A 30-year lease, secured through Oracle Energy, was agreed with the Government of Sindh for the 7,000-acre site in the Thatta district and the investment covers the first decade of the lease, with future payments due in 2033 and 2043.
Oracle Energy’s flagship Green Hydrogen Project is targeting annual production of 55,000 tonnes of Green Hydrogen (equivalent to the production of 150,000kg of hydrogen per day).
The company’s partner, HH Sheikh Ahmed Dalmook Al Maktoum, who owns 70% of Oracle Energy through Kaheel Energy, is an active investor and developer of a number of power generation projects across the region.
Oracle Energy’s green hydrogen project would be Pakistan’s first producer of green hydrogen, with an initial capacity to produce 55,000 tonnes annually, and be one of the largest hydrogen projects in the Middle East and Asia. H2 View reported on the project in February.
The site is located within the Gharo-Jhimpir wind corridor, where over 1 GW of renewable power has been constructed and commissioned, of which 350 MW commissioned power lies within a 10km radius of the project.
Beyond access to Pakistan’s national grid, the Project has immediate proximity to existing infrastructure, including access to water in the form of Karachi’s largest freshwater reservoir, and established rail and road infrastructure, which connect to Pakistan’s two largest ports – Karachi Port and Port Qasim.
Oracle Energy intends to supply its production to local industries supporting manufacturing, fertiliser production, gas utilities, transport and power generation, and also to export to European and Asian markets.
The project plans the development of solar and wind power facilities with a combined output of 1.2GW hybrid power from proposed capacity 700MW solar and 500MW wind plants, along with a battery storage park of up to 450 MW, to ensure the continuous production of hydrogen throughout the year.
Application for the renewable hybrid plant to be connected to the grid would be made, fulfilling objectives for the sale/exchange of surplus/shortfall renewable energy into the grid, and the supply of energy to power Oracle Energy’s Green Hydrogen and green ammonia production facility.
Domestic hydrogen production would allow Pakistan to reduce its reliance on imported energy resources and fossil fuels and cut its carbon dioxide (CO2) emissions – Pakistan is targeting 30% of its energy requirements from renewable sources by 2030 – and the production of Green Hydrogen would provide a fully sustainable and renewable energy source for industrial use.
In October, thyssenkrupp Uhdeto was appointed to lead the technical and commercial feasibility study, due to be released in H1 2023. The company is in advanced discussion with multiple partners across the value chain and has signed MoU’s and non-exclusive cooperation agreements including with the green hydrogen certifier, TÜV SÜD. It is also in advanced discussions with potential offtake customers.
Naheed Memon, CEO, Oracle Power, said the signing of the 30-year lease marks a critical milestone in the development of Oracle Energy’s Green Hydrogen Project. He said, “The sizeable site provides all the key ingredients needed to build a hydrogen project of this significant scale: access to unlimited renewable energy and water sources, as well as excellent transportation and transmission infrastructure.”
HH Sheikh Ahmed Dalmook Al Maktoum said Oracle Energy is moving rapidly towards its next phase of development with the securing of an ideal location for the Green Hydrogen Project in the Gharo-Jhimpir corridor. He said, “The Project addresses one of the most important issues facing the planet at the moment. The provision of Green Hydrogen is rapidly gaining recognition globally as one of the solutions to transitioning from fossil to zero carbon energy generation.”