Blackstone’s credit and insurance business is financing Arevon Energy’s clean energy storage project in the US through a combination of preferred equity, tax credit transfers and debt.
Blackstone Credit & Insurance (BXCI), which focuses on providing private credit to the renewable energy, infrastructure and energy-transition sectors, has agreed to a $350m (€325m) financing deal for Condor Energy Storage, a project currently under construction in Grand Terrace, California.
Blackstone’s preferred equity investment in Condor enables streamlined tax credit monetisation, eliminating the need for traditional tax equity financing, the parties said.
The financing includes a commitment from Stifel Financial to buy investment tax credits and is supported with a $164m debt facility which was secured with coordinating lead arrangers CoBank ACB, Helaba and Sumitomo Mitsui Banking Corporation.
Arevon also secured real estate financing from climate investment firm HASI related to the project’s land.
The 200MW project is expected to start operations in the second quarter of 2024 and is contracted under a 15-year agreement with Southern California Edison. Arevon will own and operate the project on a long-term basis.
Zachary Rubenstein, managing director in the Blackstone credit and insurance sustainable resources group, said: “Blackstone continues to see tremendous need for large-scale financing solutions in the energy transition market, and we look forward to partnering with Arevon on future opportunities.”
Daniel Murphy, director of project finance at Arevon, said: “Condor represents not only our commitment to developing assets that deliver grid resilience but also our team’s adeptness in navigating complex, hybrid financing arrangements.
“Along with our partners, we remain focused on pioneering climate finance solutions that promote a sustainable clean energy future.”
Kevin Smith, CEO at Arevon, said: “We appreciate our partnership with BXCI, a leading player in providing efficient solutions in the renewable energy market, along with our other valued partners, who played pivotal roles in navigating the intricacies of this transaction.
“Together, we have forged a path toward sustainable energy solutions, and we extend our sincere thanks to all involved for their dedication and expertise.”
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