Oracle Power PLC (AIM:ORCP), the international natural resources project developer, is pleased to announce that further to the announcement of 3 August 2022, the Company has received confirmation from the Directorate of Alternative Energy of the Government of Sindh that the Letter of Intent (“LOI”) has been approved.
The LOI relates to the establishment of a 1,200MW hybrid solar/wind, green hydrogen/power project (the “Project”) in Pakistan, being advanced by the Company’s joint venture company, Oracle Energy Limited (“Oracle Energy” or the “Joint Venture”). The LOI will be issued in a prescribed format on finalisation of the US$600,000 performance guarantee by Oracle Energy, which is being negotiated by the Joint Venture parties with certain banking institutions and is expected to be concluded in September 2022. A further announcement will be made in due course.
The LOI will set out that the developer of the Project can produce green hydrogen from a 400MW capacity electrolyser facility and renewable power for business-to-business usage, for possible sale to utilities and for other uses. Oracle Energy plans to progress the other aspects of project development including the technical, financial and investment parameters of the Project and the Company will make further announcements in due course.
Naheed Memon, CEO of Oracle, commented:
“Following the advance of funds from both Oracle Power and Kaheel Energy on 16 August 2022, our joint venture company is suitably funded in the short term. We expect to finalise the bank guarantee soon, following the conclusion of negotiations to secure the best possible terms for this transaction, to ensure that we maximise the funds within the JV company to support development work for our pioneering green hydrogen project in Pakistan.”
*ENDS*
This announcement contains inside information for the purposes of Article 7 of EU Regulation No. 596/2014, which forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended.
For further information please contact:
Oracle Power PLC
Naheed Memon
+44 (0) 203 580 4314
