OCI Chairman Lee Woo-hyun (front, third from left) and CPS Energy CEO Rudy Garza (fourth from left) pose for a photo after signing a 20-year BESS deal
South Korean solar cell company OCI Holdings Co. said on Tuesday it has signed a deal with US power supplier CPS Energy to jointly build a 120-megawatt solar cell plant and a related battery energy storage system (BESS) with a 480 MWh storage capacity in Texas.
OCI said it will take care of the project’s development and financing. The Korean company’s US affiliate OCI Energy will be the battery facility’s owner and operator.
CPS, meanwhile, will have operational control of the system to serve electrical demand in the San Antonio region.
The scheme will be executed under a long-term storage capacity agreement between the two companies. The project vehicle will be called Alamo City ESS LLC.
OCI’s solar power generators in Namhae, Korea
To be located in southeastern Bexar County, the BESS will provide four hours of storage capacity to serve the energy needs of the San Antonio community for a 20-year period. Its commissioning is scheduled for late 2026.
Once online, CPS Energy will have enough battery storage to power more than 104,000 homes. The system will be able to discharge power for up to four hours at full demand.
‘HIGHLY PROFITABLE’ PROJECT
OCI officials said the project is “highly profitable,” given that over 40% of its investment in the project is eligible for the US government’s Investment Tax Credit.
OCI has a long-standing relationship with CPS Energy. The Korean company operates a solar farm on 70 acres near Texas 1604 Loop that’s already powering Texans’ homes.
OCI logo
OCI said it is donating $250,000 to the University of Texas at San Antonio as part of the deal for the new site.
Based in Texas, OCI Energy has steadily invested in the US solar cell segment to bolster its presence in the North American BESS market.
Since 2011, OCI Energy has been operating 5.2 GW solar and ESS projects in the US.
“Through this agreement with CPS Energy, we have confirmed the local market’s trust in OCI Energy’s capabilities in the solar power business. We will strategically expand related projects to create a new revenue stream,” said Lee Woo-hyun, OCI Holdings chairman and chief executive.
Write to Sang-Hoon Sung at uphoon@hankyung.com
In-Soo Nam edited this article.