UK coal and gold mining projects developer Oracle Power Plc (LON:ORCP) on Tuesday offered more details about its plan to set up a 400-MW hydrogen production in Pakistan and said that it is confident of its ability to locally produce cheap green hydrogen.
Back in October, Oracle and PowerChina International Group Ltd signed a non-exclusive cooperation agreement to jointly develop the green hydrogen mega-project in Pakistan, but first, the Chinese state-owned company was to conduct a technical pre-feasibility study.
On Tuesday, Oracle said PowerChina had completed the study, and the presented results state that decreasing costs of wind and solar power in Pakistan could help the project deliver green hydrogen for less than USD 2 (EUR 1.75) per kilogramme.
The partners also estimated the costs of the whole project -- some USD 2 billion (EUR 1.75bn). This amount would cover for the 400-MW hydrogen production plant, 700 MW of solar, 500 MW of wind energy and 450 MW of battery storage to power the electrolysis, according to Oracle’s project presentation.
The goal of the project is for the plant to produce around 150,000 kg of green hydrogen per day, with Pakistani industry and buyers in China, South East Asia, Central Asia, Middle East, North Africa and Europe seen as prospective off-takers.
The location for the proposed plant within Sindh province, as originally planned, is also narrowed down. Oracle thinks of building the facilities in Thatta district on 7,000 acres (28.33 sq km) of land in the Gharo-Jhimpir wind corridor, an area with a gross annual wind power potential of 43,000 MW, according to the company. The planned location is some 120 kilometres (74.6 miles) away from the sea port and 130 kilometres away from Karachi, Oracle said.
As for the next phase of the development, Oracle says it is “actively pursuing technology suppliers and assessing costs across Europe, Japan and South Korea to support the advancement of the project”. The company is in “advanced discussion” with partners and potential solution providers on whether to store and transport hydrogen in liquid form, via liquid organic hydrogen carrier, in ammonia or in gaseous form through pipelines. It says that the Sindh province government supports the project, and infrastructure arrangements are underway.
“We are making good progress in a short time since signing the Co-Operation Agreement with PowerChina,” Oracle CEO Naheed Memon said. “[…] Oracle is in the exciting position to be a first mover in Pakistan and, at the competitive price that is being targeted, is set to be in a strong position in the international market as well.”
(USD 1.0 = EUR 0.875)
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