#United States #San Diego #Renewable Energy #Arevon #Peregrine

Arevon Secures $258 Million Financing for Peregrine Energy Storage Project

Arevon Energy, Inc., a notable player in the renewable energy landscape, has recently achieved a significant financial milestone by securing a comprehensive financing package amounting to $258 million for its Peregrine Energy Storage Project, located in the Barrio Logan neighborhood of San Diego, California. This project stands as a pivotal component in the broader realm of energy storage solutions, aiming to bolster California's renewable energy resources and enhance grid reliability.

The financing package includes a $179 million debt component, which is designed to integrate seamlessly with preferred equity options and tax credit transfers. The involvement of prominent financial institutions underscores the innovative nature of Arevon’s financing strategies. Santander took on the role of Administrative Agent and Coordinating Lead Arranger, supported by CoBank, ACB. The security aspects were overseen by BNY, while Latham & Watkins acted as legal counsel for Arevon.

Notably, Arevon has established a pattern of success in securing funding for renewable initiatives, with the Peregrine project representing the seventh in a series of projects to reach financial closure within just 15 months, accumulating a total of over $3.2 billion in financing. The Chief Investment Officer of Arevon, Denise Tait, highlighted this achievement, noting that the company has previously managed complex financings that serve to strengthen their renewable energy portfolio.

The capital investment associated with the Peregrine Energy Storage Project is projected to approach $300 million when completed. Expected to come online in the current year, this facility is designed to store up to 400 megawatt-hours of energy, which will be crucial in mitigating risks of brownouts and blackouts, particularly during peak demand periods. In its height of construction, the project is set to create more than 90 full-time equivalent jobs, contributing significantly to local employment.

Arevon’s innovative approach also entails a long-term agreement with Southern California Edison for purchasing the Resource Adequacy capacity generated by Peregrine, thus aiding the state’s commitment to maintaining reliable energy infrastructure. Moreover, the project is projected to raise approximately $28 million in property tax payments throughout its operational lifespan, emphasizing its economic impact on the local community.

A state-of-the-art element of the Peregrine project is its use of Tesla’s Megapack 2 XL, touted as the leading technology in the utility-scale battery storage market. This advanced system ensures higher safety standards and enhanced protection for both the energy facility and its surrounding environment.

The Chief Executive Officer of Arevon, Kevin Smith, reaffirmed the significance of energy storage in reinforcing grid reliability and security while generating cost efficiencies with domestically sourced energy. The financial closure of the Peregrine Energy Storage Project signals a step forward in Arevon’s commitment to fostering clean energy solutions.

As Arevon continues to make strides in renewable energy development, it has recently announced operational advancements in its other projects, including Eland 1 Solar-plus-Storage and the Vikings Solar-plus-Storage Project, which received esteemed recognition as the Renewables Deal of the Year. The company’s active involvement in constructing over 1,400 megawatts of new solar and storage capacity further solidifies its position as a leader in creating sustainable energy solutions in California.

For more information about Arevon Energy, Inc. and its ongoing projects, please visit their website for detailed insights into their innovative approaches and future developments in renewable energy.