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Lee Woo-hyun, Chairman of OCI Holdings. (Photo: OCI Holdings) |
[Alpha Biz= Reporter Kim Jisun] OCI Energy Signs MOU with CPS Energy for Power Supply through Energy Storage Systems (ESS)
OCI Energy, a subsidiary of OCI Holdings, announced on the 10th that it has signed a Memorandum of Understanding (MOU) with CPS Energy, a U.S. power supply company, for power supply through Energy Storage Systems (ESS).
OCI Energy has been working on the Alamo City ESS project in Texas, which connects a 120 MW solar power facility with a 480 MWh ESS. The power plant site covers 140,000 m² and is capable of supplying electricity to about 41,000 households. CPS Energy, which is collaborating with OCI Energy, plans to supply the electricity produced by the project to the Texas area for about 20 years starting from 2026 when the project is completed.
The Alamo City ESS project by OCI Energy meets all the requirements for the Investment Tax Credit (ITC) under the U.S. Inflation Reduction Act (IRA), which is expected to significantly reduce the investment costs. Companies conducting eco-friendly businesses in the U.S. are eligible for up to 40% of their investment costs to be refunded, and the Alamo City project meets the criteria for the maximum refund rate. An OCI Holdings official stated, "We expect the business profitability to be very high due to meeting the ITC requirements."
OCI Group has been steadily expanding its solar energy business in Texas, a region with favorable conditions for solar power generation, since 2011. The group has completed or is working on over 10 solar and ESS projects, with a total capacity of 5.2 GW.
The company has been expanding its business beyond its core area of solar cell raw material (polysilicon) production to include solar panels, solar power plant development, and ESS. The goal is to establish a "non-China solar value chain" in the U.S. by leveraging the country's efforts to counter China.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
