REG - Oracle Power PLC - Green Hydrogen Project Offtake MoU

Oracle PowerAnnouncement

06/02/2023 07:00

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RNS Number : 9475O  Oracle Power PLC  06 February 2023

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:

 Oracle Power PLC                                                                +44 (0) 203 580 4314

 Naheed Memon (Chief Executive Officer)
 Strand Hanson Limited (Nominated Adviser & Broker)                             +44 (0) 20 7409 3494

 Rory Murphy, Matthew Chandler, Rob Patrick

 Buchanan                                                                       +44 (0) 203 7466 500

 Oonagh Reidy / Abigail Gilchrist                                               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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