TIDMORCP
RNS Number : 5551O
Oracle Power PLC
11 October 2021
11 October 2021
Oracle Power PLC
("Oracle", the "Company" or the "Group")
Green Hydrogen Co-Operation Agreement with PowerChina
International Group Ltd
Oracle Power PLC (AIM:ORCP), the international natural resources
project developer, is pleased to announce that it has signed a
non-exclusive co-operation agreement (the "Agreement") with
PowerChina International Group Ltd ("PowerChina") with the
objective of jointly developing a green hydrogen production
facility in Pakistan.
Highlights
-- Green hydrogen, hydrogen that is generated from renewable
sources, is widely regarded as one of the most important energy
sources to support the transition to a carbon neutral future
-- Green hydrogen is becoming a competitive fuel source in
multiple sectors, including steel and fertiliser production, cars,
power generation, long-range shipping and aviation
-- PowerChina, one of the largest Chinese
state-owned-enterprises, has partnered with Oracle, with the
intention to set up a hydrogen facility in Pakistan to produce
hydrogen with electrolysers powered by photovoltaics
-- Targeting a 400MW capacity hydrogen plant, with planned
hydrogen production of approximately 150,000 kg per day
-- The Government of Pakistan is reviewing proposals from
international investors and has also set up a dedicated team to
review options and strategy
-- PowerChina has reported its interest to its government in
China and the project is expected to receive bilateral support
through the CPEC programme
-- PowerChina is working on a technical pre-feasibility and both
parties have begun collaborating with their respective governments
for required support.
Naheed Memon, CEO of Oracle, commented:
"Green hydrogen is potentially the single most important tool
the international community has in our collective bid to transition
to a carbon neutral future. I am delighted to announce our
agreement with PowerChina as we explore options of jointly
developing a green hydrogen facility in Pakistan, which would
represent the first production facility of its kind in the country
and could support multiple industries including steel and
fertiliser production, power generation, shipping and the aviation
industry.
"Green hydrogen is already high on the agenda for many
countries, including India and many of the Gulf nations, however
this agreement would make Oracle a first mover in Pakistan, a
jurisdiction which has abundant renewable resource and land
available. I am delighted that we have entered into an agreement
with PowerChina, given PowerChina's position and experience in the
field of energy and power development and contracting. We jointly
plan to set up a 400MW capacity hydrogen plant to produce
approximately 150,000 kg of green hydrogen per day.
"I believe that green hydrogen would provide a highly valuable
additional pillar to our portfolio of assets, which now includes
our two highly prospective gold properties in Western Australia and
our proposed combined mine, mine mouth power plant and proposed
coal gasification to urea project in the Sindh Province of
Pakistan. We look forward to providing further updates regarding
the development of our green hydrogen initiative following the
publication of PowerChina's technical pre-feasibility study, which
is expected in Q4 2021."
Further Information
Oracle and PowerChina (together the "Parties") have agreed to
co-operate and collaborate to explore feasible options to jointly
develop a green hydrogen project (the "Project") and, subject to
further feasibility studies, analysis and technological advances,
the Project would:
-- be strategically located in Jhimpir, Gharo or Keti Bandar on
Pakistan where renewable resource is abundant or wherever such a
Project may be feasible in Pakistan.
-- produce and supply green hydrogen in Pakistan and to the
neighbouring economies of China, South East Asia, Central Asia,
Middle East, North Africa and Europe.
It is recognised by the Parties that the availability of land,
labour and abundant renewable resource makes Pakistan an ideal
location for the setup of a large-scale green hydrogen generation
facility, pivoting the country towards a green hydrogen economy and
to becoming one of the main green hydrogen suppliers for the world
in the future.
In parallel to establishing the technical and commercial
viability of the green hydrogen production at any identified sites,
the Parties will also seek to develop a cost effective and safe
system for the shipment and transportation of green hydrogen.
The supply of hydrogen to potential buyers appears to be very
feasible from Pakistan as it has three world class ports and
customised transport and infrastructure facilities can be developed
in corporation with the Government if required.
The Parties acknowledge that the cooperation initially covers
the areas as listed below:
a. Technical feasibility including the selection of the location for the Project.
b. Commercial feasibility with the aim of ensuring that green
hydrogen is produced at the Project at a viable price to compete in
local and international markets.
c. Seek endorsement of international environmental regulators,
lobbies, and stakeholders to gain financial and market support for
green hydrogen production in Pakistan.
d. Secure governmental support in Pakistan for establishing a
green hydrogen economy and ensure green energy security.
e. Seek development of industrial collaboration with the
assistance of the government and establish a valuable export avenue
for Pakistan.
f. To develop a market for green hydrogen in Pakistan, China and other regions
The Parties shall complement and co-operate with each other in
the conduct of business in such a way that it is mutually
beneficial to both Parties, and shall support each other mainly in
the following areas:
a. PowerChina will conduct a technical pre-feasibility in Pakistan.
b. Oracle shall take a lead in developing partnerships and
arranging project funding for the development of the Project.
PowerChina will also assist in arranging financing and provide
equity if required and approved by its board, for implementation of
the Project.
c. Oracle shall also take a lead in co-ordinating and working
with the Government of Sindh and the Government of Pakistan, to
obtain required support, for setting up a large-scale green
hydrogen production facility.
d. Oracle and PowerChina will sign EPC and/or O&M contracts
for the Project at competitive rates.
Further announcements relating to the Agreement will be made in
due course.
*ENDS*
For further information:
Oracle Power PLC +44 (0) 203 580
Naheed Memon 4314
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409
Rory Murphy, James Harris, Rob Patrick 3494
Brandon Hill Capital Limited (Joint Broker) +44 (0) 203 463
Oliver Stansfield 5000
Shard Capital (Joint Broker)
Damon Heath
Isabella Pierre
St Brides Partners Limited (Financial +44 (0) 20 7186
PR) 9952
Susie Geliher +44 (0) 20 7236
Catherine Leftley 1177
About Oracle Power PLC:
Oracle Power PLC is an international natural resource and power
project developer quoted on London's AIM market. The Company holds
two highly prospective gold assets in two globally significant gold
regions of Western Australia. The Northern Zone Project is located
25km east of the major gold mining centre of Kalgoorlie, the home
of the 'Super Pit' mine, the second largest gold mine in Australia,
and the Jundee East Gold Project is located 9km east of Northern
Star's Jundee Gold Mine, one of Australia's largest gold mines.
The Company's initial project is the Thar Block VI Project in
the Thar desert in the south-east of the Sindh province of Pakistan
where the Company is advancing plans for a combined lignite coal
mine, a 1,320MW mine mouth power plant and a proposed coal
gasification to urea project.
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