OCI Holdings Launches Large-Scale Energy Storage Project in Texas OCI Holdings' U.S. subsidiary, OCI Energy, has initiated construction on a significant energy storage system (ESS) project in Texas, marking a key step in the company's strategy to secure long-term power sales revenue through direct operation of ESS facilities. The project, known as the Alamo City ESS Project, is being developed in partnership with local energy company CPS Energy. The groundbreaking ceremony, held on May 19, was announced by OCI Holdings, which highlighted the project's scale and its potential impact on the region. The ESS will have a capacity of 120 megawatts (MW) and a storage volume of 480 megawatt-hours (MWh), built on a site spanning approximately 140,000 square meters in Bexar County, San Antonio, Texas. The facility is targeted for commercial operation by 2027, with the expectation that it will meet the electricity demand of around 30,000 households for up to four hours during peak periods. The project is part of a broader initiative by OCI Energy to expand its ESS portfolio, which the company aims to use to complement the intermittency of solar power. A key component of the project is a 20-year long-term storage capacity agreement (SCA) signed with CPS Energy, which ensures the supply of power to the San Antonio area. This agreement is critical for stabilizing revenue streams and aligning with the growing demand for reliable energy storage solutions. Financial incentives play a significant role in the project's viability. The initiative meets the tax credit requirements under the U.S. Inflation Reduction Act (OBAA Act), making it eligible for up to a 30% investment tax credit (ITC) and a 10% energy community bonus.#san_antonio #cps_energy #oci_holdings #oci_energy #bexar_county
