OCI Energy, a US-based subsidiary of Korean chemical and battery manufacturer OCI Group, will supply solar power to the San Antonio region of the US state of Texas for 20 years, OCI Holdings, the company's holding unit, announced on Wednesday.

OCI Energy signed the contract for a long-term energy storage project called “Alamo City ESS LLC” with US local energy grid operator CPS Energy on Friday in San Antonio.

The signing event was attended by officials from both sides, including OCI Holdings Chairman Lee Woo-hyun, President of OCI Energy Sabah Bayatili, CPS Energy CEO Rudy D. Garza and San Antonio Mayor Ron Nirenberg.

The Alamo City ESS LLC project aims to offer stable power to the city from 120-megawatt solar power generators and 480-megawatt-hour battery storage facilities that will be set up in southeastern Bexar County, Texas.

The storage capacity is equivalent to the average daily use of 41,000 South Korean households, OCI explained.

The facilities will be completed by late 2026. From then, they will be managed and owned by OCI Energy while providing electricity to San Antonio, according to the 20-year contract. CPS Energy will have operational control of the project.

The project is expected to be highly profitable, with over 40 percent of the funds put into it covered by the US Federal Investment Tax Credit.

“OCI Energy has been active in Texas’ energy market and this contract with a US firm specializing in the energy business, CPS Energy, allowed us to gain the local market’s confidence in our capability to manage a large-scale solar energy project,” Lee said.

“This battery storage project continues the productive relationship between CPS Energy and OCI Energy that has helped our community become a national leader in the renewable solar power industry and preparing for the energy landscape of the future,” the mayor also said in the signing event.

In addition, OCI Energy will offer $250,000 to the University of Texas at San Antonio, as a community contribution.

The funds will be used for students pursuing careers related to renewable energy, according to OCI Holdings.