Oracle Power PLC (LON:ORCP) today unveiled a memorandum of understanding (MoU) with aluminium producer Emirates Global Aluminium PJSC (EGA) for the potential offtake of green hydrogen from its large-scale project in Pakistan.
Oracle Power is developing the 400-MW hydrogen project, expected to be powered by 1.2 GW of new renewables capacity, made up of 700 MW of solar and 500 MW of wind power plus battery storage, through a joint venture called Oracle Energy Ltd. The latter is a partnership with Shaikh Ahmed Dalmook Al Maktoum of Dubai’s Kaheel Energy FZE, which holds 70% of the joint entity.
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The potential customer, EGA, is equally owned by Mubadala Investment Company of Abu Dhabi and the Investment Corporation of Dubai.
Under the MoU, signed on February 1, EGA will explore the potential procurement of about 50,000 tonnes of green hydrogen from the project, which is most of its targeted annual output of 55,000 tonnes, to help decarbonise its aluminium production.
The parties are looking to sign a binding agreement during the COP28 UN Climate Change Conference in the UAE in late 2023.
German engineering company Thyssenkrupp Uhde was in October selected to lead the technical and commercial feasibility study for the hydrogen proposal. The study is currently ongoing.
Separately, Oracle Power said it raised GBP 500,000 (USD 613,000/EUR 560,000) through an oversubscribed placing to support the advancement of the Pakistani green hydrogen project.
(GBP 1 = USD 1.225/EUR 1.120)