Richmond Valley BESS Supply Contract Signed
First Commercial Collaboration with Hanwha Group in Australia
Korea Zinc has sought to strengthen global cooperation in the renewable energy sector by agreeing to supply energy storage devices to Hanwha Energy in Australia.
From the left, Choi Joo-won, CEO of Arc Energy, and Lee Jae-gyu, CEO of Hanwha Energy, are signing the Richmond Valley Battery Energy Storage System supply contract. Provided by Korea Zinc.
On the 19th, Korea Zinc announced that Hanwha Energy and ArkEnergy, a subsidiary specializing in renewable energy and green hydrogen projects in Australia, signed a supply contract for the Richmond Valley Battery Energy Storage System (Richmond Valley BESS) on the 12th. Under this contract, Hanwha Energy will supply the BESS system, including batteries and inverters, to ArkEnergy and provide commissioning services.
ArkEnergy signed a long-term energy supply contract for BESS with the New South Wales (NSW) state government in Australia in December 2023. The project is being advanced with the goal of commercial operation in 2027 and will be operated with support from the NSW government after the start of commercial operation.
Over the past year, ArkEnergy conducted a competitive bidding process to find a supplier capable of providing a 2200MWh battery that can discharge for 8 hours after charging, while meeting Australia’s stringent regulations and certification standards related to the project.
After thorough review, Hanwha Energy was selected as the preferred system integration package supplier in November last year, and the two companies have been discussing detailed terms since late November by forming a task force (TF).
The Richmond Valley BESS is a large-scale energy storage system project located south of Casino City in New South Wales, Australia, and is considered one of the largest ESS projects in Australia. The Richmond Valley BESS can operate continuously for up to 8 hours on a single charge.
ArkEnergy is expected to contribute to enhancing the stability of the power grid in NSW, where Sydney?the representative city of Australia?is located and energy consumption is the highest, and to generate stable profits through energy arbitrage.
A Korea Zinc official stated, “This supply contract and cooperation signify that Korea Zinc and Hanwha Group have established a sustainable growth foundation in eco-friendly renewable energy and green hydrogen businesses, and it also holds important meaning in strengthening competitiveness in the rapidly growing ESS market led by the Australian government recently. Going forward, both companies will continue to cooperate to enhance competitiveness in the global energy sector.”
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