Arevon Closes $920 Million in Financing for its 1,200 Megawatt-Hour Nighthawk Energy Storage Project in California
MWN-AI** Summary
Arevon Energy, Inc., a prominent renewable energy developer based in Scottsdale, Arizona, has announced the successful closure of a substantial $920 million financing package for its Nighthawk Energy Storage Project in Poway, California. This project, boasting 300 megawatts (MW) and 1,200 megawatt-hours (MWh) of energy storage capacity, is Arevon's largest standalone energy storage initiative to date.
The financing is comprised of multiple components: a $482 million debt facility led by CIBC, alongside contributions from ING Capital LLC, NORD/LB, Santander, and Zions Bancorporation; a $169 million preferred equity investment facilitated by Goldman Sachs Alternatives; and a $268 million tax credit transfer commitment with a corporate buyer. These financial arrangements underscore Arevon's strategic focus on innovative capital solutions to enhance long-term investment in energy infrastructure.
The Nighthawk project aims to bolster grid reliability in the San Diego region by utilizing lithium iron phosphate battery technology, which allows for safe and efficient energy storage. Once operational, expected this year, it will provide electricity to approximately 385,000 households during peak demand. The project promises significant socio-economic benefits, projecting over $30 million in property tax payments to support local infrastructure and services.
Arevon's successful financing activity reflects its robust growth strategy, having completed $5.1 billion in project financings over the last two years. The company has made significant strides in renewable energy, with over 3.7 gigawatts of operational capacity and ongoing projects aimed at supporting California's clean energy goals. Through strategic partnerships and a commitment to sustainability, Arevon aims to solidify its position as a leader in the U.S. energy sector.
MWN-AI** Analysis
Arevon Energy's recent announcement of closing a $920 million financing package for its Nighthawk Energy Storage Project is a significant development in the renewable energy sector, particularly for investors looking at clean energy infrastructure. The project's total design capacity of 1,200 MWh positions it as a critical component in supporting California's renewable energy goals and enhancing grid reliability.
This financing includes a diversified structure comprising debt, preferred equity, and tax credit commitments. The participation of major financial institutions such as Goldman Sachs and CIBC showcases confidence in Arevon's business model and the project's viability. Investors should note that Arevon has successfully closed over $5.1 billion in financings over the past two years, indicating robust backing and a strategic approach to capital sourcing.
For potential investors interested in the clean energy space, Arevon presents a compelling case, not only due to its track record but also due to the increasing demand for energy storage solutions. With energy storage projected to play a critical role in balancing supply and demand, especially in peak usage scenarios, the Nighthawk project is positioned to generate significant economic and environmental returns.
Furthermore, Arevon's focus on lithium iron phosphate technology in the Nighthawk project reflects a commitment to safety, efficiency, and sustainability. This technology aligns well with current trends favoring advanced battery solutions, making it a beneficial long-term investment as the market pivots towards more secure and efficient energy systems.
In summary, Arevon's strategic financing and operational framework position the Nighthawk Energy Storage Project as an attractive opportunity for investors looking to engage in the renewable energy sector. With the potential for stable returns and significant social impact, this venture could be a strong addition to an investment portfolio focused on sustainability and growth.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
The financing package includes a debt facility, preferred equity investment, and tax credit transfer commitment for Arevon's largest standalone energy storage project and contributes to the company's $5.1 billion in project financings closed in the last two years
SCOTTSDALE, Ariz. and POWAY, Calif., March 11, 2026 /PRNewswire/ -- Arevon Energy, Inc., a leading American energy developer, owner, and operator, today announced it has successfully closed a $920 million financing package for its 300 megawatt (MW)/1,200 megawatt-hour (MWh) Nighthawk Energy Storage Project, currently under construction in Poway, California.
The financing package includes a $482 million debt facility arranged by CIBC as Left Lead Arranger, alongside ING Capital LLC, NORD/LB, Santander, and Zions Bancorporation; a $169 million preferred equity investment structured to simplify the monetization of tax credits with Goldman Sachs Alternatives; and a $268 million tax credit transfer commitment with a corporate purchaser. Arevon was represented by Latham & Watkins and Sheppard. Norton Rose Fulbright and Allen Matkins served as Counsel to the lenders. Milbank LLP and Allen Matkins acted as Counsel to Goldman Sachs, and CG/CRC-IB served as Arevon's tax equity advisor.
"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," said Emma Raine, Executive Director, Project Finance at CIBC. "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."
"We are pleased to support Arevon's Nighthawk Energy Storage Project through our Climate Credit strategy," said Vikas Agrawal, Managing Director, and Co-Head of Energy Transition Climate Credit at Goldman Sachs Alternatives. "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. Goldman Sach's long history financing Arevon and Arevon's track record as a leading developer and operator makes them an ideal partner. The Nighthawk project exemplifies the type of large-scale, high-impact investment opportunity that our strategy was designed to support, and we look forward to continuing to deploy capital and offering bespoke financing solutions that deliver both strong risk-adjusted returns and meaningful environmental benefits."
"Strategically aligning debt, preferred equity, and transferability structures is essential to financing energy storage projects at this scale and profile," said Denise Tait, Chief Investment Officer at Arevon. "This transaction demonstrates how innovative capital solutions can unlock long-term investment in critical grid infrastructure, even amid evolving market and policy conditions. It reflects the strength of our financial partnerships and Arevon's commitment to delivering durable, long-term value."
Arevon will own and operate Nighthawk Energy Storage, which, over its lifespan, is expected to deliver more than $30 million in property tax payments, supporting schools, infrastructure improvements, and public services. During peak construction, Nighthawk employed more than 130 workers and generated meaningful economic activity across the region, benefiting local restaurants, hotels, and retail businesses while strengthening the local economy. The project team worked closely with officials from the City of Poway, who have been instrumental in its success. When operational, which is expected this year, the project will be capable of powering 385,000 homes for up to four hours during peak demand periods.
The Nighthawk Energy Storage Project utilizes lithium iron phosphate battery technology designed to provide safe, efficient, and flexible storage capabilities. It will strengthen grid reliability in the San Diego region by storing electricity during periods of lower demand and dispatching energy during peak usage hours. Under a long-term agreement, Nighthawk will provide resource adequacy capacity to Pacific Gas and Electric Company (PG&E), supporting California's reliability and clean energy goals.
Arevon is a nationwide renewable energy developer and a leader in California with more than 3.7 gigawatts in operation, representing more than $5 billion in capital investments. The company has issued other announcements celebrating achievements at several of its other California projects, including the start of operations at its Peregrine Energy Storage Project, its Eland 1 Solar-plus-Storage Project, its Vikings Solar-plus-Storage Project, and its Condor Energy Storage Project. Arevon also executed offtake agreements for its Cormorant Energy Storage Project and its Avocet Energy Storage Project. Condor Energy Storage received Proximo's North America Storage Deal of the Year Award, and Vikings Solar-plus-Storage was the recipient of IJGlobal's Renewables Deal of the Year – Energy Storage Award and Proximo's North America Solar Deal of the Year Award.
About Arevon
Arevon is a U.S. energy leader committed to powering America with affordable, reliable, and secure homegrown energy. Headquartered in Scottsdale, Arizona, and with a regional office in New York City, the company's experienced and dedicated team develops, finances, builds, owns, and operates renewable energy projects nationwide. With a strong track record in utility-scale solar and energy storage, Arevon is a trusted partner to utilities and businesses seeking cost-effective, sustainable energy solutions. By prioritizing American manufacturing and domestic energy production, the company invests in U.S. jobs, strengthens local economies, and advances the country's energy independence.
Arevon owns and operates more than 6 gigawatts (GW) of solar and energy storage projects across 18 states, representing more than $11 billion in capital investment, and is currently constructing more than 600 megawatts (MW) of new capacity. The company also partnered with local utilities to develop and build 480 MW of solar energy, ensuring each project was successfully integrated into their communities. In the last two years, Arevon has completed $5.1 billion in project financings and closed on a $600 million corporate revolver to fund continued company growth. With a 7 GW development portfolio and continued investment in new projects, Arevon is solidifying its role as a leader in powering an American energy future. For more information, visit arevonenergy.com.
About Private Credit at Goldman Sachs Alternatives
Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $625 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, sustainability, and hedge funds. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.
The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.
The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world's leading institutions, financial advisors and individuals. Goldman Sachs has approximately $3.6 trillion in assets under supervision globally as of December 31, 2025.
Established in 1996, Private Credit at Goldman Sachs Alternatives is one of the world's largest private credit investors with over $180 billion in assets across direct lending, mezzanine debt, hybrid capital and asset-based lending strategies. The team's deep industry and product knowledge, extensive relationships and global footprint position the firm to deliver scaled outcomes with speed and certainty, supporting companies from the lower middle market to large cap in size.
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FAQ**
How does the $920 million financing package for Arevon's Nighthawk Energy Storage Project, involving Goldman Sachs Group Inc. GS, impact the overall growth strategy of Arevon in the renewable energy sector?
What specific role does Goldman Sachs Group Inc. GS play in the preferred equity investment within the financing structure of the Nighthawk Energy Storage Project?
How does the partnership with Goldman Sachs Group Inc. GS and other financiers enhance Arevon's ability to meet California's clean energy goals through the Nighthawk Energy Storage Project?
What are the expected benefits to the local economy from the Nighthawk Energy Storage Project funded in part by Goldman Sachs Group Inc. GS, especially in terms of job creation and infrastructure support?
**MWN-AI FAQ is based on asking OpenAI questions about Goldman Sachs Group Inc. (NYSE: GS).
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