Arevon Secures $920 Million Package, Including Major Debt And Preferred Equity, To Advance The Nighthawk Battery Storage Facility

Arevon Energy, Inc., a major U.S. developer and operator of renewable energy assets, has announced the successful closing of a $920 million financing package for its Nighthawk Energy Storage Project. This utility-scale battery project has a capacity of 300 megawatts (MW) and 1,200 megawatt-hours (MWh) and is currently being built in Poway, California.

The financing package brings together several components. The first is a $482 million debt facility arranged by CIBC as the Left Lead Arranger, with support from ING Capital LLC, NORD/LB, Santander, and Zions Bancorporation. In addition, Arevon secured a $169 million preferred equity investment from Goldman Sachs Alternatives, which helps streamline the process of using tax credits.

The final component is a $268 million tax credit transfer commitment from a corporate buyer. Arevon received legal support from Latham & Watkins and Sheppard. The lenders were advised by Norton Rose Fulbright and Allen Matkins. Milbank LLP and Allen Matkins represented Goldman Sachs, while CG/CRC-IB acted as tax equity advisor to Arevon.

CIBC expressed strong support for the project, noting its central role in structuring the debt facility. Emma Raine, Executive Director of Project Finance at CIBC, emphasized that working with Arevon reinforces the bank’s commitment to advancing renewable energy across the United States. She highlighted the importance of innovative financing structures for enabling sustainable economic growth.

Goldman Sachs Alternatives also commented on its involvement. Vikas Agrawal, Managing Director and Co-Head of Energy Transition Climate Credit, explained that the preferred equity investment aligns with the group’s goal of providing flexible financing to speed up the development of essential infrastructure. He noted that energy storage plays a critical role in improving grid reliability and supporting the broader clean energy transition.

Arevon’s Chief Investment Officer, Denise Tait, emphasized the importance of combining multiple financial tools—debt, preferred equity, and transferability structures—to secure funding for large storage projects. She explained that this transaction shows how creative financial solutions can support long-term investment, even when policies and markets are shifting. According to her, the strong partnerships behind the deal reflect Arevon’s focus on creating long-term value.

Once completed, Arevon will own and operate the Nighthawk Energy Storage Project. Over its lifespan, the facility is expected to generate more than $30 million in property tax revenue, which will support schools, public services, and infrastructure improvements in the region. During its construction peak, the project employed more than 130 workers and contributed to the local economy by driving business to restaurants, hotels, and retail stores.

Arevon also worked closely with the City of Poway throughout the development process, noting that city officials played a key role in its progress. When it becomes operational later this year, the facility will be able to supply enough stored energy to power 385,000 homes for up to four hours during peak demand.

The Nighthawk project relies on lithium iron phosphate battery technology, selected for its safety, efficiency, and reliability. The system will improve grid stability in the San Diego area by storing electricity when demand is low and delivering energy when usage rises. Under a long-term agreement, the project will provide resource adequacy capacity to Pacific Gas and Electric Company (PG&E), supporting California’s broader goals for clean energy and grid dependability.

Arevon continues to be a major force in renewable energy development across the United States, especially in California. The company operates more than 3.7 gigawatts of renewable energy projects nationwide, representing over $5 billion in capital investments. It has also recently announced milestones at several other California sites, including the launch of operations at the Peregrine Energy Storage Project, the Eland 1 Solar-plus-Storage Project, the Vikings Solar-plus-Storage Project, and the Condor Energy Storage Project.

The company has also secured offtake agreements for the Cormorant and Avocet Energy Storage Projects. Its projects have earned notable industry recognition as well, with the Condor project receiving Proximo’s North America Storage Deal of the Year and the Vikings Solar-plus-Storage Project winning IJGlobal’s Renewables Deal of the Year – Energy Storage Award and Proximo’s North America Solar Deal of the Year.