OCI Holdings, a prominent South Korean company in the solar energy sector, announced on Feb. 24 that its U.S. subsidiary, OCI Energy, has entered into a strategic partnership with Israeli solar company Arava Power. This collaboration aims to establish a joint venture for the ambitious “Sun Roper Project,” a 260MW utility-scale solar power plant in Wharton County, south of Houston, Texas. The project is set to significantly contribute to the renewable energy landscape, with the capacity to supply electricity to 60,000 households per day based on domestic standards.
The joint venture will be equally owned by OCI Energy and Arava Power, each holding a 50% stake. Arava Power, known for its expertise in developing and operating solar and energy storage system projects in Israel and the United States, brings valuable experience to the table. This partnership marks a significant step for OCI Energy, which plans to leverage its expertise in permits, financing, and power plant construction to maximize the project’s profitability.
The “Sun Roper Project” is strategically positioned to benefit from the U.S. Inflation Reduction Act (IRA), which offers a 30% investment tax credit (ITC) and an additional 10% energy community bonus. These incentives could result in up to a 40% investment cost refund, enhancing the project’s financial viability. The IRA’s provisions are designed to promote renewable energy through substantial financial incentives, making solar projects like this one particularly attractive.
Lee Woo-hyun, chairman of OCI Holdings, expressed optimism about the venture, stating, “OCI Energy has grown to become the leading company with a 15% market share in the solar power generation and development market in Texas, USA.” He further emphasized the company’s strategic vision, adding, “This year, we will expand our solar power business to other regions beyond Texas to generate new revenue.”
