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Arevon and Blackstone secure $350M for California BESS as ITC transferability gains momentum in clean energy sector.

Developer Arevon and Blackstone have secured a $350 million financing package for the 200MW/800MWh Condor BESS in California, set to start operations in Q2 2024. The financing includes a commitment from investment bank Stifel Financial Corp to buy ITCs. Meanwhile, tax equity specialist investor Foss & Company announced a US$118.5 million ITC transferability deal for the Longbow BESS, a 174MW/384MWh, 2.2-hour system owned by Tokyo Gas America. The transferability of ITC was introduced as part of the Inflation Reduction Act to make it easier for a wider range of investors to invest in clean energy projects using tax credits. The report by Crux suggests that the transferability market has grown faster than anyone expected.

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