OCI Holdings, the South Korean solar energy company, has formed an equal partnership with Israel’s Arava Power to develop a major utility-scale solar power plant in Texas.
The joint venture, dubbed the “Sun Roper Project,” will construct a 260MW solar facility in Wharton County, south of Houston. When completed, the project will have capacity to supply electricity to approximately 60,000 households daily according to domestic standards.
Each company will hold a 50% stake in the venture, combining OCI Energy’s expertise in permits, financing, and construction with Arava Power’s experience in developing solar and energy storage projects across Israel and the United States.
The project stands to benefit substantially from U.S. renewable energy incentives. Under the Inflation Reduction Act, the venture could receive a 30% investment tax credit plus an additional 10% “energy community” bonus, potentially refunding up to 40% of investment costs.
OCI Holdings appears to be leveraging this partnership to strengthen its position in the American renewable energy market. According to Lee Woo-hyun, the company’s chairman, OCI Energy has already captured a 15% market share in Texas’ solar generation and development market.
The Texas project represents just the beginning of OCI’s expansion plans. The chairman indicated the company intends to move beyond Texas into other U.S. regions this year as it seeks new revenue streams in America’s growing renewable energy sector.
