REV Renewables Inc. proposed a $100 million initial public offering that would see the U.S. renewable energy generation and storage developer listed on the Nasdaq.

According to a Jan. 14 SEC filing, REV Renewables operates 290 MW, or 725 MWh, of battery storage in California and owns stakes in three pumped storage hydropower projects with a combined capacity of 1,642 MW, as well as solar and wind assets.

Owned by infrastructure investment firm LS Power Equity Advisors LLC and South Korean liquefied natural gas company SK E&S Co. Ltd., REV Renewables plans to place up to 625 MW of additional battery storage projects into service by the end of 2024 as part of its 10.5-GW development pipeline, for which 95% have interconnection queue filings with corresponding regional transmission operators.

The company, which would be listed under the ticker RVR, plans to differentiate itself from other developers by selling a "significant portion" of the power it generates on the spot market to provide "additional flexibility." About 23% of its generation and storage capacity utilized long-term contract structures with creditworthy counterparties as of Sept. 30, 2021.

"We believe that the pool of [load serving entities], financial institutions and corporate off-takers that have historically provided renewables projects with long-term contracts is not sufficiently deep to support the large scale deployment required, particularly in competitive markets," REV Renewables said.

The "new approach" will enable the company to make "early and effective siting decisions" as available land for battery storage projects becomes more scarce.

REV Renewables said it will use hedging to mitigate risk in competitive markets "without relying solely on traditional bundled long-term contracts that we believe have become discounted relative to the market values of energy, capacity, ancillary services and environmental attributes on a stand-alone basis."

Still, the company acknowledged that its exposure to energy price volatility will rise without long-term off-take agreements.

Another key risk, REV Renewables said, is high demand for raw battery materials like cobalt, lithium and nickel, which are subject to "price fluctuations and of limited availability."

When the IPO is completed, majority owner LS Power will hold over 50% of REV Renewables' common stock voting power, and the proceeds will pay for $150 million to $200 million in California battery storage capital spending, debt reduction and spending on other projects.

The company hired joint bookrunning managers Morgan Stanley, Goldman Sachs & Co. LLC, RBC Capital Markets, BofA Securities, Citigroup, BMO Capital Markets, Evercore ISI and Wolfe | Nomura Alliance.

REV Renewables' IPO proposal comes less than a week after a subsidiary of private equity D.E. Shaw & Co. LP filed to be a publicly listed independent power producer.