- The Oracle Power share price rose 17.8% on progress in Pakistan.
- The company received a letter of intent from the Government of Sindh.
- Oracle Power will build a 400 MW green hydrogen plant in the province.
The Oracle Power PLC (LON: ORCP) share price rose 17.8% after revealing that it had received a letter of intent from the Government of the Sindh province in Pakistan regarding the approval of its green hydrogen project in the region.
The company is expected to provide a US$600,000 bank performance guarantee to receive the final approvals for the project, which should kick off soon. Oracle Power is looking to build a 1,200MW hybrid solar/wind, green hydrogen/power project in Pakistan via Oracle Energy Limited, its Pakistani joint venture company.
Also read: Five Best Green Energy Stocks 2022.
The Letter of Intent (LOI) stipulates that Oracle Power can produce green hydrogen from a 400MW electrolyser facility. The power generated is expected to be sold to other businesses and utility companies for other uses.
Investors cheered the announcement, which gave Oracle Power a significant footprint in Pakistan as it set up the project. The company is already talking with equipment suppliers, technology providers and consultants to kickstart the project.
Oracle Power added that it can now continue discussions with potential buyers and users of green hydrogen and ammonia in the region and Europe. Investors were happy to see that the company was keen to move forward with the project at a fast rate.
Naheed Memon, Oracle Power’s CEO, commented: “I am delighted to report that our green hydrogen initiative in Pakistan has received confirmation that it will receive the consent of the Government of Sindh through the issuance of an LOI, subject to the provision of a bank guarantee. This is a defining moment for Oracle and our joint venture company, which also has the potential to transform the landscape of the energy industry in Pakistan through the setting up of a 400 MW green hydrogen production facility powered by a 1200 MW hybrid power plant. Such a green hydrogen plant would be able to produce up to 55,000 tonnes of green hydrogen pa at full capacity.”
So, should you buy Oracle Power shares? ORCP shares look attractive given that the company is worth £9.4 million and has significant upside potential. However, there are no guarantees that we won’t get a dip back to its recent lows of 0.21p.
*This is not investment advice. Always do your due diligence before making investment decisions.
Oracle Power share price.
The Oracle Power share price rose 17.85% to trade at 0.33p, rising from Tuesday’s closing price of 0.28p.