Dive Brief:
- South Korea-based OCI Holdings is investing $265 million to expand its U.S. solar value chain through its subsidiary, Mission Solar Energy, the company announced earlier this month.
- The funds will add two gigawatts of solar cell production capacity at Mission Solar Energy’s manufacturing campus in San Antonio, the subsidiary said in a March 20 press release.
- Mission Solar Energy expects to complete the expansion and begin commercial production in the first half of 2026, and the project is slated to create 500 jobs.
Dive Insight:
The company’s latest project comes almost a year after it completed a 200,000-square-foot plant expansion at its San Antonio headquarters and site.
While OCI Holdings is growing its domestic footprint through its U.S. subsidiary, Mission Solar Energy plans to use polysilicon sourced through its parent company’s Malaysia-based chemical subsidiary, OCI TerraSus.
Mission Solar Energy also intends to make the new facility eligible for the advanced manufacturing production credit and 10% investment tax credit under the Inflation Reduction Act.
Texas has been attracting solar projects to the Lone Star State over the past few months.
TMEIC Corp. Americas announced plans last year to expand its footprint in the Houston area with a new utility-scale solar inverter factory. And last week, T1 Energy, formerly Freyr Batter, announced plans to build an $850 million 5-gigawatt solar cell facility in Rockdale, Texas.
Texas is also nationally ranked second for total installed solar capacity, according to a handout by the Solar Energy Industries Association. The state ranks third in solar employment, with 12,421 jobs. Texas is also home to a total of 107 solar manufacturers and 222 solar developers.
However, solar manufacturers may have a hard time establishing facilities in Texas due to pending legislation. State lawmakers have introduced a House and Senate version of a bill that could require renewable energy companies to apply for a permit from the Public Utility Commission of Texas before construction can begin. It would also require wind and solar projects to undergo an environmental impact review conducted by the Texas Parks and Wildlife Department, as well as go through public notices and hearings. Nuclear power and fossil fuel facilities would not be subject to the law.
Industrial power facilities currently do not require this process.
“SEIA and other stakeholders will continue to defend against overly-burdensome siting and permitting legislation,” the solar trade group said on its website, criticizing the bill.
At the federal level, Trump rolled back Biden-era memorandums earlier this month that supported clean energy and solar manufacturing, as well as funding through the Inflation Reduction Act, shifting focus instead to fossil fuels.
