TIDMORCP
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 km(2)) ("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 G
haro-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
CO(2) 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:
O racle Power
N aheed Memon (Chief Executive Officer) +44 (0) 203 580 4314
Strand Hanson Limited (Nominated Adviser & Broker)
Rory Murphy, Matthew Chandler, Rob Patrick +44 (0) 20 7409 3494
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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END
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November 28, 2022 02:00 ET (07:00 GMT)
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