Arc Energy, a subsidiary of Korea Zinc's renewable energy and green hydrogen business in Australia, signed a long-term energy service contract with the local State Governments.
According to Korea Zinc on the 8th, Arc Energy recently signed a long-term energy service agreement (LTESA) with the New South Wales State Governments in Australia for the "Bowmans Creek Battery Energy Storage System (BESS) project."
Under the contract, Arc Energy secured a stable revenue base for 10 years from the facility's commercial operation date.
The BESS project has a power capacity of 250 MW and is a long-duration storage facility that can store and discharge about 2,000 MWh of energy for eight hours. It is expected to contribute to stable power supply by storing electricity generated from renewable energy during daytime and supplying it at night or during peak demand hours.
Arc Energy said, "Following the Richmond Valley BESS project, this contract further solidifies our standing as a specialized renewable energy company in Australia." The Richmond Valley project has a power capacity of 275 MW and is aiming for commercial operation next year.
A Korea Zinc official said, "The signing of this long-term contract recognizes the strategic direction and technological excellence of our subsidiary Arc Energy's renewable energy business," adding, "Korea Zinc will continue to strengthen its medium- to long-term growth engines, including the troika drive businesses such as eco-friendly energy and the U.S. Smelter project."