REG - Oracle Power PLC - Green Hydrogen Co-Operation Agreement

Oracle PowerAnnouncement

11/10/2021 07:05

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
Naheed Memon


+44 (0) 203 580 4314




Strand Hanson Limited (Nominated Adviser)
Rory Murphy, James Harris, Rob Patrick


+44 (0) 20 7409 3494




Brandon Hill Capital Limited (Joint Broker)
Oliver Stansfield


+44 (0) 203 463 5000




Shard Capital (Joint Broker)
Damon Heath
Isabella Pierre
 
St Brides Partners Limited (Financial PR)
Susie Geliher
Catherine Leftley


+44 (0) 20 7186 9952
 
 
 
+44 (0) 20 7236 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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