UK coal and gold mining projects developer Oracle Power Plc (LON:ORCP) announced on Monday that it has signed a non-exclusive cooperation agreement with PowerChina International Group Ltd with the goal to jointly set up a 400-MW solar PV-powered green hydrogen production plant in Pakistan.
The roles are split so that the Chinese state-owned giant will be responsible for conducting a technical pre-feasibility in Pakistan, while Oracle will develop partnerships, arrange project funding and work with governmental authorities in the country.
The partners have yet to find a suitable location for their proposed project, through which they want to be able to produce around 150,000 kg of green hydrogen per day. Based on Oracle’s press release, the plant will likely be located within Pakistan’s Sindh province with the towns of Jhimpir, Gharo and Keti Bandar mentioned as possible sites.
Oracle said that both parties recognise that Pakistan is ideally suited to host large-scale green hydrogen production facilities due to its availability of land, labour and abundant renewable resource.
Oracle and PowerChina will assess the project’s commercial viability, and will be looking for green hydrogen off-takers in Pakistan, China and other regions.
According to Oracle, the partnership will aim to secure governmental support in Pakistan to establish a green hydrogen economy and seek to develop industrial collaboration with the government’s assistance, while also working to set up a valuable export avenue.
More announcements about the project and the joint agreement will follow in due course. For now, PowerChina is expected to release its technical pre-feasibility study in the fourth quarter of 2021, Oracle said.
PowerChina International Group Limited is the international business subsidiary of Power Construction Corporation of China (SHA:601669).
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