Investment and financing
Korea Zinc's Australian renewable energy subsidiary Ark Energy has confirmed an investment of KRW 1.21 trillion in a local solar and battery energy storage system (BESS) project. With this decision, Ark Energy is moving ahead with the first build-to-own project in its internally developed portfolio, under which it will build and own the assets, and accelerating its expansion in Australia's clean energy market.
According to Ark Energy on November 2, the company recently secured a final investment decision (FID) for the Richmond Valley solar and BESS project in northern New South Wales (NSW), Australia. Its parent company, Korea Zinc, previously held an extraordinary board meeting in Seoul on July 21 and approved an investment of AUD 1.3 billion, approximately KRW 1.21 trillion, in the project. This secured a financing package comprising AUD 586 million in equity and AUD 716 million in debt financing.
Project specifications and delivery schedule
The Richmond Valley project involves building a 200-megawatt (MW) alternating-current (AC) solar power plant and a long-duration lithium iron phosphate (LFP) BESS with up to 275 MW of output and 2,200 megawatt-hours (MWh) of storage capacity, approximately 25 km south of Casino. The BESS can discharge renewable energy continuously for 8 hours, contributing to grid stability. Ark Energy secured planning approval from the NSW government in October 2025, environmental approval from the Australian federal government in December 2025, and approval to connect to the power grid in June 2026. It subsequently signed a Long-Term Energy Service Agreement (LTESA) under the NSW Electricity Infrastructure Roadmap, completing the essential procedures for advancing the project within 4 years.
Partnerships for major equipment and construction are also in place. Ark Energy signed a BESS supply agreement with Hanwha Energy in March 2025. Hanwha Energy will supply the full range of BESS solutions, including batteries and inverters, and approximately 52% of the total investment will go toward the BESS. In September 2025, Ark Energy signed an early contractor involvement (ECI) agreement with the Australian subsidiary of Spanish infrastructure company Elecnor. Financial close is scheduled for the end of 2026, with construction planned to begin in early 2027 and commercial operations in early 2029.
Energy transition and local effects
The investment reflects the alignment of Australia's energy transition policies with Korea Zinc's decarbonization strategy. NSW has set a goal of phasing out coal-fired power generation and transitioning to renewable energy by 2028, and is supporting the deployment of long-duration BESS. The Richmond Valley project is also included on the Australian government's national renewable energy priority list. Korea Zinc is pursuing its RE100 commitment to source 100% of its electricity consumption from renewable energy by 2050, while aggressively expanding renewable energy assets through Ark Energy in Queensland, NSW and Tasmania.
Once the project advances, it will also have positive effects on the local economy and environment. It is expected to create more than 850 direct and indirect jobs during peak construction and generate approximately AUD 180 million in spending in the local community. Environmental conservation measures will also be undertaken, including a 30 m-wide biodiversity corridor connecting nearby state forests. Ark Energy CEO Michael Choi said, "This approval demonstrates Korea Zinc's strong support and confirms its continued commitment to the Richmond Valley project and our growth." Choi added, "We look forward to progressing the project to the next stages of financial close and construction."
Original Korean article: creditnews.kr
English brief by Korea Wind Intelligence, koreawindintel.com
