Oracle inks land lease deal for 1.2-GW renewables hub in Pakistan

Oracle Power PLC (LON:ORCP) said today it has sealed a land lease agreement with the government of southern Pakistan’s Sindh province for a complex housing a 1.2-GW hybrid renewable park and a green hydrogen production plant.

The 30-year lease concerns a land area of 7,000 acres (2,833 ha) in the Thatta district of Sindh. It will become home to a 400-MW electrolyser powered by 700 MW of solar and 500 MW of wind farms coupled with up to 450 MW of batteries. The produced green hydrogen will be supplied to the local manufacturing, fertiliser, transportation and power industries, with some of it to be exported to Europe and Asia. The plant's initial hydrogen production capacity will be up to 55,000 tonnes a year.

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The project is being progressed by Oracle Energy Ltd, a joint venture between Oracle and Shaikh Ahmed Dalmook Al Maktoum of Dubai’s Kaheel Energy FZE. The latter is a 70% owner of the joint entity.

The selected site has immediate proximity to existing infrastructure and offers good access to Pakistan’s national grid, as well as access to road and rail facilities and ports. Oracle Energy has paid USD 1.83 million (EUR 1.76m) to its partner for the first 10 years of the land lease contract and will make additional payments in 2033 and 2043.

German engineering company Thyssenkrupp Uhde was in October selected to lead the technical and commercial feasibility study for the hydrogen proposal, with results due to be released in the first half of 2023. Discussions are now ongoing with potential off-take clients, Oracle said.

(USD 1.0 = EUR 0.962)