Apex Clean Energy announced a joint venture with SK Gas, Korea’s energy company, and SK D&D, Korea’s green energy developer, to own energy storage facilities in the United States. The joint venture, SA Grid Solutions, owns Great Kiskadee, a utility-scale battery project under construction in Texas, and anticipates purchasing and advancing additional Apex storage projects in the future.
The joint venture is funded 60% by SK and 40% by Apex, which will manage the construction and subsequent operations and optimization of the facility and any to come.
“Great Kiskadee represents the first project in this shared vision, with the potential for hundreds more megawatts of energy storage to come,” said Ken Young, Apex Clean Energy CEO. “Our collaboration with SK Gas and SK D&D, a first-time partner with shared values, will enable Apex to swiftly accelerate the deployment of our development-stage storage portfolio, comprising more than 13 GW across the United States.”
Byung Suk Yoon, CEO of SK Gas, stated, “I am pleased to collaborate with Apex, a strong local partner in the United States, as well as SK D&D. The energy storage system (ESS) business is indispensable to expanding renewable power generation and offers long-term sustainability and significant social value. By contributing to power supply stabilization and supporting the growth of renewable energy through ESS, we aim to realize our vision of becoming a net-zero solution provider.”
“Based on SK D&D’s capabilities, we are looking forward to entering the rapidly growing U.S. market with SK Gas and Apex,” said Do Hyun Kim, CEO of SK D&D. “We will continue to create new opportunities such as ESS-based power transactions in the U.S. market and contribute to preoccupying the domestic ESS market, strengthening the competitiveness of the power brokerage business.”
Great Kiskadee Storage, located in Hidalgo, Texas, will deliver 100 MW/200 MWh of capacity to the ERCOT grid with a two-hour battery duration; the next project slated for purchased by the JV is of similar size and duration.
Great Kiskadee is expected to begin commercial operations in 2024 and will generate approximately 50 jobs during construction and more than $12.6 million in tax revenue over its lifetime.