Arevon Announces Offtake Agreement with MCE for a 250 Megawatt Energy Storage Project in California

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Apr 17, 2024, 08:00 ET

NEW YORK and SCOTTSDALE, Ariz., April 17, 2024 /PRNewswire/ -- Arevon Energy, Inc., a leading renewable energy developer, owner, and operator, announced it has signed a long-term tolling agreement with electricity provider MCE for 188 megawatts (MW) of the Cormorant Energy Storage Project. Cormorant Energy Storage is a 250 megawatt/1,000 megawatt-hour (MWh) stand-alone battery energy storage system which will be constructed in two phases in Daly City, California. The first 188 MW phase is scheduled to begin construction in Q1 2025 and is anticipated to become operational in Q2 2026.

Cormorant Energy Storage will feature state-of-the-art battery technology that will store energy during non-peak hours and discharge energy to provide power when it is needed during peak demand periods. Once both phases of the project are operational, Cormorant Energy Storage will be able to power more than 55,000 homes daily, facilitating the addition of more renewable energy resources into the region.

In addition to enhancing grid reliability and reducing the potential for blackouts, Cormorant Energy Storage is expected to support approximately 75 union construction jobs. The project is estimated to provide more than $27 million in property tax payments over its lifespan which will support city and county government activities as well as the local school district.

"This agreement showcases the strength of collaboration with MCE and also supports Arevon and MCE's joint commitment to bring clean, reliable energy to local communities," Kevin Smith, Chief Executive Officer at Arevon said. "Arevon will continue to expand its energy storage portfolio in order to improve grid stability and resiliency in California, enabling the state to further its decarbonization goals."

This agreement is the first commercial contract for Arevon and MCE. MCE is a community choice energy provider that supplies clean electricity and local clean energy programs to 1.5 million residents and businesses across Contra Costa, Marin, Napa, and Solano counties.

"Battery storage is critical to fast-tracking the clean energy transition. Through our partnership with Arevon, we are bringing online our largest battery storage project yet to support clean, reliable, and affordable electricity service for the Bay Area residents and businesses we serve," Dawn Weisz, Chief Executive Officer at MCE said.

About Arevon
Arevon Energy, Inc. is a leading renewable energy company, supplying clean energy to utilities and corporations across North America. Headquartered in Scottsdale, Arizona, and New York City, Arevon uses innovative approaches and leading-edge technology to develop, build, finance, own, and operate clean energy projects. Arevon owns and operates more than 3,500 megawatts (MW) of solar, storage, and solar + storage hybrid assets across the country. The company is a renewable energy leader in California with more than 1,900 MW in operation and more than 1,000 MW under construction. Arevon has a robust portfolio of more than 6 gigawatts of projects in development which will enable the company to provide more clean, cost-effective energy to homes and businesses. Its financial strength, innovation, and industry expertise come together to improve the structure and performance of its platform of solar and energy storage power plants. Arevon was named one of Arizona's Top Workplaces in 2022 and 2023. For more information, please visit: www.arevonenergy.com.

About MCE
MCE is a not-for-profit public agency and the preferred electricity provider for more than 585,000 customer accounts and 1.5 million residents and businesses across Contra Costa, Marin, Napa, and Solano counties. Setting the standard for clean energy in California since 2010, MCE leads with 60-100% renewable power at stable rates, delivering a 1,400 MW peak load and significantly reducing greenhouse emissions and reinvesting millions in local programs. For more information about MCE, visit mceCleanEnergy.org.

SOURCE Arevon