Developer secures financing for Gibson Solar project
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Arizona-based Arevon Energy Inc. said Tuesday that it has secured $351 million in financing for its solar project in Gibson County. When operational, Gibson Solar is expected to generate enough clean energy to power the equivalent of more than 30,000 homes annually.
Arevon broke ground on the project late last month, and the developer said it will create more than 250 construction jobs.
The financing package includes a construction loan with CoBank, Societe Generale, and PNC Bank along with a letter of credit facility provided by CoBank.
“Financial close and the start of construction are two major milestones for the Gibson Solar Project that I am pleased to celebrate alongside the Arevon team,” Denise Tait, chief investment officer at Arevon, said in a news release. “Gibson Solar represents our sixth completed financial package in the last year, amounting to $3 billion in capital. These closings would not be possible without our partners, and we are grateful for their continued trust and collaboration in executing deals that enable a clean energy future.”
The closing for the Gibson County project comes just a few weeks after Arevon received $299 million in financing for its Ratts 1 and Heirloom Solar projects in Pike County, and several months after it closed on $352 million in financing for its Posey Solar project.
The 251-megawatt solar farm, according to the developer, will also generate more than $83 million in local government payments over the life of the project, providing revenue for schools, first responders and other local needs. Local landowners will also receive steady payments over the same time period.
Arevon is partnering with Merrillville-based Northern Indiana Public Service Co. (NIPSCO), which will own and operate the solar farm after construction is completed.
“Our collaboration with NIPSCO will help the utility take the next step in their electric generation transition to provide sustainable, cost-effective, and reliable energy to their customers,” Arevon CEO Kevin Smith said. “Long term, the Gibson Solar Project will strengthen the local economy and increase energy security.”
A timeline for Gibson Solar’s completion was not provided.