Oracle Power PLC (AIM:ORCP) shares jumped 16% as it received notice a letter of intent will be issued by local authorities in Pakistan regarding the construction of a 1,200 megawatt (MW) green hydrogen power project.
Oracle’s joint venture company, Oracle Energy Limited, is looking to develop the hybrid solar and wind project in Sindh Province.
The letter was received from the Directorate of Alternative Energy of the Government of Sindh confirming that it will issue a letter of intent regarding the 1,200MW project, subject to the provision of a US$600,000 performance guarantee by Oracle Energy.
The letter of intent is expected to provide that the developer of the project can produce green hydrogen from a 400MW capacity electrolyser facility, renewable power for business-to-business usage, for possible sale to utilities and for other uses.
"This is a defining moment for Oracle and our joint venture company," said Naheed Memon, chief executive of Oracle.
He said the project 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."
Oracle said the JV plans to progress the other aspects of project development including the technical, financial and investment parameters