TIDMORCP
RNS Number : 5954X
Oracle Power PLC
27 April 2023
27 April 2023
Oracle Power PLC
("Oracle" or the "Company")
Q1 Update and Corporate Strategy
Oracle Power PLC (AIM: ORCP), a developer of green energy
projects, is pleased to provide the following update on activities
during Q1 2023 and implementation of its realigned corporate
strategy, which focuses on the development of renewable energy
generation projects.
The Company made significant progress during the first quarter
of 2023, developing a series of strategic industry partnerships as
it advances the development of its flagship asset, the 400MW Green
Hydrogen Project (the "Project" or "GHP") in Sindh, Pakistan,
through its subsidiary Oracle Energy. It is targeting a total
annual output of 55,000 tonnes of high purity green hydrogen to
mainly export for use in industries, utilities and transportation
sectors.
Highlights
-- Signed a Memorandum of Understanding ("MoU") in February 2023
with Emirates Global Aluminium to jointly explore the supply of
c.50,000 tonnes of green hydrogen . If successful, the offtake
agreement would secure the majority of the GHP's output with an
industry leader, significantly mitigating financing risk.
-- Successfully raised gross proceeds of GBP500,000 in February
2023 via an oversubscribed placing of 294,117,647 new ordinary
shares priced at 0.17p, to support ongoing development of GHP in a
timely manner and with a view to begin construction in FY'24.
-- Signed MoU with subsidiary of State Grid of China, China
Electric Power and Technology Co., Ltd ("CET") in March 2023 to
develop, finance, construct, operate and maintain the GHP;
including the construction of a Hybrid Renewable Energy Production,
Chemical Processing, and Storage facilities.
-- Signed MoU in March 2023 with Doosan Fuel Cell Co., Ltd
("Doosan Fuel Cell"), the industry leading Korean fuel cell and
hydrogen company, and HyAxiom Inc. ("HyAxiom"), a leading global
fuel cell and hydrogen solution provider, to jointly explore fuel
cell opportunities for industrial power generation in Pakistan.
-- Land lease for GHP site formally awarded by the Government of
Sindh's land registry and registered in March, completing the
acquisition of the land package of 7,000 acres (announced in
November 2022).
-- Joined Dii Desert Energy as an Associate Partner in February
2023, an exclusive and highly influential independent network,
whose mission is to harness emission-free energy from the Middle
East and North African ("MENA") region and beyond.
The Company is mainly targeting markets in Asia including China,
Japan, Korea, and Europe for export of the green hydrogen molecule
in the form of liquid green ammonia or liquid hydrogen.
Furthermore, the Company has also formed relationships to deploy
green power solutions using hydrogen fuel engines, for large-scale
industry and transport.
Oracle expects to progress these strategic relationships with
industry leading partners in the coming months and looks forward to
updating the market accordingly.
Thyssenkrupp Uhde ("Thyssenkrupp") is also progressing well with
the commercial and technical feasibility work on the production of
green hydrogen and green ammonia at the GHP with preliminary
results due out in Q2 2023.
This study will help guide the Project's ongoing development and
will provide a basis for understanding the key production metrics
and expectations.
Following the signing of its MoU with the Company, CET has
positioned its teams to commence its studies on power and
transmission, which are expected to begin in Q2 2023. The results
from these studies will serve to feed into Thyssenkrupp's modelling
for the feasibility studies.
Corporate Strategy
Since COP26 in October 2021, there has been a significant focus
from most governments, international business and global capital
markets to accelerate the transition away from fossil fuel power
generation in order to meet the ambitious 2050 Net Zero targets.
With this pressure, the focus on renewable energy, as well as
hydrogen as a solution, has highlighted the importance of Oracle's
stated strategy of pivoting towards green energy power generation
and away from hydrocarbon industries.
Successfully delivering GHP would propel Oracle to first mover
status in the nascent green hydrogen sector in Pakistan with the
55,000tpa project the country's first and one of the largest such
projects in the region. It is expected to deploy 700MW solar and
500MW wind power along with a battery station, to produce green
hydrogen.
In addition, the global hydrogen production market is growing
rapidly and was valued at US$130 billion in 2022 by the World Bank
and anticipated to grow by over 9% per annum until 2030, which
points to strong global demand for GHP's planned output. The
Project is Oracle's first renewable energy project through its 30%
shareholding in Oracle Energy - its JV with His Highness Sheikh
Ahmed Dalmook Al Maktoum (via Kaheel Energy FZE, who owns the
remaining 70%), a regional developer of green energy projects.
Oracle aims to leverage its significant shareholder's expertise,
relationships and reputation as a strategic investor in energy
across the MENA region, which will also be a potential focus of
Oracle's operations. This will help achieve the Company's primary
strategic goal of becoming a leading developer of renewable energy
projects; as the originator of Pakistan's first commercial green
hydrogen production facility.
The development of relationships with some of the largest
utility providers in the world, including the co-operation
agreement, announced post period end in April, with PowerChina to
build a significant solar power generation plant on Oracle's Thar
Block VI in Pakistan, underpins the ongoing transformation of the
Company. These partnerships provide a key platform in making our
vision into a reality. We will continue to refine our strategy in
what is a rapidly changing environment, seek to monetise and divest
of assets which are non-core, and focus on the comparative
advantage of our expertise, relationships and quality assets in
order to maximise returns to our stakeholders and partners.
Naheed Memon, CEO of Oracle, commented:
"Our first quarter of 2023 has witnessed several exciting
developments through creating a strong network of industry
partnerships with potential off-takers, project financiers and
developers plus hydrogen fuel cell innovators, which further
establishes our position in the global green hydrogen ecosystem, as
a significant potential supplier of this renewable energy fuel.
The rapid developments in the global green hydrogen space are
nothing short of amazing and we are witnessing a huge leap in the
appetite for large-scale renewable energy in industry, transport
and aviation at a time when 'traditional' energy costs are
spiralling and becoming increasingly problematic due to climate
change implications. Alternative sources of clean, green energy are
badly needed globally. "
Naheed Memon, CEO of Oracle, will be conducting a shareholder
presentation and Q&A session via the Investor Meet Company
platform on Thursday April 27(th) at 11am GMT.
The presentation is open to all existing and potential
shareholders. Questions can be submitted pre-event via your
Investor Meet Company dashboard up until 9.00 a.m. the day before
the meeting or at any time during the live presentation. There is
no guarantee that all questions will be discussed on the call given
time limitations and/or specific sensitivities with respect to
operations.
Investors can sign up to Investor Meet Company for free and add
to meet Oracle Power PLC via:
https://www.investormeetcompany.com/oracle-power-plc/register-investor
Investors who already follow Oracle Power PLC on the Investor
Meet Company platform will automatically be invited.
For further information:
O racle Power PLC
N aheed Memon (Chief Executive Officer) +44 (0) 203 580 4314
Strand Hanson Limited (Nominated Adviser & Broker)
Rory Murphy, Matthew Chandler, Rob Patrick +44 (0) 20 7409 3494
Buchanan +44 (0) 20 7466 500
Oonagh Reidy/ Abigail Gilchrist oracle@buchanan.uk.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCPPUUUCUPWGQQ
(END) Dow Jones Newswires
April 27, 2023 02:00 ET (06:00 GMT)
Oracle Power (AQSE:ORCP.GB)
Historical Stock Chart
From Oct 2024 to Nov 2024
Oracle Power (AQSE:ORCP.GB)
Historical Stock Chart
From Nov 2023 to Nov 2024
