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(Alliance News) - Oracle Power PLC on Tuesday said it completed a technical and commercial feasibility study for its green hydrogen and green ammonia project in Pakistan.
The Western Australia and Pakistan-focused energy projects developer is targeting a 400 megawatt capacity green hydrogen production facility with annual production of 55,000 tonnes of green hydrogen at the project located in southern Pakistan.
It expects the project, which is being developed by joint venture firm Oracle Energy Ltd, to deploy 700 megawatts of solar power and 500 megawatts of wind power to produce green hydrogen.
Undertaken by construction engineering firm thyssenkrupp AG, Oracle Power said the study determined and confirmed hydrogen production and ammonia production/reconversion capacities based on the above input capacities and profile.
Oracle Power said various factors were considered during the study, such as gaseous and liquid hydrogen production, ammonia synthesis and cracking, optimal location for the renewable and chemical plant, battery in island mode compared to excess renewable energy exchange with grid, and cost-effective water sourcing from a nearby source for green hydrogen and green ammonia production.
The study also assessed production scenarios for the domestic market and transport to China, Japan, Korea, alongside European markets.
Oracle Power said Oracle Energy will now begin negotiations for firm offtake agreements with selected partners and finalise ongoing joint venture/equity partnership discussions.
This is alongside focusing on arranging the next steps for front-end engineering and design work for the planned plant, which would include a hydrogen production facility, hydrogen compression, liquefaction and storage facility, ammonia synthesis and cracking facility.
Once completed, Oracle Power said this will take the project to the next phase of the pre-final investment decision stage.
"A successful and positive feasibility study for green hydrogen and green ammonia, contributes significantly to de-risking the project, and provides a clearer pathway for further accelerated development activities. Furthermore, having this study authored and ratified by thyssenkrupp Uhde, the gold standard bearers in the development of such plants, provides us and our prospective partners with a great deal of confidence," said Oracle Power Chief Executive Naheed Memon.
"We move into a highly active period as we work towards completing power and grid interconnectivity feasibility studies by [the fourth quarter of] 2023 in collaboration with State Grid Corp of China, as well as geotechnical and environmental studies soon after, leading into the [front-end engineering and design] stage, and finalisation of the investment and lender consortium."
Shares in Oracle Power were up 8.6% to 0.095 pence each in London on Tuesday morning.
By Greg Rosenvinge, Alliance News reporter
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