Oracle Power enters joint venture deal with Emirati sheikh's company

30th Mar 2022 13:19

(Sharecast News) - Natural resources project developer Oracle Power has entered a joint venture agreement with the private office of Emirati sheikh Ahmed Dalmook Al Maktoum, represented through Kaheel Energy, aiming to advance its green hydrogen project in Pakistan.

The AIM-traded firm said the joint venture company, Oracle Energy, aims to invest in, develop, own and operate a facility for the manufacture of green hydrogen in the Pakistani province of Sindh, and undertake its storage, transportation and sale.

Oracle Energy - Pakistan-incorporated limited liability company - would be funded on a 70-30 basis by Kaheel Energy and Oracle Power, respectively.

Kaheel Energy would leverage the sheikh's "relevance and influence" in new energy generation and infrastructure, to develop the Project through Oracle Energy.

The joint venture structure was intended to provide a vehicle to support the accelerated development of the project to meet the growing international and domestic demand for green hydrogen and clean energy.

At the same time, the structure would "significantly mitigate" the early-stage development risk and funding requirement for the project.

"This is a hugely significant development for Oracle and provides a route through which to establish a ground-breaking green hydrogen project in Pakistan," said Oracle Power chief executive officer Naheed Memon.

"As shareholders will be aware, the Oracle team has been working hard over the past six months to create a framework and investment path to bring this revolutionary green hydrogen technology to Pakistan, and this joint venture is a landmark development in bringing this to fruition.

"The parties involved will use their combined industry influence, and further build their technical expertise, to move the project forward at pace."

Memon said the joint venture structure would "materially de-risk" the development process for Oracle shareholders, while ensuring it maintained exposure to the "potentially highly valuable" initiative.

"Issues relating to green energy and fuel security are high on the agenda worldwide and we are more determined than ever to bring this emerging green fuel source to commercialisation."

At 1255 BST, shares in Oracle Power were up 5% at 0.39p.