Developers acquire $509 million to finance Kelso Solar Project

Renewable energy developer Arevon Energy, Inc. announced a $509 million financial package on Wednesday, March 12, to develop the 430-megawatt Kelso 1 and 2 Solar Projects in Scott County.

The two-phase Kelso Solar facilities will be the company’s first utility-scale energy projects in Missouri.

“Utility-scale solar projects are essential contributors in strengthening the American economy through the creation of competitive-wage jobs, local tax revenue, and other steady, reliable benefits that enhance communities,” Kevin Smith, chief executive officer at the Scottsdale, Arizona-based Arevon, said in a news release. “Kelso Solar will add resilience and security to America’s energy infrastructure, and Arevon looks forward to advancing our development activities in America’s heartland.”

The news release broke down the funding. Of the $509 million, $245 million came from a bridge loan, $172 from a construction loan and $92 million from credit support. Canadian Imperial Bank of Commerce (CIBC) served as administrative agent, left lead arranger and bookrunner for the financing. It also served as the projects’ lenders, coordinating lead arrangers and green loan coordinators alongside the German Commerzbank, Commonwealth Bank of Australia, the British Lloyds Bank and the National Bank of Canada. The Bank of New York Mellon Corporation acted as the collateral agent.

Built on a 2,500-acre location north of Blodgett near Interstate 55, the Kelso Solar Project is already under initial construction, with a planned completion date to be revealed during an on-site event in April. The news release estimated they could create 450 jobs during the building process.

The facility will power Meta Platform, Inc.’s operations in the Southeast Missouri region. Arevon announced it would disburse more than $34 million to local governments over the Scott County facilities’ 35-year operational lifespan, aiming to support schools, infrastructure and other services.

The renewable energy developer owns and operates more than 4,500 megawatts of solar and energy storage projects across 17 states. In addition to the Kelso projects, they are also currently building four solar facilities totaling 744 megawatts in Indiana.

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