TIDMORCP
RNS Number : 5192Z
Oracle Power PLC
15 September 2022
15 September 2022
Oracle Power PLC
("Oracle", the "Company" or the "Group")
LOI Issued for 1,200MW Power/Green Hydrogen Project
Oracle Power PLC (AIM:ORCP), the international natural resources
project developer, is pleased to announce that further to the
announcement of 1 September 2022, the Company's joint venture
company, Oracle Energy Limited ("Oracle Energy" or the "Joint
Venture"), has been issued a Letter of Intent ("LOI") from the
Directorate of Alternative Energy of the Government of Sindh (the
"Directorate of Alternative Energy"), relating to the establishment
of a 1,200MW hybrid solar/wind, green hydrogen/power project (the
"Project") in Pakistan. The issuance of the LOI follows the
Directorate of Alternative Energy's confirmation of receipt of a
$600,000 bank guarantee (the "Bank Guarantee") from Habib
Metropolitan Bank, Karachi ("Habib Metropolitan") valid for 12
months, on behalf of Oracle Energy.
Highlights / Key Terms of the LOI
-- The LOI sets 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.
-- In accordance with the LOI, Oracle Energy is required to
complete certain milestones in the next 18 months which include,
inter alia, feasibility and environmental studies, securing water
use agreements, completing grid studies for interconnection,
obtaining a tariff from the National Electric Power Regulatory
Authority ("NEPRA") if required, providing a further bank guarantee
of US$3 million and receiving a Letter of Support from the
Directorate of Alternative Energy.
-- Oracle's share of the funding requirement for these
milestones will be from current cash and additional funding as
required during the course of development.
-- Provided the required milestones have been met by Oracle
Energy up to that time, the LOI can be extended beyond the initial
18 months, in the event that the relevant regulator fails to
announce or award a tariff due to delays on the account of
Government processes. Extensions can be repeatedly provided for six
months at a time and during any period of extension, if the tariff
is awarded, Oracle Energy is required to obtain a Letter of Support
by submitting the required further US$3 million bank guarantee.
-- Oracle Energy will also coordinate with a panel of experts
from the Directorate of Alternative Energy to determine site
layout, sub-station design, transmission line, interconnection
arrangements and other related operational and technical
matters.
-- The Directorate of Alternative Energy may terminate the LOI
and encash the Bank Guarantee if, inter alia, the requisite
milestones are not met, or the Bank Guarantee is not extended.
The Bank Guarantee provided by Habib Metropolitan on behalf of
Oracle Energy is valid for 12 months; however, Oracle Energy has
been advised by Habib Metropolitan that the guarantee can be
extended at Habib Metropolitan's discretion and subject to certain
terms.
Naheed Memon, CEO of Oracle, commented:
"This LOI gives us the confidence to move forward determinedly
with our pioneering green hydrogen project in Pakistan. With the
support of the Directorate of Alternative Energy, and of course our
joint venture partner, His Highness Shaikh Ahmed Dalmook Al
Maktoum, we are in a solid position to make material progress with
our plans to establish a hybrid solar/wind, green hydrogen/power
project of up to 1,200MW in a rapid timeframe.
"As we look now to the milestones set out in the LOI, including
relevant studies and securing required infrastructure we will, in
parallel, look to deliver and expand our commercial initiatives to
ensure we have a comprehensive and wide-ranging array of options to
maximise value for investors, and commercialise this transformative
energy source. I look forward to providing updates on our progress
in this regard over the coming weeks and months."
*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 +44 (0) 203 580
Naheed Memon 4314
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409
Rory Murphy, James Harris, Rob Patrick 3494
St Brides Partners Limited (Financial
PR) +44 (0) 20 7236
Susie Geliher, Catherine Leftley 1177
About Oracle Power PLC:
Oracle Power PLC is an international natural resource and power
project developer quoted on London's AIM market. The Company
currently has two areas of focus: Western Australia and Pakistan.
The Company is active in the energy industry in Pakistan and is
working to establish a green hydrogen production facility through
Oracle Energy Limited, a joint venture with His Highness Shaikh
Ahmed Dalmook Al Maktoum. The Company's initial project is the Thar
Block VI Project in south-east Pakistan where the Company is
advancing plans for a combined lignite coal mine, a 1,320MW mine
mouth power plant and a proposed coal gasification to urea
project.
In Australia, its primary focus is the Northern Zone Gold
Project, located 25km east of the major gold mining centre of
Kalgoorlie, the home of the 'Super Pit' mine, the second largest
gold mine in Australia. Northern Zone has a current Exploration
Target of 200-250Mt at 0.4-0.6g/t Au for between 2.5 - 4.8Moz gold,
with drilling being planned to define a maiden inferred JORC
resource.
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END
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September 15, 2022 02:00 ET (06:00 GMT)
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