NORD/LB, Santander, and Zions Bancorporation [2] - Arevon has also secured a $169 million preferred equity investment from Goldman Sachs Alternatives and a $268 million tax credit transfer commitment from an undisclosed corporate purchaser [2] Economic Impact - Over its lifespan, the project is projected to generate more than $30 million in property tax payments, benefiting local schools, infrastructure projects, and public services [3] - During peak construction, over 130 workers were employed on-site, leading to increased activity for local businesses [3] Technology and Alignment - The battery system utilizes lithium iron phosphate technology, designed to enhance grid reliability by charging during low demand and discharging during high usage periods in the San Diego region [4] - The project aligns with California's goals for grid reliability and clean energy [4] Strategic Insights - Arevon's chief investment officer highlighted that this transaction showcases innovative capital solutions that can unlock long-term investments in critical grid infrastructure [5] - Over the past two years, Arevon has closed $5.1 billion in project financing, indicating strong financial partnerships and a commitment to delivering long-term value [5]