Oracle Power PLC (AIM: ORCP), a developer of green hydrogen production through its joint venture Oracle Energy Limited (“Oracle Energy”), announces a strategic Memorandum of Understanding (“MoU”) with China Electric Power and Technology Co., Ltd (“CET”) to potentially develop, finance, construct, operate and maintain Oracle Energy’s Green Hydrogen Project in Thatta, Sindh Province, Pakistan (the “Green Hydrogen Project”).
CET is a wholly-owned subsidiary of State Grid Corporation of China, the largest power producer in the world by revenue in 2021. The MoU with CET, which has a mandate to finance, build, operate and maintain large renewable power generation projects within and outside of China, is focused on accelerating the development of Oracle Energy’s Green Hydrogen Project, which includes the construction of a Hybrid Renewable Energy Production and Storage facility, combining 700MW of solar and 500MW of wind power, and battery storage.
The planned Green Hydrogen Production facility, when fully commissioned, would produce an estimated 150,000kg of hydrogen per day (55,000 tons per annum), and would be one of the largest such projects in Asia (“Green Hydrogen Project”). Feasibility work on the potential production of green hydrogen and green ammonia commenced in Q4 2022 with Thyssenkrupp, the German multinational engineering company, with initial results due in Q2 2023.
The MoU follows the successful acquisition by Oracle Energy of State land by way of a long lease for 30-years with the Government of Sindh, for a land package of 7,000 acres (approximately 28.3 km²).
Commenting on the MoU with CET, His Highness Sheikh Ahmed Dalmook Al Maktoum, who owns 70% of Oracle Energy, and is an active investor and developer of a number of power generation projects across the Middle East, Asia and Africa, stated:
“Oracle Energy’s vision of developing one of the largest green hydrogen production facilities globally has taken significant strides towards being realised through partnering with State Grid of China, the largest power utility in the world. Having acquired the required land to build the project late in 2022, and having made significant progress in planning the construction of the Green Hydrogen Production facility with Thyssenkrupp, Oracle Energy is looking to fast-track the development of the Project by partnering with one of the world’s leading companies, which has both financing capability, as well as significant experience of constructing large power projects globally. We look forward to working closely with CET and our other world class partners in maintaining this extraordinary momentum as we fulfil our stated strategy of being primarily focused on green energy development.”
Commenting on the MoU with Oracle Energy, Mr Wang Bo, Vice General Manager of CET, said:
“We are very excited about the prospect of potentially financing, constructing and operating what will be Pakistan’s largest renewable power facility, a crucial process to bringing the Green Hydrogen Project to the international markets for this crucial source of energy. The value of Oracle Energy’s expertise and knowledge of the Pakistani energy market, combined with the highly respected Partners they already have, will be crucial in making this project not only a reality, but also one of significance from a global perspective.”
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