Korea Zinc's Australian subsidiary, Ark Energy, and Hanwha Energy, considered a company of the third generation of Hanwha Group, have decided to collaborate on the battery energy storage system (BESS) business in Australia. Hanwha is seen as an ally to Choi Yoon-beom, chairman of Korea Zinc, in the management rights dispute, thereby reaffirming their alliance.
On the 12th (local time), Ark Energy announced that it signed a BESS purchase agreement with Hanwha Energy. Ark Energy is responsible for a project connecting a 500 MW BESS in the northern region of New South Wales (NSW) in Australia. Ark Energy plans to provide energy storage services with a maximum power capacity of 275 MW for 8 hours a day and 2,200 MWh for 14 years in NSW.
Ark Energy aims to begin full-scale construction next year, targeting commercial operations in 2027. Ark Energy will oversee the overall project development, while Hanwha Energy will handle the design, procurement, and commissioning of lithium iron phosphate (LFP)-based batteries. The exact contract size has not been disclosed but 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, entered into a mutual equity investment agreement worth $32.4 million (approximately 47.2 billion won). That same year, Hanwha Impact invested in Korea Zinc and signed an agreement for partnerships in hydrogen and renewable energy.
This large-scale contract is expected to accelerate the initial public offering (IPO) of Hanwha Energy. Hanwha Energy is currently in the process of selecting an underwriter.
Hanwha Group has an equity structure that flows from the third generation of owners to Hanwha Energy and Hanwha Impact. Hanwha Energy is 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 engages in eco-friendly energy businesses such as wind power and hydrogen. CEO Choi Joo-won, the cousin of Chairman Choi Yoon-beom, is leading the company.