Green Hydrogen Project Offtake MoU
6 February 2023
Oracle Power PLC
("Oracle" or the "Company")
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.
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. "
For further information:
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O racle Power PLC N aheed Memon (Chief Executive Officer) |
+44 (0) 203 580 4314 |
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Strand Hanson Limited (Nominated Adviser & Broker) Rory Murphy, Matthew Chandler, Rob Patrick
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+44 (0) 20 7409 3494
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Buchanan Oonagh Reidy / Abigail Gilchrist |
+44 (0) 203 7466 500 oracle@buchanan.uk.com |
About Oracle Power PLC
Oracle Power PLC is an international natural resource and power project developer quoted on London's AIM market. The Company currently has two areas of focus: Western Australia and Pakistan. The Company is active in the energy industry in Pakistan and is working to establish a Green Hydrogen production facility through Oracle Energy Limited, a joint venture with His Highness Shaikh Ahmed Dalmook Al Maktoum. The Company's initial project is the Thar Block VI Project in south-east 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. In Australia, its primary focus is the Northern Zone Gold Project, 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. Northern Zone has a current Exploration Target of 200-250Mt at 0.4-0.6g/t Au for between 2.5 - 4.8Moz gold, with drilling being planned to define a maiden inferred JORC resource.
About Emirates Global Aluminium
Emirates Global Aluminium is owned equally by Mubadala Investment Company, the Emirati state-owned holding company - and 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.
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