Korea Zinc Chairman Yun B. Choi. (Yonhap)

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Korea Zinc Inc. announced Tuesday that it has picked Hanwha Group as the preferred bidder to supply a battery-included system integration package for its battery energy storage system (BESS) project in Australia.

The project is led by Korea Zinc’s Australian subsidiary, Ark Energy Corp. Its Richmond Valley Energy Storage System was chosen under the New South Wales (NSW) government’s electricity infrastructure support program last year.

In December 2023, Ark Energy formalized the project by signing a long-term energy service agreement with the NSW government.

Naming Hanwha as the preferred bidder underscores the expanding partnership between Korea Zinc and Hanwha Group, which began in September 2022, with a stock exchange between Ark Energy and Hanwha Impact Corp.‘s U.S. subsidiary, Hanwha Power Systems Global Corp. (HPS Global).

The two companies launched a Korea-Australia consortium in July 2023 to explore green hydrogen projects, further strengthening their collaboration in eco-friendly energy initiatives.

“Over the past year, Ark Energy conducted a rigorous competitive bidding process to identify a supplier capable of delivering 2,200 MWh of batteries with an 8-hour discharge capability, meeting Australia’s strict regulatory and certification standards,” Korea Zinc said. “After evaluating domestic and international technologies, Hanwha was selected.”

The companies plan to form a task force by the end of November to finalize contract terms, with the supply agreement expected in early 2024. Korea Zinc estimates the contract’s value at hundreds of billions of won.

Ark Energy will oversee the project’s development, while Hanwha will handle battery design, procurement, and commissioning.

Construction is slated to begin in the third quarter of 2025, with trial operations set for 2026. Once operational, the system will deliver up to 275 MW of power capacity and 2,200 MWh of energy storage services to the NSW electricity market for 14 years, providing up to 8 hours of daily service.