Oracle Energy and Emirates Global Aluminium signed the MoU on 1 February 2023, agreeing to jointly cooperate on a non-binding basis to explore the potential for Oracle Energy to supply and deliver approximately 50,000 tonnes of Green Hydrogen to EGA from its planned Green Hydrogen Project in Pakistan – forming the majority of the Project’s total projected annual output.
If negotiations are successful, it is the intention that a binding agreement be signed during the 2023 UN Climate Change Conference (COP28), to be held in the UAE from 30 November to 12 December 2023. Oracle Energy is targeting a total annual output of 55,000 tonnes of high purity Green Hydrogen (equivalent to the production of 150,000 kg of hydrogen per day).
The term of the MoU is for a one-year period from 30 January 2023, during which the parties agree to progress discussions on the off take of Green Hydrogen ahead of COP28. EGA intends to acquire Green Hydrogen and green ammonia as part of its commitment to decarbonise its aluminium production. Replacing natural gas with Green Hydrogen not only decarbonises the aluminium production process but also improves the energy efficiency of aluminium furnaces using oxy-fuel combustion technologies.
Incorporated in the UAE, Emirates Global Aluminium is owned equally by Mubadala Investment Company, the Emirati state-owned holding company and the Investment Corporation of Dubai – a sovereign investor owned by the Government of Abu Dhabi, which manages a diverse portfolio of assets and investments in the UAE and abroad, to generate sustainable financial returns for its shareholders.
“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” said Naheed Memon, CEO, Oracle Power. “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. This MoU is an important collaboration as we move to attain sustainable offtake partners, for our production from our flagship Green Hydrogen project. The opportunities for Green Hydrogen production globally, are enormous and as an early mover in Pakistan, we look forward to reaping the fruitful rewards following our flagship Project’s successful deployment and contributing to domestic and regional decarbonisation goals.”
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