LOI to be Issued for Green Hydrogen Project
3 August 2022
Oracle Power PLC
("Oracle", the "Company" or the "Group")
LOI to be Issued for Green Hydrogen Project:
Approval an Important Step in Development of 1,200MW Power/Green Hydrogen Project
Oracle Power PLC (AIM:ORCP), the international natural resources project developer, is pleased to announce that the Company has received a letter from the Directorate of Alternative Energy of the Government of Sindh confirming that it will issue a Letter of Intent ("LOI") to Oracle regarding the establishment of a 1,200MW hybrid solar/wind, green hydrogen/power project (the "Project") in Pakistan, being advanced by the Company's joint venture company, Oracle Energy Limited ("Oracle Energy"), subject to the provision of a US$600,000 performance guarantee by Oracle Energy.
The LOI is expected to provide that the developer of the Project can produce green hydrogen from a 400MW capacity electrolyser facility and renewable power for business-to-business usage, for possible sale to utilities and for other uses. Oracle Energy plans to progress the other aspects of project development including the technical, financial and investment parameters of the Project and the Company will make further announcements in due course.
Naheed Memon, CEO of Oracle, commented:
"I am delighted to report that our green hydrogen initiative in Pakistan has received confirmation that it will receive the consent of the Government of Sindh through the issuance of an LOI, subject to the provision of a bank guarantee. This is a defining moment for Oracle and our joint venture company, which also has the potential to transform the landscape of the energy industry in Pakistan through the setting up of a 400 MW green hydrogen production facility powered by a 1200 MW hybrid power plant. Such a green hydrogen plant would be able to produce up to 55,000 tonnes of green hydrogen pa at full capacity.
"I have been clear in my conviction that green hydrogen has the ability to revolutionise the energy, industrial and power sector, and Oracle has been working hard to secure the necessary relationships over recent months to support the development of our project, and also to commercialise it on a large scale. We will embark on detailed technical and financial feasibilities, and are in advanced dialogue with technology providers, equipment suppliers and consultants. We are also now going to move ahead with further discussions with buyers and users of green hydrogen and green ammonia in the region and in Europe.
" I would like to take this opportunity to thank both the Government of Sindh for its vision and recognition of the strategic importance of this project, and also His Highness Shaikh Ahmed Dalmook Al Maktoum for
his support and determination to make Pakistan a green hydrogen production hub by setting up one of the largest green hydrogen production facilities in the region."
*ENDS*
For further information please contact:
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Oracle Power PLC Naheed Memon
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+44 (0) 203 580 4314 |
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Strand Hanson Limited (Nominated Adviser) Rory Murphy, James Harris, Rob Patrick
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+44 (0) 20 7409 3494 |
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St Brides Partners Limited (Financial PR) Susie Geliher, Catherine Leftley
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+44 (0) 20 7236 1177
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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.
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