Korea Southern Power Breaks Ground on 200MWh BESS in the US... LG Energy Solution to Supply LFP Batteries

On the 23rd (local time), officials are taking a commemorative photo at the groundbreaking ceremony of 'Rutile BESS' in Texas, USA. (From left) Junhyuk Choi, CEO of Alpha Asset Management; Youngcheol Park, Senior Vice President of Management Planning at Korea Southern Power; Junseok Choi, Executive Director of KBI; Bongju Kang, Executive Director of HD Hyundai Electric. Korea Southern Power

Korea Southern Power announced on January 27 that it held a groundbreaking ceremony for the 200 megawatt-hour (MWh) Rutile Battery Energy Storage System (BESS) in Texas, USA, on the 23rd, marking the official start of construction.

The groundbreaking ceremony was held as a follow-up to the Engineering, Procurement, and Construction (EPC) contract signed in September of last year. The event was attended by Youngcheol Park, Executive Vice President of Management Planning at Korea Southern Power, as well as representatives from Alpha Asset Management and KBI Group, the co-investors, and HD Hyundai Electric, which is in charge of EPC. Korea Southern Power plans to equip the Rutile BESS with lithium iron phosphate (LFP) batteries produced at LG Energy Solution's Arizona plant.

The Rutile BESS project marks Korea Southern Power's first entry into the large-scale BESS market in the United States. This project is a joint investment with Korea Overseas Infrastructure & Urban Development Corporation (KIND), Alpha Asset Management, and KBI Group. Korea Southern Power aims to generate revenue through "energy arbitrage," by purchasing electricity at low prices and selling it at higher prices. In addition, the facility will serve as a key hub for "grid stabilization," helping to maintain stable frequency and voltage in the Texas power grid.

The total project size is 120 million dollars (approximately 160 billion won). Korea Southern Power stated, "It is significant in that the entire process, from design and equipment procurement to construction and financing, was completed using the technology and capital of domestic companies."

Youngcheol Park, Executive Vice President of Management Planning at Korea Southern Power, said, "The Rutile BESS project is a critical turning point for Korea Southern Power as we expand from a focus on gas-fired combined cycle power generation to global energy innovation. Based on the collective strength of domestic companies successfully entering the US market as one team, we will widely promote the excellence of K-batteries and secure leadership in the North American energy market as a global energy leader."