A new 400 megawatts green hydrogen production plant is expected to be included in the China–Pakistan Economic Corridor (CPEC) projects.
Oracle Power, a UK-registered company specialising in coal and gold mining, has signed an agreement with state-owned civil engineering giant PowerChina for the plant establishment that will produce green hydrogen in Pakistan.
The plan is to build a hydrogen plant with a capacity of 400 megawatts and an anticipated hydrogen production rate of about 150,000 kg per day.
PowerChina will carry out a technical pre-feasibility study for the project, to be completed before the end of the year, and Oracle will arrange finance and handle relations with the government of Pakistan. Adding the to CPEC projects may help the funding process.
Naheed Memon, the chief executive of Oracle, said in aninterviewwith financial broadcaster Proactive that she believed green hydrogen was likely to be “the only fuel we end up using in a few decades”.
“Renewable energy in Pakistan is becoming increasingly economical and globally competitive,” she said. “We have an abundance of land and PowerChina has been in discussion with the central government to move into the production of green hydrogen.”
Memon added that Oracle is already involved in the development of coal mines in Sindh, which has familiarised the company with Pakistan’s business environment.
If the project goes ahead, it will be the first of its kind in the country, and could supply other industries in the country, such as steel and fertiliser production, power generation, shipping and the aviation industry.