Business
LOI Issued: 1,200MW Power/Green Hydrogen Project
LOI Issued: 1,200MW Power/Green Hydrogen Project.
About this update from Oracle Power Plc
[{"type":"text","content":"\n \n \n 15 September 2022\n \n \n \n \n \n \n Oracle Power PLC\n \n \n \n \n (\"Oracle\", the \"Company\" or the \"Group\")\n \n \n \n \n \n \n \n LOI Issued for 1,200MW Power/Green Hydrogen Project\n \n \n \n \n \n \n \n \n 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.\n \n \n \n \n \n \n Highlights / Key Terms of the LOI\n \n \n \n \n \n \n ·\n 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.\n \n \n ·\n 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.\n \n \n ·\n 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.\n \n \n ·\n 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 mo...