Oracle Power PLC (AIM:ORCP) (Oracle Power PLC (AIM:ORCP)) said it entered a joint venture agreement to develop a green hydrogen project in Pakistan.
The tie-up is with Kaheel Energy FZ, a company owned by Sheikh Ahmed Dalmook Al Maktoum , a member of the royal family of the United Arab Emirates.
Oracle Energy Limited, the joint venture company, will be funded on a 70:30 split between Kaheel and Oracle and will invest, develop, own and operate a facility in Sindh, Pakistan, a statement said. It will manufacture green hydrogen as well storage, transportation and sales.
Kaheel will leverage the Shaikh’s “relevance and influence in new energy generation and infrastructure to rapidly develop the project,” according to a statement.
The JV is intended to accelerate the development of the project to match the growing global demand for green hydrogen and clean energy, as well as “significantly mitigate the early-stage development risk.”
"The parties involved will use their combined industry influence, and further build their technical expertise, to move the project forward at pace,” said chief executive of Oracle Naheed Memon.
“Importantly, this joint venture structure materially de-risks the development process for Oracle Power shareholders whilst ensuring we maintain exposure to this potentially highly valuable initiative.”
Shares in Oracle Power were up 12%, changing hands at 41p.