Korea Zinc's Australian subsidiary, Ark Energy, and Hanwha Energy, which is considered a company led by the third generation of the Hanwha Group, have decided to jointly pursue a battery energy storage system (BESS) business in Australia. Hanwha is regarded as an ally of Choi Yoon-beom, the chairman of Korea Zinc, in the management rights dispute, thus reaffirming their alliance.
On the 12th (local time), Ark Energy announced that it had signed a BESS purchase agreement with Hanwha Energy. Ark Energy is responsible for a project linking a 500 megawatt solar power generation facility with the BESS in the northern region of New South Wales (NSW), Australia. Ark Energy plans to provide a maximum power capacity of 275 megawatts and energy storage services of 2,200 megawatt-hours for 14 years in NSW.
Ark Energy aims to begin full-scale construction next year, targeting commercial operation in 2027. Ark Energy will oversee the overall project development, while Hanwha Energy will be responsible for the design, procurement, and commissioning of lithium iron phosphate (LFP)-based batteries. Although the exact size of the contract has not been disclosed, it is estimated to be worth several hundred billion won.
Korea Zinc and Hanwha have collaborated in the eco-friendly energy industry. In September 2022, Ark Energy and Hanwha Impact's U.S. subsidiary HPS Global signed a mutual equity investment agreement worth $32.4 million (approximately 47.2 billion won). The same year, Hanwha Impact invested in Korea Zinc and signed a business partnership agreement related to hydrogen and renewable energy.
With the signing of this large-scale contract, Hanwha Energy is expected to accelerate its initial public offering (IPO). Hanwha Energy is currently in the process of selecting underwriters.
Hanwha Group has an equity structure that connects the third generation of owners to Hanwha Energy and then to Hanwha Impact. Hanwha Energy is fully owned by Kim Dong-kwan, vice chairman of Hanwha Group (50%), Kim Dong-won, president of Hanwha Life (25%), and Kim Dong-sun, vice president of Hanwha Galleria (25%), making it a key affiliate in the succession of Hanwha Group.
Ark Energy is a 100% subsidiary of Korea Zinc, established in Australia in January 2021. It is engaged in eco-friendly energy businesses such as wind power and hydrogen. Choi Joo-won, the cousin of Chairman Choi Yoon-beom, leads the business.