Averon has commenced construction of the Cormorant Energy Storage Project in Daly City, California. The project is a $600 million facility that will offer storage capacity of 250MW/1,000 megawatt-hours (MWh). Moreover, it is expected to become operational in 2027 and power around 321,000 homes for up to four hours. The move enhances grid reliability by providing stored electricity during peak demand periods.

The energy storage system, owned and operated by Arevon, is also under a long-term offtake agreement with MCE. The company provides electricity to more than 1.8 million residents and businesses across several counties such as Contra Costa, Napa, Marin and Solano.

Initially planned at a lower capacity of 188MW/752MWh, the project has been expanded to its current capacity. Furthermore, additional supply has been secured under an agreement with MCE. The project will hire around 175 workers at its peak construction phase.

Outlook on the Cormorant Energy Storage Project by Averon

The Cormorant Energy Storage Project by Averon is expected to use lithium iron phosphate batteries to provide safe, efficient energy storage. Primoris Services Corporation’s Renewables group will serve as the engineering, procurement and construction contractor. The local economy is also expected to benefit from increased activity as nearby businesses such as hotels and restaurants see a rise in patronage.

Over its operational life, the Cormorant facility is projected to generate more than $73m in property tax revenue. Arevon CEO Justin Johnson said: “The start of construction marks an important milestone for the Cormorant project and the Daly City community. Projects like Cormorant are critical to strengthening California’s energy grid by storing power when it is abundant and delivering it when it is needed most.”

Furthermore, he noted that Averon is proud to continue investing in infrastructure that supports reliability, affordability and California’s long-term clean energy goals. Earlier this month, Arevon also secured $920m in financing for its Nighthawk Energy Storage Project, a 300MW/1.2 gigawatt-hour facility being built in Poway, California. The move shows advancement in the Nighthawk Energy Storage project since it broke ground late last year.

Project Overview

• Project Type: Battery energy storage system (BESS).
• Estimated Cost: $600 million.
• Capacity: 250 MW / 1,000 MWh.
• Purpose: Store electricity and supply power during peak demand.

Key Stakeholders

• Owner / Developer: Arevon
• EPC Contractor: Primoris Services Corporation
• Offtaker: MCE

Location

• City: Daly City
• State: California
• Country: United States

Scope

• Construction of a large-scale lithium iron phosphate battery storage facility.
• Designed to power about 321,000 homes for up to four hours.
• Also peak construction workforce of approximately 175 workers.

Timeline

• Construction Start: 2026.
• Expected Operation: 2027.

Status

• Stage: Under construction (groundbreaking completed).

Strategic Significance

• Improves grid reliability and supports renewable energy integration.
• Also expected to generate over $73 million in property tax revenue during operations.