Land Lease for GH Project28 Nov 2022 07:07
Oracle Power PLC (AIM: ORCP), a developer of green hydrogen production through its joint venture Oracle Energy Limited ("Oracle Energy"), is pleased to announce the acquisition by Oracle Energy of State land by way of a long lease for 30-years ("the Lease Acquisition") with the Government of Sindh, for a land package of 7,000 acres (approximately 28.3 km²) ("the land package") located in the Thatta district, Sindh, south-east ****stan, where its flagship Green Hydrogen Project (or the "Project") will be located. The Company's partner, His Highness Sheikh Ahmed Dalmook Al Maktoum, who owns 70% of Oracle Energy through Kaheel Energy FZE, is an active investor and developer of a number of power generation projects across the Middle East, Asia and Africa.
Oracle Energy's Green Hydrogen Project would be ****stan's first producer of green hydrogen, with an initial capacity to produce 55,000 tonnes annually, and be one of the largest hydrogen projects in the Middle East and Asia.
Green hydrogen is differentiated from other types of hydrogen as it is powered exclusively by renewable energy sources and is produced through water electrolysis. Hydrogen and its by-product ammonia are key constituents for critical sectors including manufacturing, transportation, power generation and agriculture.
Lease Agreement
Oracle Energy has paid an initial consideration of US$1,830,000 (split 70/30 between His Highness Sheikh Ahmed Dalmook Al Maktoum and Oracle Power respectively) for the first 10 years for the Lease Acquisition, which is for a minimum of 30 years. Further payments are made for every further ten year period, with the next payments due in 2033 and 2043, and these would double per every 10 years.
The Project site in Sindh is within a highly attractive, strategic region in southern ****stan, located within the Gharo-Jhimpir wind corridor, where over 1 GW of renewable power has been constructed and commissioned, of which 350 MW commissioned power lies within a 10 km radius of the Project.
Beyond access to ****stan's national grid, the Project has immediate proximity to existing infrastructure, including access to water in the form of Karachi's largest freshwater reservoir, and established rail and road infrastructure, which connect to ****stan's two largest ports - Karachi Port and Port Qasim.
Green Hydrogen Project
Oracle Energy's flagship Green Hydrogen Project is targeting annual production of 55,000 tonnes of Green Hydrogen (equivalent to the production of 150,000 kg of hydrogen per day). Oracle Energy intends to supply its production to local industries supporting manufacturing, fertiliser production, gas utilities, transport and power generation, and also to export to European and Asian markets.
The Project plans the development of solar and wind power facilities with a combined output of 1.2 GW hybrid power from proposed capacity 700MW solar and 500MW wind plants, along with a battery storage park of up