(Alliance News) - Oracle Power PLC on Monday said that its subsidiary has signed an agreement to develop commercial avenues for a green hydrogen project in Pakistan.
Oracle Power is a Pakistan-focused developer of energy projects.
Its subsidiary, Oracle Energy, has signed a memorandum of understanding with PetroChina International (Middle East) Company Ltd for the cooperation and joint development of commercial avenues for the former's project in Sindh, Pakistan.
Under the terms of the agreement, PetroChina will arrange the potential offtake for the green hydrogen output and carbon credits from the project.
It will also have the right of first refusal to enter into a mutually agreed long term or spot cargo contract to purchase all or part of the green hydrogen and carbon credits.
The memorandum is valid for five years from the date when green hydrogen is first produced, with the option of mutually extending the agreement.
"The signing of this MoU with PCME is another huge step forward as we line up another significant potential offtaker. PetroChina is a large oil and gas trader and can potentially provide our Project a commercially viable route to market," said Oracle Chief Executive Officer Naheed Memon.
"Our green hydrogen project development is advancing swiftly, and this understanding is a testament to the trust some of the largest companies in the world are putting in our ability to develop this important project which could meet regional demand for green hydrogen and green ammonia."
Oracle Power shares were trading 3.1% higher at 0.13 pence each in London on Monday afternoon.
By Holly Beveridge, Alliance News reporter
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