Oracle Power PLC, a successful producer of green hydrogen, has agreed upon a Memorandum of Understanding through its Joint Venture Oracle Energy Limited for supplying 50,000 tonnes of green hydrogen to Emirates Global Aluminium PJSC (EGA).
This MoU between EGA and Oracle Energy will ensure the projected supply of almost 50,000 tonnes of green hydrogen channelled from its patented Green Hydrogen Unit in southeast Pakistan. Oracle Energy and EGA have embarked on a non-binding mission to explore the potential of the energy company in supplying ample green hydrogen, inducing a majority share of the estimated annual output of the Middle Eastern aluminium giant.
If the companies can draw perfect negotiations, it has been noted that a probable binding agreement would be signed during the 2023 UN Climate Change Conference (COP28), to be organised in the UAE from 30 November to 12 December this year. Oracle energy aims at an annual targeted output of 55,000 tonnes of high purity Green Hydrogen, parallel to the production of 150,000 kg of hydrogen each day.
The conditions of the MoU are valid for a one-year period beginning on 30 January 2023, during which the parties involved will initiate discussions on the off-take of Green Hydrogen before the inception of COP28.
EGA has vouched to purchase Green Hydrogen and ammonia to satisfy its part of the global commitment to decarbonising its aluminium-producing technology. Once big players switch from the use of natural gas to Green Hydrogen, a large part of the aluminium industry will find itself on the path of decarbonisation along with improved energy efficiency of aluminium furnaces that will now utilise oxy-fuel combustion methodologies other than the conventional theory.
Established in the UAE, Emirates Global Aluminium is owned in equal parts by the Mubadala Investment Company, the Emirati state-owned holding company and the Investment Corporation of Dubai – an independent investor under the Government of Abu Dhabi. All of these brands together maintain the global portfolio of EGA’s assets and investments in the country and beyond to yield sufficient financial returns for its shareholders.
The CEO of Oracle Power, Naheed Memon, narrated: “The signing of the MoU with EGA, a sovereign-owned global stalwart in the aluminium sector, is a significant step towards mitigation of financing risk for the Green Hydrogen project, as well finding a secure place for our project in the global supply for Green Hydrogen, as heavy industry giants move to decarbonise.”
“Interest from this global player also highlights the significant progress made, to date, on the development of Oracle Energy’s flagship Green Hydrogen Project, which would potentially be one of the largest Green Hydrogen projects in the region,” he added.
The avenues for international Green Hydrogen are certainly broadening due to the requirement of sustainable power sources for energy-intensive industries like aluminium. Oracle, one of the first initiators in Pakistan, has been blessed with the first arrival consequences wherein the company is ready to harvest the positive results of the successful materialisation of its flagship Green Hydrogen Project in the country’s southeast region. In the foreseeable future, this move would contribute largely to the development of Green Hydrogen industry products in the regions and worldwide, largely adding to the global decarbonisation goals.
“This MoU is an important collaboration as we move to attain sustainable off-take partners for our productions from our flagship green hydrogen project,” Memon concluded.
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