OCI Holdings Begins Construction of ESS Project in Texas, U.S.

Targeting Commercial Operation in 2027
20-Year Agreement Signed with CPS Energy

OCI Holdings' U.S. subsidiary, OCI Energy, has begun construction on a large-scale energy storage system (ESS) project in Texas. OCI Holdings' strategy is to secure long-term power sales revenue by expanding its direct operation of ESS facilities.

Groundbreaking ceremony site of OCI Energy Alamo City Project. OCI Holdings

On May 19 (local time), OCI Holdings announced that OCI Energy held a groundbreaking ceremony for the 'Alamo City ESS Project' in partnership with local energy company CPS Energy.

This project will build an ESS with a capacity of 120 MW and a storage volume of 480 MWh on a site of approximately 140,000 square meters in Bexar County, San Antonio, Texas. OCI Energy is targeting commercial operation in 2027, and upon completion, it expects the facility to be able to supply the electricity demand of approximately 30,000 households for up to four hours.

Partners in the project include ING Capital, LG Energy Solution Vertech, and Elgin Power Solutions.

Previously, OCI Energy signed a long-term storage capacity agreement (SCA) with CPS Energy to supply power to the San Antonio area for about 20 years.

In particular, this project meets the tax credit requirements under the U.S. OBBB Act, making it eligible for up to a 30% investment tax credit (ITC) and a 10% energy community bonus. As a result, investors are expected to benefit from a reimbursement of up to 40% of their investment costs.

An OCI Holdings official said, "We plan to increase our direct operation ratio to generate long-term power sales revenue," adding, "We will also strategically expand ESS projects, which can supplement the intermittency of solar power."

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