REG - Oracle Power PLC - Completion of Green Hydrogen Feasibility Study

Oracle PowerAnnouncement

12/09/2023 07:00

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RNS Number : 0813M  Oracle Power PLC  12 September 2023

12 September 2023

Oracle Power PLC

("Oracle" or the "Company")

 

Completion of Technical & Commercial Feasibility Study

re: Green Hydrogen and Ammonia Project

 

Study supports the development of a 400MW capacity green hydrogen production
facility

 

Oracle Power PLC (AIM: ORCP), an international project developer, is pleased
to announce the completion of its technical and commercial feasibility study
(the "Study"), undertaken by leading international construction engineering
company, thyssenkrupp Uhde, relating to its green hydrogen and green ammonia
project (the "Project") in Pakistan.

 

The Project, which is being developed by the Company's joint venture company,
Oracle Energy Limited ("Oracle Energy"), is targeting a 400MW capacity green
hydrogen production facility, with annual production of 55,000 tonnes of green
hydrogen. Located in the designated wind corridor in the province of Sindh in
southern Pakistan, the Project is expected to deploy 700MW of solar and 500MW
of wind power to produce green hydrogen.

 

As part of the Study, hydrogen production and ammonia production/reconversion
capacities were determined and confirmed based on 700MW of solar and 500MW of
wind power capacity and profile. The required power input for approximately
140 tonnes/day of green hydrogen production was estimated to be 360MW of
electrolyser net capacity. A detailed techno-economic modelling study was
performed providing cost estimates for the complete chemical plant's (the
"Plant") OPEX and CAPEX, processes and Plant layout, project execution
schedule, technology information and carbon intensity of the hydrogen value
chain.

 

During the Study, various factors were considered, such as gaseous and liquid
hydrogen production, ammonia synthesis and cracking, optimal location for the
renewable and chemical plant, battery in island mode vs. excess renewable
energy exchange with grid, and cost-effective water sourcing from a nearby
source for green hydrogen and green ammonia production. The Study also
assessed production scenarios for the domestic market and transport to Asia
(China, Japan, Korea), in addition to European markets.

 

Dr. Naveed Akhtar, Hydrogen & Fuel Cell Industry Expert and Chief of
Technology (Hydrogen) for Oracle, commented: "The Study's results are very
encouraging and on a par with industry expectations as observed in other green
hydrogen projects announced worldwide."

 

Following successful completion of the Study, Oracle Energy will now proceed
with negotiations for firm offtake agreements with selected partners and
finalise ongoing joint venture/equity partnership discussions. In parallel,
Oracle Energy's team is focused on arranging the next steps for front-end
engineering and design ("FEED") work for the planned Plant, including,
hydrogen production facility, hydrogen compression, liquefaction and storage
facility, ammonia synthesis and cracking facility. Once completed, this will
take the Project into the next phase of the pre-Final Investment Decision
("FID") stage.

 

CEO of Oracle, Naheed Memon, commented: "A successful and positive feasibility
study for green hydrogen and green ammonia, contributes significantly to
de-risking the Project, and provides a clearer pathway for further accelerated
development activities. Furthermore, having this study authored and ratified
by thyssenkrupp Uhde, the gold standard bearers in the development of such
plants, provides us and our prospective partners with a great deal of
confidence.

 

"We move into a highly active period as we work towards completing power and
grid interconnectivity feasibility studies by Q4 2023 in collaboration with
State Grid Corporation of China, as well as geotechnical and environmental
studies soon after, leading into the FEED stage, and finalisation of the
investment and lender consortium."

 

*ENDS*

 

For further information on Oracle Power PLC, visit the Company's
website http://www.oraclepower.co.uk (http://www.oraclepower.co.uk/)  or
contact:

 

Oracle Power PLC

Naheed Memon - CEO
                               +44 (0) 203 580 4314

 

Strand Hanson Limited (Nominated Adviser & Joint Broker)

Rory Murphy, Matthew Chandler, Rob Patrick
            +44 (0) 20 7409 3494

 

Global Investment Strategy UK Limited (Joint Broker)

Samantha
Esqulant
+44 (0) 20 7048 9432

 

St Brides Partners Limited (Financial PR)

Susie Geliher, Isabel de
Salis
+44 (0) 20 7236 1177

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

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