Oracle Power (LON: ORCP) investors will be pleased with the company's share price performance on Monday morning after it jumped over 16% following news of a green hydrogen co-operation agreement with PowerChina International Group.
The two companies have signed a non-exclusive co-operation agreement to develop a green hydrogen production facility in Pakistan.
Green hydrogen is hydrogen generated from renewable sources. Oracle claims it is one of the most “important energy sources to support the transition to a carbon-neutral future.”
PowerChina is a Chinese state-owned enterprise. It is currently working on a technical pre-feasibility study for the project.
The facility in Pakistan is being targeted to produce hydrogen with electrolysers powered by photovoltaics.
The companies are targeting a 400MW capacity hydrogen plant, with planned hydrogen production of approximately 150,000 kg per day.
The Pakistan Government is yet to approve the plant, as it is reviewing proposals from international investors. However, it has a dedicated team examining the potential options and strategies.
Naheed Memon, CEO of Oracle, commented: “I am delighted to announce our agreement with PowerChina as we explore options of jointly developing a green hydrogen facility in Pakistan, which would represent the first production facility of its kind in the country and could support multiple industries including steel and fertiliser production, power generation, shipping and the aviation industry.
“Green hydrogen is already high on the agenda for many countries, including India and many of the Gulf nations, however this agreement would make Oracle a first mover in Pakistan, a jurisdiction which has abundant renewable resource and land available.”
Oracle Power's share price is up 16.39% at 0.39p so far on Monday morning after initially rising to a high of 0.4p at the open.
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