Green Hydrogen

In October 2021, Oracle Power signed a non-exclusive co-operation agreement with PowerChina International Group Ltd. The objective of the agreement is to jointly develop Pakistan’s first green hydrogen production facility.

Green Hydrogen

‘Green hydrogen’ is hydrogen that is generated from renewable sources and is widely regarded as one of the most important energy sources to support the global transition to a carbon neutral future.

It is increasingly becoming a competitive fuel source across multiple sectors, including steel and fertiliser production, cars, power generation, shipping and aviation.

The production of hydrogen is high on the agenda for many countries, including India and a number of the Gulf nations. Pakistan as a jurisdiction has abundant renewable resources and land available, and the facility would be the country’s first, establishing Pakistan as one of the main green hydrogen supplies globally in the future.

The Agreement

Oracle Power’s partner, PowerChina, is one of the largest Chinese state-owned-enterprises. The hydrogen facility in Pakistan is targeting a 400MW capacity hydrogen plant with planned hydrogen production of approximately 150,000kg per day and will produce hydrogen using electrolyses powered by photovoltaics. PowerChina is currently working on delivering a preliminary technical study by Q4 2021.

Pakistan is an ideal location for the planned large-scale green hydrogen generation facility due to the availability of land, labour, and renewable resource.

The project would produce and supply green hydrogen in Pakistan, with a view to export to the neighbouring economies of China, South East Asia, Central Asia, Middle East, North Africa and Europe. Both PowerChina and Oracle Power are seeking to develop a cost effective and safe system for the shipment and transportation of green hydrogen, alongside establishing the technical and commercial viability of its production.

As outlined by the agreement, Oracle Power is to take the lead in developing partnerships and arranging project funding for its development, and in co-ordinating and working with the local Government of Sindh and the Government of Pakistan to obtain the required support to set up the facility.

The Government of Pakistan is reviewing proposals from international investors, such as PowerChina, and has set up a dedicated team to review options and strategy. PowerChina has also reported its interest to its government in China and the project is expected to receive bilateral government support.

Signing Ceremony

On October 23 2021, Oracle Power and PowerChina both attended a ceremonial signing of the non-exclusive co-operation agreement to jointly develop the facility.

The ceremony was held at the Energy Department Sindh in Pakistan and hosted by the Minister of Energy, Sindh, Mr. Imtiaz Ahmed Shaikh who was accompanied by the Secretary of Energy, Government of Sindh, and other government officials. The ceremony was also witnessed by Mr. Li Bijian, the Consul General of China in Karachi and the country representative of PowerChina was joined by Mr. Liu Shaoquan, Executive Vice President, via video link from Turkey.

The ceremony signified a very strong endorsement by the Government of Sindh in the project, and both the Minister and the Consul General expressed their complete commitment to its success. Mr Liu Shaoquan of PowerChina also emphasised how his company is committed to the development of the project alongside Oracle Power.

This joint development marks the global cooperation towards a greener future through the coming together of a UK-listed company with a Chinese state-owned enterprise in Pakistan.