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SAN ANTONIO, TEXAS – May 19, 2026 – OCI Energy, the North American renewable energy subsidiary of Korea-based OCI Holdings, announced today that it has officially broken ground on the "Alamo City ESS (Energy Storage System) Project" in Bexar County, Texas.

The ceremony was attended by Charles Kim, President & CEO of OCI Enterprises, OCI's U.S. solar holding company; Sabah Bayatli, President of OCI Energy; Rudy D. Garza, President & CEO of CPS Energy; Dr. Willis Mackey, Vice Chair of the CPS Energy Board of Trustees; Jaehong Park, President of LG Energy Solution Vertech; David Hall, CEO of Elgin Power Solutions; and Sven Wellock, Managing Director at ING. 

The Alamo City ESS project is a large-scale power storage initiative featuring a 120MW of output and 480MWh of storage capacity. Once operational in 2027, the facility is expected to meet the peak electricity demand of approximately 30,000 local households (based on a three-person household) for up to four hours, contributing to grid stability in the greater San Antonio area during periods of high demand.

 The project brings together a coalition of global industry partners to ensure stable execution. ING Capital is leading the financial arrangement, LG Energy Solution Vertech is the battery supplier, and Elgin Power Solutions is providing Engineering, Procurement, and Construction (EPC) services.

 Prior to the groundbreaking, OCI Energy secured a long-term Storage Capacity Agreement (SCA) with CPS Energy, the nation’s largest public power, natural gas, and electric company, serving 1.28 million customers in Texas. Under the 20-year agreement, OCI Energy will provide reliable power storage capacity to support CPS Energy’s grid infrastructure, building on a partnership between the two companies that dates back to 2012.

“Energy storage is a critical component of how we prepare for the future,” said Rudy D. Garza, President & CEO of CPS Energy. “Projects like Alamo City BESS give us the flexibility to meet growing demand, integrate more diverse energy resources, and ensure our community has reliable power when it matters most.”

The project also meets the construction commencement requirements under the OBBB legislation. By breaking ground before July 4, it qualifies for a 30% Investment Tax Credit (ITC) along with an additional 10% Energy Community Bonus, bringing the total potential tax credit to up to 40% of the project's investment cost.

Looking ahead, OCI Holdings plans to shift its business model to enhance long-term profitability. Rather than relying solely on the traditional practice of selling projects at the pre-completion stage, the company aims to retain equity and increase its share of direct operations through joint ventures to secure recurring revenue from power sales.

"We are strategically expanding our utility-scale ESS portfolio to address the intermittency challenges inherent in solar energy," said an OCI Holdings representative. "By increasing our direct operational footprint, we aim to establish a more resilient, long-term revenue model in the North American energy market."

In a related development, OCI Energy finalized a transaction on May 14 to form a 50:50 joint venture with Israeli renewable energy company Arava Power for its 500MW La Salle solar and storage project. Under the new structure, both companies will jointly manage the project across financing, construction, and operation. La Salle is scheduled to break ground later this year, with commercial operations targeted for 2028.