Blackstone Backs $350M California Energy Storage Project
Arevon Energy Inc., a renewable energy company, has secured $350 million, with the backing of Blackstone Credit & Insurance, a unit of U.S. investment giant Blackstone Inc, to advance a 200-MW/800-MWh energy storage project in Grand Terrace, CA.
The funds were secured in a combination of preferred equity, debt and investment tax credits (ITCs) financing.
Arevon has secured a financial close for the Condor Energy Storage Project, which is scheduled to begin operations in the second quarter of 2024. According to the firm, the facility is under contract with Southern California Edison for 15 years.
“Arevon is a world-class renewable energy company, and we are excited to be their partner on the Condor financing. Blackstone continues to see tremendous need for large scale financing solutions in the energy transition market, and we look forward to partnering with Arevon on future opportunities,” said Zachary Rubenstein, managing director in the Blackstone Credit & Insurance Sustainable Resources Group.
The financing includes a commitment by Stifel Financial Corp to purchase ITCs and is backed by a $164-million lending arrangement secured by a group of lenders. Arevon has acquired real estate funding from climate investment firm HASI for the Condor Energy Storage Project land.
Scottsdale, AZ-based Arevon owns and operates more than 3.5 GW of solar, storage and solar-plus-storage hybrid assets across the U.S. The company has more than 1.9 GW of renewable assets in operation and more than 1 GW under construction in California.
