LONDON (ShareCast) - (Sharecast News) - Natural resources project developer Oracle Power has signed a non-exclusive cooperation agreement with PowerChina International Group, it announced on Monday, with the objective of jointly developing a green hydrogen production facility in Pakistan.
The AIM-traded firm said green hydrogen, or hydrogen generated from renewable sources, is "widely regarded" as "one of the most important energy sources" to support the transition to a carbon-neutral future.

PowerChina, meanwhile, is one of the largest Chinese state-owned-enterprises, and had partnered with Oracle with the intention to set up a hydrogen facility in Pakistan to produce hydrogen with electrolysers powered by photovoltaics.

The agreement was targeting a 400MW capacity hydrogen plant, with planned hydrogen production of about 150,000 kilograms per day.

Oracle said the government of Pakistan was reviewing proposals from international investors, and had set up a dedicated team to review options and strategy, while PowerChina had reported its interest to the government in China, meaning the project was expected to receive bilateral support through the CPEC programme.

PowerChina was also working on a technical pre-feasibility, with both parties having started collaborating with their respective governments for the required support.

"Green hydrogen is potentially the single most important tool the international community has in our collective bid to transition to a carbon neutral future," said Oracle chief executive officer Naheed Memon.

"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."

Memon said he was "delighted" that the company had entered into the agreement with PowerChina, given PowerChina's position and experience in the field of energy and power development and contracting.

"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 the fourth quarter of 2021."

At 1422 BST, shares in Oracle Power were up 14.27% at 0.38p.

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