OCI Energy, the U.S. subsidiary of OCI Holdings (010060.KS), held a groundbreaking ceremony on the 1st local time for the Sunlofer solar power plant it is developing jointly with Israeli energy company Arava Power, the parent company said on the 3rd.
Attendees included OCI Holdings Chairman Lee Woo-hyun, OCI Energy President Saba Bayatli and Arava Power Chief Executive Ilan Zidkoni.
The Sunlofer project will build a 260-megawatt solar plant on a 6.39 million-square-meter site in Wharton County, Texas. The plant's output would be enough to supply about 60,000 South Korean households of four people each on a daily basis, and commercial operation is scheduled to begin in 2027.
OCI Energy and Arava Power each hold a 50% stake in the joint development. In February, the partners secured project financing based on a long-term power purchase agreement signed with a top-ranked Fortune company.
OCI Energy has developed utility-scale solar projects centered on Texas since 2012. Over 15 years, it has developed and sold solar projects totaling about 2 gigawatts.
Expansion has picked up speed over the past two years as the artificial intelligence data center construction boom lifted demand for renewable power. Last year, the company completed the development and sale of 480 MW of solar projects, including the 260-MW Sunlofer, Pepper at 120 MW and Lucky 7 at 100 MW. This year, it also completed the sale of a 50% stake in the 500-MW Lasaye project, which it is developing jointly with Arava Power. That plant is set to break ground late this year with commercial operation targeted for 2028, and the partners are pursuing a power purchase agreement with one of the major U.S. technology companies.
The company is also advancing its energy storage system business. OCI Energy is carrying out a 120-MW, 480-megawatt-hour ESS project with CPS Energy and LG Energy Solution (373220.KS) Vertech. OCI Energy will operate the project directly, with commercial operation planned for 2027.
OCI Energy's secured solar and ESS development assets total 6.3 GW across 30 projects. The company aims to reach more than 15 GW in development assets and 2 GW in operating assets by 2030. To that end, it plans to boost profitability through business models spanning U.S. solar and ESS project development and supply as well as energy infrastructure services.
"Solar continues to grow in the U.S. energy market as power demand rises from AI data centers," Lee said. "The groundbreaking of the Sunlofer project shows that OCI Energy is expanding from a development-and-sale focus toward a direct operating base, widening opportunities to generate new revenue."
