Oracle Energy has today (June 5) announced the signing of an agreement with PetroChina International (Middle East) Company (PCME) for the potential offtake of green hydrogen output and carbon credits from its planned project in Pakistan.
Under the Memorandum of Understanding (MoU) PCME has agreed to arrange the potential offtake of green hydrogen and carbon credits from the 55,000 tonne-per-day 400MW Oracle project, planned in Sindh, Pakistan.
Effective from June 2 (2023) and valid for five years, the MoU offers PCME the right of first refusal (ROFR) to enter into long-term or spot cargo contract to purchase all or part of the green hydrogen and carbon credits from the project.
Oracle has said it will ask PCME to meet the best off for a long-term purchase for green hydrogen prior to financial close of the project.
The 400MW project is set to establish 700MW of solar and 500MW of wind on a 7,000 acre site on Thatt district of Sindh, Pakistan.
PCME is looking to establishing the viability of offtake through the project’s feasibility reports before securing offtake, subject to price, quality and its board’s approval.
Speaking to H2 View in April (2023), Naheed Memon, CEO of the joint venture between Oracle Power and member of Dubai’s ruling family, His Highness Sheikh Ahmed Dalmook al Maktoum, said, the company intends to complete a final investment decision within the next 18 months.
“There are lots of green hydrogen projects that are conceptually in place, but work hasn’t really started,” Memon said. “We’ve actually invested, we are on the ground, we are actually developing this project. We are very committed to putting together a sound, viable, and commercially possible project.”
Commenting on the MoU, Memon said it came a huge step forward. “PetroChina is a large oil and gas trader and can potentially provide our project a commercially viable route to market,” she said.
The CEO continued, “Our green hydrogen project development is advancing swiftly and this understanding is a testament to the trust of the largest companies in the world are putting in our ability to develop this important project which could need regional demand for green hydrogen and green ammonia.”
H2 View understands the MoU was signed in the presence of a representative from the State Grid Corporation of China (CET), which recently agreed to become a potential investor in the Pakistani project, and has launched study work.
