Samsung C&T inks sale of solar power complex in Texas

A signing ceremony between Samsung C&T Renewables and Sunraycer Renewables. [Courtesy of Samsung C&T]

The trading arm of South Korea’s Samsung C&T Corp. said Thursday that its U.S. renewable energy subsidiary has signed a sale and development service contract for a 3-gigawatt (GW) solar power and energy storage (ESS) complex in Texas, U.S. The area currently under development spans 2.9 square kilometers.

According to the company, Samsung C&T Renewables signed a deal with Sunraycer Renewables, a U.S. renewable energy investment and operations company.

Under the deal, Samsung C&T will sell a total of 15 renewable energy projects that are currently under development in Texas. They consist of six solar power generation facilities and nine ESS complexes.

Samsung C&T has already secured land rights and has been progressing through the early and mid-stage development phases, including evaluating power production, transmission, and consumption networks.

After the sale, Samsung C&T will continue to provide various development services, including obtaining regulatory permits, until the commencement of construction.

The total capacity of the 15 projects is equivalent to 3 GW, which can meet the power demand of about 600,000 households. The entire project area covers 24.7 square kilometers, which is equivalent to 3,450 soccer fields.

Both parties aim to complete the remaining development and commence commercial operation by 2025 or 2026.

Samsung C&T plans to further expand its solar power development projects with a commitment to expanding its solar and ESS development projects from the current 16.2 GW, comprising 14.9 GW in the U.S. and 1.3 GW in Australia, to 25 GW by 2025.

Samsung C&T’s solar power development business involves acting as a project developer until the commencement of power plant construction, generating and selling intangible assets called solar business rights.

It has steadily grown over the years, recording annual sales profits of $22 million in 2021, $48 million in 2022, and $27 million in the first half of this year.