OCI Holdings Signs 120MW ESS Contract with US CPS Energy

On the 6th (local time), at the signing ceremony held in San Antonio, Texas, USA, Lee Woo-hyun, Chairman of OCI Holdings (front row center left), and Rudy D. Garza (front row center right), President of CPS Energy, are taking a commemorative photo. Photo by OCI Holdings

OCI Energy, the U.S. subsidiary of OCI Holdings, announced on the 10th that it has signed a business agreement with CPS Energy, a power supply company in San Antonio, Texas, for a 120 MW (megawatt) scale ESS (Energy Storage System) project.

OCI Energy and CPS Energy held a signing ceremony for the ESS long-term storage capacity agreement (SCA·Storage Capacity Agreement) for 'Alamo City ESS LLC' in San Antonio on the 6th (local time).

Key officials present at the event included OCI Holdings Chairman Lee Woo-hyun, OCI Energy President Sabah Bayatli, CPS Energy President Rudy D. Garza, and San Antonio Mayor Ron Nirenberg.

The 'Alamo City ESS' project in Bear County, southeast Texas, is a utility-scale solar power plant combining a 120 MW solar facility and a 480 MWh capacity ESS on approximately 140,000 square meters of land.

Through this agreement, OCI Energy plans to complete the development of this ESS project by the end of 2026 and provide stable power to the San Antonio area through CPS Energy for about 20 years thereafter.

This ESS can supply power at a maximum output capacity of 120 MW for 4 hours, which is equivalent to the amount of electricity used by approximately 41,000 households in Korea for one day. According to industry sources, more than 40% of the investment cost for this project qualifies for the U.S. government’s Investment Tax Credit (ITC), making it highly profitable.

OCI Energy is currently continuing investments to strengthen its leadership as a key player in the North American utility solar and ESS market, based in Texas. Having steadily developed its business for over 10 years since 2011, it now holds a pipeline of more than 10 solar and ESS projects totaling 5.2 GW (gigawatts).

OCI Holdings Chairman Lee Woo-hyun stated, "By signing this agreement with CPS Energy, a U.S. energy specialist, we have confirmed the local market’s trust in OCI Energy’s large-scale solar business capabilities actively operating in Texas. We will strategically expand the development of ESS projects that can complement the intermittency of solar power and provide sustainable electricity to create new revenue."