OCI Energy Partners with Arava Power
to Develop a 260MW Power Plant in Houston
OCI Holdings' U.S. subsidiary OCI Energy is developing a 260MW solar power plant with the Israeli solar company Arava Power.
OCI Holdings announced on the 24th that it has established a joint venture (JV) called the 'Sun Roper Project' based on this agreement. OCI Energy and Arava Power reportedly signed an agreement to establish the joint venture on the 20th (local time). Arava Power is a company that develops and operates multiple solar and ESS projects in Israel and the United States.
The Sun Roper Project involves installing a 260MW solar power plant on a 1,714-acre (approximately 6.93 million ㎥) site in Wharton County, southwest of Houston, Texas. This scale corresponds to the amount of electricity that about 60,000 households in Korea can use in one day.
The joint venture shares will be held equally by OCI Energy (50%) and Arava Power (50%), and through joint investment by both companies, the project development will be completed by the end of 2026, with profits from operation and future sale shared. The two companies have maintained a friendly relationship since OCI Energy started the 200MW 'Sun Ray Project' in 2021, which was sold to Arava Power and the Israeli energy company Paz Oil.
This Sun Roper Project is expected to be highly profitable as the United States supports a 30% investment tax credit through the Inflation Reduction Act (IRA), with an additional 10% energy community bonus, allowing up to 40% of the investment cost to be reimbursed.
Lee Woo-hyun, Chairman of OCI Holdings, said, "OCI Energy has grown to become the number one company with a 15% market share in the solar power generation and development market in Texas, USA," adding, "This year, we will expand the solar power business to regions beyond Texas to create new revenue."
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