OCI Chairman Lee Woo-hyun: "Trump's Second Term Positive for Solar Power Business... Expansion in the U.S."

OCI Energy, a leader in the solar power generation business in Texas, USA, plans to expand its operations to neighboring states this year. The company has a positive outlook on the impact of the second Trump administration on its business.

Lee Woo-hyun, Chairman of OCI Holdings, is giving a lecture on "Trends in the Global Energy Industry, Korea's Competitiveness, and Future Directions" at the 3rd Korea CEO Forum held on the 6th at the Westin Chosun Hotel in Jung-gu, Seoul. Photo by Noh Kyung-jo

On the 6th, Lee Woo-hyun, Chairman of OCI Holdings, gave a lecture on "Global Energy Industry Trends, Korea's Competitiveness, and Future Directions" at the 3rd Korea CEO Forum held at the Westin Chosun Hotel in Jung-gu, Seoul.

Chairman Lee introduced OCI Energy's ongoing 'BESS (Battery Energy Storage System)' project in the United States. BESS is an energy solution business that links solar power generation with energy storage systems (ESS). It overcomes the limitation of solar power generation, which is only possible during daylight, by using batteries to enable continuous 24-hour power generation. This allows stable supply of solar power regardless of weather or time.

OCI entered the U.S. solar power market in 2012 through its American subsidiary, OCI Energy. The company currently holds a solar power and ESS project pipeline totaling 5.2GW in its base of operations, Texas. Chairman Lee explained, "The solar power business yields an annual profit of about 6-8%, and the U.S. provides a 30% investment tax credit (ITC) the following year for this business. Additionally, using U.S.-made ESS batteries grants an extra 10% ITC benefit."

At the end of last year, OCI Energy signed a business agreement with CPS Energy, a U.S. power supply company, to supply solar power to the San Antonio area in Texas for 20 years. In relation to this, the company plans to complete the development of ESS projects with installed capacity by 2026.

Chairman Lee emphasized that OCI Energy has established itself as a leading company in the rising solar power business in Texas. He stated, "About half of the U.S. artificial intelligence (AI) data centers are being built in Texas, leading to rapidly increasing power consumption," and added, "OCI Energy has become the number one power generation company in Texas with a 15% market share." He also mentioned, "This year, we plan to expand our business to other states adjacent to Texas."

Chairman Lee forecasted that the solar power business will be more favorable under the second Trump administration. He said, "I believe the Trump administration's policies will be much clearer than the previous government about what will be done and what will not be allowed. The regulatory approach will be simple." He also noted, "The ITC benefits are separate from the Inflation Reduction Act (IRA), so there will be no negative impact on the solar power business," and added, "Renewable energy is necessary for the U.S. to solve its chronic power shortage problem."

The forum was held under the theme "In an Era of Extreme Uncertainty, Innovation as a Driving Force." Sohn Kyung-shik, Chairman of the Korea Employers Federation, said in his opening remarks, "It is no exaggeration to say that the growth and development of companies is directly linked to the development of the national economy," and emphasized, "National support must back companies to lead growth through innovation." He particularly stressed, "In the new Korea-U.S. trade environment, cooperation must be strengthened in key economic sectors such as semiconductors, batteries, and energy to ensure that the U.S. remains a steadfast trade and investment partner."

This content was produced with the assistance of AI translation services.