Korea Zinc Receives Approval for 'BESS and Solar Power Project' in Australia... Accelerates Eco-Friendly Business Expansion

Targeting Commercial Operation in 2027
Annual Reduction of 370,000 Tons of Carbon Emissions

Korea Zinc announced on October 22 that the Richmond Valley Battery Energy Storage System (BESS) and Solar Power Plant Project, promoted by its Australian renewable energy and green hydrogen business subsidiary Ark Energy, has received development approval from the New South Wales (NSW) state government in Australia.

Richmond Valley Battery Energy Storage System (BESS) and Solar Power Plant Project 3D Rendering. Arc Energy

With the project now approved by the New South Wales state government, Ark Energy plans to accelerate the construction schedule, aiming to begin commercial operations in the second half of 2027.

The lithium iron phosphate (LFP)-based BESS will have a power capacity of 275 megawatts (MW) and will be able to charge and discharge up to 2,200 MWh of energy over eight hours.

The BESS is designed to store electricity generated from renewable sources during the day and supply it at night or during peak demand periods. Once fully operational, the facility will be able to provide a stable supply of electricity each year to approximately 175,000 households in New South Wales, Australia.

To ensure stable BESS charging using clean energy, a 200 MW-class solar power plant will also be constructed and operated simultaneously. The operation of the solar power plant is expected to reduce annual carbon dioxide emissions by 370,000 tons.

Ark Energy will carry out the Richmond Valley Project under a Build-Own-Operate (BOO) model, which includes construction, operation, and ownership. Batteries, which account for about 52% of the total investment of approximately 1.1 billion Australian dollars (about 1 trillion won), will be supplied by Hanwha Energy.

The New South Wales state government plans to phase out coal-fired power generation and transition to renewable energy-based electricity production by 2028. As part of the process of replacing fossil fuels with renewables, the state government has set a goal to build long-duration storage BESS to maintain the stability of the regional power grid.

Ark Energy was selected as the final project operator in December 2023 after bidding for the Long-Term Energy Service Agreement (LTESA) announced by the New South Wales state government. Under the LTESA, Ark Energy will contribute to the stabilization of the regional power grid and participate in the ancillary services market as a state-designated operator for 14 years from the start of facility operations, thereby securing a stable revenue base.

Choi Yunbum, Chairman of Korea Zinc, said, "The Richmond Valley Project will become a model case of public-private cooperation between Korea and Australia toward the shared goal of 'eco-friendly energy transition.' We will do our utmost to ensure the smooth establishment of the BESS and solar power plant in Australia as we proactively prepare for the era of carbon neutrality."

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