REG - Oracle Power PLC - Land Lease for Green Hydrogen Project

Oracle PowerAnnouncement

28/11/2022 07:00

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RNS Number : 7015H  Oracle Power PLC  28 November 2022

28 November 2022

 

Oracle Power PLC

("Oracle", the "Company" or the "Group")

Acquisition of Land Lease for Green Hydrogen Project

 

Oracle Power PLC (AIM: ORCP), a developer of green hydrogen production
through its joint venture Oracle Energy Limited ("Oracle Energy"), is pleased
to announce the acquisition by Oracle Energy of State land by way of a long
lease for 30-years ("the Lease Acquisition") with the Government of Sindh, for
a land package of 7,000 acres (approximately 28.3 km²) ("the land
package") located in the Thatta district, Sindh, south-east
Pakistan, where its flagship Green Hydrogen Project (or the
"Project") will be located. The Company's partner, His Highness Sheikh
Ahmed Dalmook Al Maktoum, who owns 70% of Oracle Energy through Kaheel
Energy FZE, is an active investor and developer of a number of power
generation projects across the Middle East, Asia and Africa.

 

Oracle Energy's Green Hydrogen Project would be Pakistan's first producer
of green hydrogen, with an initial capacity to produce 55,000 tonnes annually,
and be one of the largest hydrogen projects in the Middle East and Asia.

 

Green hydrogen is differentiated from other types of hydrogen as it is
powered exclusively by renewable energy sources and
is produced through water electrolysis. Hydrogen and its
by-product ammonia are key constituents for critical sectors including
manufacturing, transportation, power generation and agriculture.

 

Lease Agreement

 

Oracle Energy has paid an initial consideration of US$1,830,000 (split 70/30
between His Highness Sheikh Ahmed Dalmook Al Maktoum and Oracle Power
respectively) for the first 10 years for the Lease Acquisition, which
is for a minimum of 30 years.  Further payments are made for every
further ten year period, with the next payments due in 2033 and 2043, and
these would double per every 10 years.

 

The Project site in Sindh is within a
highly attractive, strategic region in southern
Pakistan, located within the Gharo-Jhimpir wind corridor, where over 1 GW
of renewable power has been constructed and commissioned, of which 350 MW
commissioned power lies within a 10 km radius of the Project.

 

Beyond access to Pakistan's national grid, the Project has immediate
proximity to existing infrastructure, including access to water in the
form of Karachi's largest freshwater reservoir, and established rail and road
infrastructure, which connect to Pakistan's two largest ports - Karachi
Port and Port Qasim.

 

 

Green Hydrogen Project

 

Oracle Energy's flagship Green Hydrogen Project is targeting annual
production of 55,000 tonnes of Green Hydrogen (equivalent to the production
of 150,000 kg of hydrogen per day).  Oracle Energy intends to supply its
production to local industries supporting manufacturing, fertiliser
production, gas utilities, transport and power generation, and also to
export to European and Asian markets.

 

The Project plans the development of solar and wind power facilities with a
combined output of 1.2 GW hybrid power from proposed capacity 700MW solar and
500MW wind plants, along with a battery storage park of up to 450 MW, to
ensure the continuous production of hydrogen throughout the year. Application
for the renewable hybrid plant to be connected to the grid would be made,
fulfilling two specific objectives: for the sale/exchange of
surplus/shortfall renewable energy into the grid, and the supply of energy to
power Oracle Energy's Green Hydrogen and green ammonia production facility.

 

 

Market for Green Hydrogen

 

Domestic hydrogen production would allow Pakistan to reduce its reliance
on imported energy resources and fossil fuels and cut its
CO² emissions - Pakistan is targeting 30% of its energy requirements from
renewable sources by 2030 - and the production of Green Hydrogen would
provide a fully sustainable and renewable energy source for industrial use.

 

Oracle Energy has made rapid progress in the development of the Project to
date. In October this year, it
appointed thyssenkrupp Uhdeto ("thyssenkrupp") to lead the technical and
commercial feasibility study for the Project, due to be released in
H1 2023. The Company is in advanced discussion with multiple partners
across the value chain and has signed MoU's and non-exclusive cooperation
agreements including with the green hydrogen certifier, TÜV SÜD. It is also
in advanced discussions with potential offtake customers.

 

Naheed Memon, CEO, Oracle Power commented:

"The signing of the 30-year lease in Pakistan's most advanced region for the
development of renewable energy marks a critical milestone in the development
of Oracle Energy's Green Hydrogen Project.  The sizeable site provides all
the key ingredients needed to build a hydrogen project of
this significant scale: access to unlimited renewable energy and water
sources, as well as excellent transportation and transmission infrastructure.

 

Our financial partnership with His Highness Sheikh Ahmed Dalmook Al
Maktoum, as well as with thyssenkrup, TÜV SÜD and other leading
international companies, provides Oracle Energy with a substantial advantage
to build what would be Pakistan's first ever large scale green hydrogen
plant.

 

We will be commencing on site project and environmental studies as we rapidly
move forward to establish ourselves as a supplier of sustainable and vital
green energy fuel.  Oracle is committed to
delivering clean, cost-effective energy solutions, of which clean
hydrogen would be a critical contributor. We look forward to becoming a
significant producer of green energy in the region, and to supplying world
markets."

 

His Highness Sheikh Ahmed Dalmook Al Maktoum stated:

 

"Oracle Energy is moving rapidly towards its next phase of development with
the securing of an ideal location for the Green Hydrogen Project in the
Gharo-Jhimpir corridor.  The Project addresses one of the most important
issues facing the planet at the moment.  The provision of Green Hydrogen is
rapidly gaining recognition globally as one of the solutions to transitioning
from fossil to zero carbon energy generation."

 

-ENDS-

For further information:

 Oracle Power                                                                     +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

 Bobby Morse / 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.

 

Oracle Energy has been set up as the project development company and is funded
on a 70:30 basis by Kaheel Energy (100% owned by His Highness Shaikh Ahmed
Dalmook Al Maktoum) and Oracle Power respectively.  The project development
company provides a vehicle to support the accelerated development of the green
hydrogen project to meet the growing international and domestic demand of
green hydrogen and clean energy.

 

The Company also continues to advance towards the development of its Thar
Block VI Project in south-east Pakistan into a mine, a power plant and a
proposed coal gasification 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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