Arevon Energy, Inc. has closed a $920 million financing package for the 300-megawatt / 1,200-megawatt-hour Nighthawk Energy Storage Project, a large battery facility currently under construction in Poway, California.

The financing combines several funding sources, including a $482 million debt facility arranged by CIBC as left lead arranger. Additional lenders include ING Capital LLC, NORD/LB, Santander, and Zions Bancorporation.

The transaction also includes a $169 million preferred equity investment from Goldman Sachs Alternatives, designed to simplify the monetization of federal tax credits, along with a $268 million tax credit transfer commitment with a corporate purchaser.

Legal and advisory support for the deal involved several firms. Arevon was represented by Latham & Watkins and Sheppard Mullin. Lenders were advised by Norton Rose Fulbright and Allen Matkins, while Milbank LLP and Allen Matkins acted as counsel to Goldman Sachs. CG/CRC-IB served as Arevon’s tax equity advisor.

Emma Raine, executive director of project finance at CIBC, said the bank was pleased to support the project through its role as arranger, administrative agent, and bookrunner, noting that partnerships with renewable energy developers such as Arevon are part of the bank’s broader effort to support the U.S. energy transition.

Vikas Agrawal, managing director and co-head of energy transition climate credit at Goldman Sachs Alternatives, said the investment reflects the firm’s strategy of providing tailored financing solutions for large-scale clean energy infrastructure. He added that energy storage plays a key role in maintaining grid reliability as renewable generation expands.

Denise Tait, chief investment officer at Arevon, said combining debt, preferred equity, and tax credit transfer structures was critical to financing an energy storage project of this size. She said the structure demonstrates how flexible capital solutions can support long-term investment in grid infrastructure despite evolving market and policy conditions.

Economic Impact

Arevon will own and operate the Nighthawk facility once it becomes operational, which is expected later this year. During peak construction the project employed more than 130 workers. While over its lifetime it is expected to generate more than $30 million in property tax payments supporting local services and infrastructure in the Poway area.

The battery storage system uses lithium iron phosphate technology designed to store electricity when demand is low and discharge it during periods of peak consumption. When fully operational, the facility is expected to provide enough stored energy to supply roughly 385,000 homes for up to four hours during peak demand.

Under a long-term agreement, the project will provide resource adequacy capacity to Pacific Gas and Electric Company, supporting grid reliability and California’s clean energy targets.

Arevon, a nationwide renewable energy developer, currently has more than 3.7 gigawatts of projects operating in California, representing over $5 billion in capital investments.

Large-scale energy storage projects are increasingly critical to regional grid reliability. Beyond Nighthawk, projects like the Steel River Solar + Storage Project in Arkansas, acquired by Cypress Creek Renewables, highlight efforts to boost U.S. clean energy capacity. Additionally, Arevon’s $920 million financing for the 300‑MW / 1,200‑MWh Nighthawk Energy Storage Project continues a trend of major U.S. clean energy investments, similar to the Creekstone Energy solar project supporting the Delta Gigasite Campus in Utah, which recently signed a lease, the largest such deal in the state’s history, highlighting efforts to expand the grid to meet surging energy demand.

Nighthawk Energy Storage Project — Factsheet

Developer: Arevon Energy, Inc.

Location: Poway, California

Project Type: Utility-scale battery energy storage system (BESS)

Capacity: 300 MW / 1,200 MWh (4-hour battery storage)

Technology: Lithium iron phosphate battery systems

Total Financing: $920 million

Debt Financing: $482 million arranged by CIBC with participation from ING Capital LLC, NORD/LB, Santander, and Zions Bancorporation

Preferred Equity Investment: $169 million from Goldman Sachs Alternatives

Tax Credit Transfer Commitment: $268 million

Construction Status: Under construction

Expected Operation: 2026

Power Supply Capability: Up to 385,000 homes for up to four hours during peak demand

Power Offtaker / Grid Agreement: Resource adequacy agreement with Pacific Gas and Electric Company

Construction Workforce: More than 130 workers at peak construction

Local Economic Impact: Over $30 million expected in property tax payments during the project lifetime

Project Team

Developer / Owner: Arevon Energy

EPC Contractor: Rosendin

Technology Provider: Tesla (Megapack batteries)

Offtaker: Pacific Gas and Electric Company

Lead Arranger: CIBC

Lenders: ING Capital, NORD/LB, Santander, Zions Bancorporation

Preferred Equity Investor: Goldman Sachs Alternatives