Oracle Power Announces Raise in Funding and Agreement for Its Pakistani Green Hydrogen Initiative

By February 6, 2023 8   min read  (1564 words)

February 6, 2023 |

Fuel Cells Works, Oracle Power Announces Raise in Funding and Agreement for Its Pakistani Green Hydrogen Initiative

£500,000 placing to support the Green Hydrogen project development

Oracle Power PLC (AIM: ORCP), a leading developer of Green Hydrogen, is pleased to announce that it has successfully raised gross proceeds of £500,000 by way of an oversubscribed placing of 294,117,647 new ordinary shares of 0.1p each in the Company (“Ordinary Shares”) (the “Placing Shares”) at a price of 0.17p per Ordinary Share (the “Placing Price”) (the “Placing”).

The net proceeds of the Placing will be utilised primarily to support the advancement of the Company’s Green Hydrogen project (the “Project”) through the joint venture with His Highness Sheikh Ahmed Dalmook Al Maktoum.

Oracle announced on 28 November 2022 the acquisition by Oracle Energy of State land by way of a long lease located in the Thatta district, Sindh, south-east Pakistan, where its flagship Green Hydrogen project will be located.  The Company’s partner, His Highness Sheikh Ahmed Dalmook Al Maktoum, who owns 70% of Oracle Energy, is an active investor and developer of a number of power generation projects across the Middle East, Asia and Africa.

The Project would be Pakistan’s first commercial Green Hydrogen production facility, with an initial capacity to produce 55,000 tonnes annually, which would be one of the largest hydrogen projects in the region.

Green Hydrogen is differentiated from other types of hydrogen as it is powered exclusively by renewable energy sources and is produced through water electrolysis. Hydrogen and its by-product ammonia are key constituents for critical sectors including manufacturing, transportation, power generation and agriculture.

The Project site in Sindh is within a highly attractive, strategic region in southern Pakistan, located within the Gharo-Jhimpir wind corridor, where over 1 GW of renewable power has been constructed and commissioned.

Beyond access to Pakistan’s national grid, the Project has immediate proximity to existing infrastructure, including access to water in the form of Karachi’s largest fresh-water reservoir, and established rail and road infrastructure, which connect to Pakistan’s two largest ports – Karachi Port and Port Qasim.  Oracle Energy intends to supply its production to local industries supporting manufacturing, fertiliser production, gas utilities, transport and power generation, and also to export to the Middle East, Europe, China and Asia.

The Project is targeting annual production of 55,000 tonnes of Green Hydrogen (equivalent to the production of 150,000 kg of hydrogen per day).  Oracle Energy intends to supply its production to local industries supporting manufacturing, fertiliser production, gas utilities, transport and power generation, and also to export to European and Asian markets.

The Project plans the development of solar and wind power facilities with a combined output of 1.2 GW hybrid power from proposed capacity 700MW solar and 500MW wind and battery storage to ensure the continuous production of hydrogen throughout the year.

Oracle Energy has made rapid progress in the development of the Project to date. In October 2022, it appointed thyssenkrupp Uhdeto (“thyssenkrupp”) to lead the technical and commercial feasibility study for the Project, due to be released in H1 2023. The Company is in advanced discussion with multiple partners across the value chain and has signed MOUs and non-exclusive cooperation agreements including with the Green Hydrogen certifier, TÜV SÜD. It is also in advanced discussions with potential offtake customers and financiers.

The Placing has been carried out through Global Investment Strategy UK Limited (“GIS”) and the Company has entered into a placing agreement dated 5 February 2023 (the “Placing Agreement”) with GIS pursuant to which it, as agent for the Company, has procured placees for the Placing Shares at the Placing Price. As part of the Placing, GIS will receive 11,764,706 warrants over new Ordinary Shares, exercisable at the Placing Price for a period of 2 years from the date of the Placing.

Naheed Memon, CEO of Oracle, commented:

“We continue to make great strides in advancing our Green Hydrogen strategy in Pakistan and today’s fundraise will enable us to continue on this upward trajectory. The majority of the funds raised will be used to support the Green Hydrogen initiative through Oracle Energy, whilst also providing us with sufficient working capital to progress the strategies of the other projects in Oracle’s portfolio.

We are now looking toward the next stage in the Project’s development as we move forward with detailed technical and financial feasibilities. With this financial support, combined with that from His Highness Shaikh Ahmed Dalmook Al Maktoum, I am confident we will be able to expedite the development of this ground-breaking and globally significant project.”

Oracle Energy Signs Offtake MoU for Green Hydrogen Project

Oracle Power PLC (AIM: ORCP), a developer of Green Hydrogen production through its joint venture Oracle Energy Limited (“Oracle Energy”), today announces the signing of a Memorandum of Understanding (MoU) between Oracle Energy and Emirates Global Aluminium PJSC (“EGA”), a company jointly owned by state-owned Mubadala Investment Company of Abu Dhabi and the Investment Corporation of Dubai.  The MoU records the intention to discuss and negotiate the potential supply and delivery of approximately 50,000 tonnes of Green Hydrogen, from its flagship Green Hydrogen Project (or the “Project”) in south-east Pakistan.

Memorandum of Understanding

Oracle Energy and Emirates Global Aluminium – a leader in global aluminium production – signed the MoU on 1 February 2023, agreeing to jointly cooperate on a non-binding basis to explore the potential for Oracle Energy to supply and deliver approximately 50,000 tonnes of Green Hydrogen to EGA from its planned Green Hydrogen Project in Pakistan – forming the majority of the Project’s total projected annual output. If negotiations are successful, it is the intention that a binding agreement be signed during the 2023 UN Climate Change Conference (COP28), to be held in the UAE from 30 November to 12 December 2023. Oracle Energy is targeting a total annual output of 55,000 tonnes of high purity Green Hydrogen (equivalent to the production of 150,000 kg of hydrogen per day).

The term of the MoU is for a one-year period from 30 January 2023, during which the parties agree to progress discussions on the off take of Green Hydrogen ahead of COP28. EGA intends to acquire Green Hydrogen and green ammonia as part of its commitment to decarbonise its aluminium production. Replacing natural gas with Green Hydrogen not only decarbonizes the aluminium production process but also improves the energy efficiency of aluminium furnaces using oxy-fuel combustion technologies.

Incorporated in the UAE, Emirates Global Aluminium is owned equally by Mubadala Investment Company, the Emirati state-owned holding company and the Investment Corporation of Dubai – a sovereign investor owned by the Government of Abu Dhabi, which manages a diverse portfolio of assets and investments in the UAE and abroad, to generate sustainable financial returns for its shareholders.

It is a leader in global aluminium production and one of the world’s largest ‘premium’ aluminium producers and the largest company jointly owned by the two Emirates. It operates aluminium smelters in Abu Dhabi and Dubai, an alumina refinery in Abu Dhabi, and a bauxite mine and associated export facilities in the Republic of Guinea.

 Green Hydrogen Project

Oracle Energy, which is a joint venture between Oracle Power and His Highness Sheikh Ahmed Dalmook Al Maktoum, who owns 70% of Oracle Energy through Kaheel Energy FZE, is currently developing a 400MW Green Hydrogen Project. This project, located in the designated wind corridor in the province of Sindh in southern Pakistan, is expected to develop a combined output of 1.2 GW power consisting of 700MW solar, 500MW wind power plus battery storage, to produce its targeted output.

The Project is progressing well, as ThyssenKrupp advances its detailed study and ongoing groundwork continues. It is planned to produce and supply Green Hydrogen in Pakistan and to the Middle East, China, Asia, and Europe.

The availability of land and abundant renewable energy resource makes Pakistan an ideal location to develop a large-scale and economical Green Hydrogen generation facility, pivoting the country towards a Green Hydrogen economy. Green Hydrogen is regarded as a sustainable, green fuel for the future, which will help replace the use of conventional fossil fuels including oil, gas and coal. As its production is scaled up, it is expected to be a domestic and global input and energy source for manufacturing, fertiliser production, gas utilities, transport, aviation and power generation. It can also provide a reliable source of energy for aluminium production while significantly reducing carbon emissions. Green Hydrogen is quickly approaching economic competitiveness due to the falling costs of renewable power and the significant improvement in electrolyser technology as well as ground-breaking innovation in molecule storage and transport.

Naheed Memon, CEO, Oracle Power commented:

“The signing of the MoU with EGA, a sovereign owned global stalwart in the aluminium sector, is a significant step towards mitigation of financing risk for the Green Hydrogen project, as well finding a secure place for our project in the global supply for Green Hydrogen, as heavy industry giants move to decarbonise. Interest from this global player also highlights the significant progress made, to date, on the development of Oracle Energy’s flagship Green Hydrogen Project, which would potentially be one of the largest Green Hydrogen projects in the region.

This MoU is an important collaboration as we move to attain sustainable offtake partners, for our production from our flagship Green Hydrogen project.

  Read the most up to date Fuel Cell and Hydrogen Industry news at FuelCellsWorks

The opportunities for Green Hydrogen production globally, are enormous and as an early mover in Pakistan, we look forward to reaping the fruitful rewards following our flagship Project’s successful deployment and contributing to domestic and regional decarbonisation goals.”


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