Arevon Energy has announced the completion of a $258m financing package for its Peregrine energy storage project in San Diego, California.
The Peregrine project, a 200MW/400 megawatt hours (MWh) energy storage facility, is Arevon’s seventh project to reach financial close since December 2023, with total financings exceeding $3.2bn.
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The Peregrine financing includes a $179m debt package, which will transition to a preferred equity and tax credit transfer takeout.
Santander served as the administrative agent and co-ordinating lead arranger, with CoBank, ACB and BNY as the security agent.
Latham & Watkins acted as borrower counsel for Arevon while Norton Rose Fulbright acted as the lender counsel.
Acadia Infrastructure Capital structured and sourced a $79m preferred equity commitment for the project, facilitating the initial mechanical completion funding.
Amis, Patel & Brewer advised Acadia and its Class A equity partner, while Latham & Watkins and CRC-IB supported Arevon as sponsor counsel and sole financial advisor respectively.
In addition to the bridge financing, Arevon secured a land financing facility with HASI, allowing long-term ownership of both the project and its site.
Arevon chief investment officer Denise Tait stated: “Peregrine builds upon the complex financings Arevon has closed in the last year, including Ratts 1 Solar and Heirloom Solar, which were the company’s first uncommitted tax equity and tax credit bridge transactions, and Condor Energy Storage, which was Arevon’s first executed deal to utilise a preferred equity investment with 100 percent of the tax credits transferred to two buyers.
“We value our partners who trust in our innovative structures and support our continued efforts to develop more clean energy in California.”
The Peregrine energy storage project, developed and operated by Arevon, represents a $300m capital investment and is expected to become operational in 2025.
The project will enhance grid stability by storing electricity for use during peak demand or outages, reducing the risk of brownouts [restriction of available power] and blackouts.
Peregrine will utilise Tesla’s Megapack 2 XL, a utility-scale battery energy storage system known for its advanced technology and safety features.
At peak construction activity, the project will employ 90 full-time equivalent personnel. It will pay more than $28m in property taxes over its lifespan, powering up to 200,000 homes during peak demand.
Southern California Edison will purchase Peregrine’s resource adequacy capacity under a long-term agreement to support California’s reliability needs.
Rosendin and EPC Services are the project’s engineering, procurement and construction contractors.
Arevon CEO Kevin Smith stated: “The advancement of our energy infrastructure relies on energy storage and its ability to strengthen grid reliability and energy security while lowering electricity costs with American-made generation sources.
“Arevon is pleased to announce Peregrine Energy Storage’s financial close, which adds to Arevon’s banner year of completed transactions in 2024, and we remain grateful for the continued collaboration and like-minded commitments from our financial partners.”
