Korea Zinc wins approval for renewable energy project in Australia

SEOUL, October 22 (AJP) - Korea Zinc’s push into renewable energy gained new momentum this week after the government of New South Wales, Australia, approved the company’s plan to build a large-scale battery storage system and solar power plant — a centerpiece of its global clean-energy ambitions.

The project, known as the Richmond Valley Battery Energy Storage System (BESS), is being developed by Korea Zinc’s Australian subsidiary, Arc Energy. Once completed, it will feature a lithium iron phosphate battery system with a capacity of 275 megawatts, capable of storing and discharging up to 2.2 gigawatt-hours of electricity over an eight-hour cycle.

Combined with a 200-megawatt solar farm to be built on the same site, the system will store excess renewable energy generated during the day and release it at night or during periods of peak demand — providing stable power to an estimated 175,000 households each year across New South Wales. Commercial operations are scheduled to begin by late 2027.

The project is expected to cut carbon emissions by roughly 370,000 tons annually. Arc Energy will manage the site under a build-own-operate model, with Hanwha Energy supplying the battery systems. Hanwha’s contribution accounts for about 52 percent of the project’s total $1.1 billion investment.

The initiative aligns with New South Wales’s plan to phase out coal-fired power generation by 2028 and accelerate the state’s transition to renewable energy.

In December 2023, Arc Energy was selected as a long-term energy service provider to help stabilize the power grid and participate in the ancillary services market for 14 years — ensuring steady revenue and operational continuity.

The Richmond Valley project marks Arc Energy’s second major renewable development to secure government approval in New South Wales, following the Bowmans Creek wind farm project in 2024. The company is also expanding its renewable portfolio in Queensland and Tasmania, positioning itself as a key player in Australia’s clean-energy transformation.

“This project represents the shared commitment of South Korea and Australia to a sustainable energy future,” said Choi Yoon-bum, chairman of Korea Zinc. “We are dedicated to ensuring the successful completion of the Richmond Valley BESS and solar facilities as part of our broader mission to drive an eco-friendly energy transition.”

* This article, published by Aju Business Daily, was translated by AI and edited by AJP.

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