Arevon breaks ground on $600 million California storage project with expanded capacity under MCE contract

Arevon Energy has commenced construction on the 250 MW/1,000 MWh Cormorant Energy Storage Project in Daly City, California. The $600 million facility, slated for 2027 operations, has expanded its contracted capacity with electricity provider MCE, underscoring growing utility-scale storage demand.

Arevon Energy Inc. has initiated construction on the Cormorant Energy Storage Project, a 250 MW/1,000 MWh lithium iron phosphate (LFP) battery facility in Daly City, California. The project, valued at $600 million, is scheduled to begin operations in 2027. Originally planned at 188 MW/752 MWh, the facility’s capacity was expanded, with the additional output fully contracted under a long-term offtake agreement with MCE, a community choice aggregator serving over 1.8 million customers across four Bay Area counties.

The development signals sustained momentum in utility-scale storage deployments driven by grid reliability requirements and peak demand management. For project owners and independent power producers, the capacity expansion illustrates how early-stage contract structures can accommodate growing load needs. Primoris Services Corporation’s Renewables group serves as the engineering, procurement, and construction contractor, with peak employment projected at 175 workers. According to official disclosures, the facility will generate an estimated $73 million in property tax revenue over its lifetime, supporting local public services and infrastructure.

For investors and energy developers, the project highlights the increasing scale of storage assets integrated with load-serving entities under long-term contracts, reinforcing California’s trajectory toward decarbonization targets while maintaining grid stability.

Arevon Energy, Inc. is a US-based developer, owner, and operator of utility-scale renewable energy and storage assets. MCE is a public agency and community choice aggregator providing electricity service to Contra Costa, Marin, Napa, and Solano counties.