Arevon Energy, Inc. has closed a $920 million financing package for its 300MW/1,200MWh Nighthawk Energy Storage Project currently under construction in Poway, California.
The financing includes a $482 million debt facility arranged by CIBC as Left Lead Arranger with ING Capital, NORD/LB, Santander and Zions Bancorporation; a $169 million preferred equity investment from Goldman Sachs Alternatives; and a $268 million tax credit transfer commitment with a corporate purchaser.
Emma Raine, Executive Director, Project Finance at CIBC, said: “CIBC is thrilled to have supported Arevon as Left Lead Arranger, Administrative Agent, Coordinating Lead Arranger, and Bookrunner on a unique financing structure for the Nighthawk Energy Storage Project. Partnering with leading renewable energy platforms like Arevon underscores CIBC’s ongoing commitment to the U.S. renewable energy sector, as we work toward enabling a more sustainable economy.”
Vikas Agrawal, Managing Director and Co-Head of Energy Transition Climate Credit at Goldman Sachs Alternatives, said: “We are pleased to support Arevon’s Nighthawk Energy Storage Project through our Climate Credit strategy. This preferred equity investment reflects our commitment to providing flexible, tailored financing solutions that help accelerate the deployment of critical infrastructure. Energy storage is essential to grid reliability and the energy transition.”
Denise Tait, Chief Investment Officer at Arevon, added: “Strategically aligning debt, preferred equity, and transferability structures is essential to financing energy storage projects at this scale and profile. This transaction demonstrates how innovative capital solutions can unlock long-term investment in critical grid infrastructure.”
Arevon will own and operate the Nighthawk Energy Storage Project, which is expected to generate more than $30 million in property tax payments over its lifetime and support local schools, infrastructure and public services. At peak construction, the project employed over 130 workers and contributed to the local economy.
Once operational later this year, the facility will be capable of powering around 385,000 homes for up to four hours during peak demand. The project uses lithium iron phosphate battery technology and will provide resource adequacy capacity to Pacific Gas and Electric Company (PG&E) under a long-term agreement, helping strengthen grid reliability in California.
