Construction underway on largest power plant in Arevon portfolio
NEW YORK and SCOTTSDALE, Ariz. – Arevon Energy, Inc. has secured tax equity financing and construction-to-term debt to finance the Eland 1 solar-plus-storage power plant in Kern County, California.
Eland 1 is a 310 MW solar power plant with 150 MW/600 MWh of storage. Under a long-term power purchase agreement, this project will generate 200 MW of electricity to serve the power needs of Southern California, with the additional power generation used to charge the batteries.
“That Arevon can finance and build renewable energy projects of this scale in this challenging environment speaks volumes about our team and our ability to deliver for all of our valued stakeholders,” said Brian Callaway, Arevon’s Chief Financial Officer. “This milestone is a major achievement and a great step forward for the company.”
Daniel Murphy, Director, Project Finance at Arevon added, “We are grateful for the strong relationships we have with our financial partners, who worked tirelessly to get this complicated deal across the finish line. The teams navigated through numerous industry headwinds and changes to accomplish a successful financial close.”
Wells Fargo was sole tax equity investor, and Wells Fargo and Canadian Imperial Bank of Commerce (CIBC) acted as coordinating lead arrangers on the debt. KeyBank, Credit Agricole, CoBank and Zions also participated in the debt facility.
“We are pleased to provide financing for Arevon Energy as it develops Eland 1, a renewable energy project that will serve the power needs of Southern California,” said Alok Garg, Head of Renewables & Asset Finance, Wells Fargo Corporate and Investment Bank.
“We are proud to partner with Arevon and bring our structuring expertise to support this important next step in the company’s growth,” said James Wright, Head of U.S. Project Finance and Infrastructure at CIBC. “As part of our commitment to help our clients achieve their sustainability ambitions, we are excited to lead this financing for the Eland 1 project.”
The Eland 1 facility is currently under construction, adding to Arevon’s portfolio of more than 300 MW of operating solar projects in Kern County. Energy from the Eland 1 facility is contracted to the Southern California Public Power Authority, allowing the public power system to provide electricity to ten municipalities across the region.
Together with Eland 2 (the project’s second phase), this project will be Arevon’s largest operating power plant when completed generating enough electricity to power 200,000 homes annually.
Amis, Patel & Brewer, LLP represented Arevon as legal counsel; Milbank LLP served as lender counsel and Sheppard Mullin served as tax equity counsel.
Arevon Energy, Inc. is a leading renewable energy company, supplying clean energy to utilities and corporations across North America. Headquartered in Scottsdale, Ariz., and New York City, Arevon uses innovative approaches and leading-edge technology to finance and manage projects from development through construction to long-term commercial operation. Its financial prowess and industry expertise come together to improve the structure and performance of its platform of wind, solar, and energy storage power plants. Arevon was named one of Arizona’s Top Workplaces in 2022. For more information, please visit: www.arevonenergy.com
CIBC is a leading North American financial institution with 13 million personal banking, business, public sector and institutional clients. Across Personal and Small Business Banking, Commercial Banking and Wealth Management, and Capital Markets businesses, CIBC offers a full range of advice, solutions and services through its leading digital banking network, and locations across Canada, in the United States and around the world. Ongoing news releases and more information about CIBC can be found at www.cibc.com/ca/media-centre.