Ark Energy secures financial investment decision for Richmond Valley project

A resolution seeking the FID was approved at an Extraordinary Board Meeting for parent company, Korea Zinc, in Seoul in July 2026, positioning Ark Energy to receive a financing package comprised of AUS$586 million in equity funding and AUS$716 million in debt financing.

The Richmond Valley solar farm and BESS is the first build-to-own project in Ark Energy’s development portfolio to secure FID.

The milestone is the outcome of a development process whereby Ark Energy managed to secure planning and environmental approvals, grid connection, and government backing through a long-term energy service agreement (LTESA) in four years.

The financing will fund the hybrid project’s priority stage, consisting of a 200 MWac solar farm and a long-duration Lithium-iron phosphate (LFP) BESS with a power capacity of up to 275 MW and storage capacity of 2200 MWh.

Ark Energy CEO, Michael Choi, noted: “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. 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.”

Ark Energy secured planning approval for the project from the NSW Government in October 2025, approval without conditions under the?Environment Protection and Biodiversity Conservation Act 1999 from the Australian Department of Climate Change, Energy, the Environment and Water in December 2025, and grid connection in June 2026.

The project has a LTESA under the NSW Electricity Infrastructure Roadmap’s incentive scheme and is listed in the Australian Government’s National Renewable Energy Priority List.

In March 2025, Ark Energy signed a supply agreement for the BESS with Hanwha Energy and in September 2025 signed an Early Contractor Involvement agreement with Elecnor Australia.

In addition to delivering renewable electricity and supporting the NSW transmission network, the project is expected to support more than 850 direct and indirect jobs during peak construction and generate approximately AUS$180 million in expenditure in the local area. It will deliver community benefit funding of AUS$850 per installed MW of solar generation for the life of the project and a range of commitments designed to leave a lasting, positive legacy for the northern NSW region. Environmental commitments also include the establishment of a new 30 m-wide biodiversity corridor and planting of native species to improve connectivity between the nearby Ellangowan and Bungawalbin State Forests.

Financial close is targeted for September 2026 and construction is expected to commence in October 2026, with operation targeted for January 2029.

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Read the article online at: https://www.energyglobal.com/solar/24072026/ark-energy-secures-financial-investment-decision-for-richmond-valley-project/