REG - Oracle Power PLC - Offtake MoU with PetroChina for Green Hydrogen

Oracle PowerAnnouncement

05/06/2023 07:00

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RNS Number : 5732B  Oracle Power PLC  05 June 2023

5 June 2023

 

Oracle Power PLC

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

 Offtake MoU with PetroChina International for Green Hydrogen

 

Oracle Power PLC (AIM: ORCP), is pleased to announce the signing of a
Memorandum of Understanding (MoU) between its subsidiary Oracle Energy and
PetroChina International (Middle East) Company Limited ("PCME") for
cooperation and joint development of commercial avenues for Oracle Energy's
planned Green Hydrogen Project (or the "Project") in Sindh, Pakistan.

 

PCME has agreed to arrange the potential offtake for the Green Hydrogen output
and carbon credits from the Project. PCME has vast experience in trading of
oil across the world and is desirous to explore and develop its business
through new energy sources such as green hydrogen.

 

Memorandum of Understanding

 

Oracle Energy and PCME signed the MoU to jointly cooperate, on a non-binding
basis,  in the commercialisation of the Project, with Oracle Energy to supply
and deliver Green Hydrogen to PCME from it.   PCME will  arrange offtake
for the Green Hydrogen and arrange for trade of associated carbon credits,
after establishing viability through analysis of feasibility reports of the
Project and subject to price, quality and its board's approval.

 

 

PCME shall have the right of first refusal (ROFR) to enter into a mutually
agreed long term or spot cargo(es) contract to purchase all or part of the
Green Hydrogen and carbon credits from the Project. Oracle Energy shall, prior
to financial close, ask PCME to meet the best offer for a long-term purchase
of all or part of the Green Hydrogen, with or without the carbon credits. In
the event that PCME declines to meet the best offer, the ROFR for PCME shall
lapse. Furthermore, PCME will have the ROFR to match the best offer received
by Oracle Energy in relation to any available spot cargoes and/or any
available carbon credits which have not been agreed to be sold/traded through
any long-term agreement signed before financial close.

 

The MoU is effective from 2 June 2023 and is valid for five years from the
date when the Green Hydrogen is first produced from the Project, with the
option of mutually extending the MoU. The MOU signing was witnessed by a
representative from State Grid Corporation of a China, which recently signed
an agreement with Oracle Energy through CET, its subsidiary, to be a potential
investor and has commenced work on studies.

 

Oracle Energy, which is the  joint venture between Oracle Power and His
Highness Sheikh Ahmed Dalmook Al Maktoum, is currently developing a 400MW
Green Hydrogen Project in Pakistan, with a target output of 55,000 tonnes of
high purity Green Hydrogen.

 

 

 

 

Naheed Memon, CEO of Oracle Power, commented:

"The signing of this MoU with PCME is another huge step forward as we line up
another significant potential offtaker. PetroChina is a large oil and gas
trader and can potentially provide our Project a commercially viable route to
market. Our Green Hydrogen Project development is advancing swiftly and this
understanding is a testament to the trust some of the largest companies in the
world are putting in our ability to develop this important project which could
meet regional demand for green hydrogen and green ammonia."

 

*Ends*

 

 

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) 20 7466 500

 Bobby Morse/ Oonagh Reidy/ Abigail Gilchrist                                   oracle@buchanan.uk.com (mailto:oracle@buchanan.uk.com)

 

 

 

 

 

 

About PetroChina

The Dubai-headquartered PetroChina International (Middle East) Company is an
established oil trader and developer of new energy business opportunities and
is a wholly-owned subsidiary of PetroChina International Co. Ltd, which is, in
turn, is the listed arm of state-owned China National Petroleum Corporation
(CNPC), one of the largest oil and gas producers in Asia.

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