Ark Energy has secured a financial investment decision for its USD 907.5 billion Richmond Valley Solar Farm and Battery Energy Storage System, clearing the way for what will be the company's first build-to-own project to move into construction in the northern rivers region of New South Wales.

Board Approval and Financing Structure

The financial investment decision was approved at an Extraordinary Board Meeting of parent company Korea Zinc in Seoul on 21 July 2026. The meeting resolved to back a financing package comprising USD 409.1 million in equity funding and USD 499.8 million in debt financing, together covering the full project cost.

Ark Energy Chief Executive Michael Choi described the decision as a strong endorsement from Korea Zinc of the project's commercial credentials.

"This approval represents a strong endorsement from Korea Zinc and confirms its continued commitment to supporting the Richmond Valley project and Ark Energy's growth ambitions," Choi said. "We are thrilled to have reached this major milestone and look forward to moving the project into the next phase of financial close and construction."

The Richmond Valley project is the first in Ark Energy's development portfolio to reach this stage, distinguishing it from other assets the company has worked on in a build-to-own capacity.

What the Project Will Deliver

The financing will fund the priority stage of the hybrid project, which consists of a 200 MW AC solar farm paired with a long-duration lithium-iron phosphate battery energy storage system. That BESS will carry a power capacity of up to 275 MW and a storage capacity of 2,200 MWh, making it a substantial addition to the New South Wales grid.

The site is located approximately 25 kilometres south of Casino in the Northern Rivers region of New South Wales. Beyond its generation and storage capacity, the project is expected to support more than 850 direct and indirect jobs during peak construction and generate approximately USD 125.7 million in expenditure in the local area.

Community benefit funding has been structured at USD 593.40 per installed megawatt of solar generation and will run for the life of the project. Environmental commitments include the establishment of a new 30-metre-wide biodiversity corridor and the planting of native species to improve ecological connectivity between the nearby Ellangowan and Bungawalbin State Forests.

Four Years From Development to Decision

Ark Energy described the FID as the result of a four-year development process during which it secured planning and environmental approvals, grid connection, and government backing through a Long-Term Energy Service Agreement under the NSW Electricity Infrastructure Roadmap's incentive scheme.

The project was awarded its Long-Term Energy Service Agreement in December 2023. In March 2025, it was listed on the Australian Government's National Renewable Energy Priority List. That same month, Ark Energy signed a supply agreement for the battery system with Hanwha Energy.

Planning approval from the NSW Government followed in October 2025, and the Australian Department of Climate Change, Energy, the Environment and Water granted approval without conditions under the Environment Protection and Biodiversity Conservation Act 1999 in December 2025. Grid connection approval came in June 2026, less than two months before the board convened to approve the investment decision.

An Early Contractor Involvement agreement was signed with Elecnor Australia in September 2025, locking in the contractor ahead of the formal construction phase.

Supply Chain and Contractor Arrangements

The project's battery energy storage system will be supplied by Hanwha Energy under the agreement signed in March 2025. The ECI agreement with Elecnor Australia, executed in September 2025, positions the contractor to transition into full construction once financial close is reached.

Elecnor Australia's involvement through the early contractor engagement process reflects an approach increasingly used on large-scale renewable energy infrastructure projects to allow contractors to contribute to planning and design prior to the formal commencement of construction work.

Government Backing and Regulatory Pathway

The project carries backing at both state and federal levels. Its inclusion in the National Renewable Energy Priority List signals recognition from the Australian Government of its significance to the country's clean energy transition.

The LTESA under the NSW Electricity Infrastructure Roadmap provides the project with long-term revenue support, a structure designed to underpin financing for large-scale renewable and storage projects in New South Wales.

The project's grid connection approval, granted in June 2026, was the final regulatory piece required before the investment decision could proceed. The sequence of approvals, planning, environmental, grid connection, and then FID unfolded over roughly eight months between October 2025 and July 2026.

Timeline to Construction and Operation

With FID now secured, Ark Energy is targeting financial close in September 2026. Construction is expected to commence in October 2026, with the project scheduled to begin operations in January 2029.

That timeline would see the Richmond Valley Solar Farm and BESS operational within roughly two and a half years of breaking ground, contributing both renewable electricity generation and network support to the New South Wales electricity system.

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