UK-based Power project developer Oracle Power has signed a non-exclusive co-operation agreement with Powerchina International Group to jointly build a 400MW hydrogen production facility in Pakistan.

PowerChina is currently working on a technical pre-feasibility in the country and will help in financing and providing equity, if required, for the project.

Oracle will lead in forming partnerships and arranging funding for the project development.

By coordinating with the Sindh and Pakistani governments, the company aims to obtain the required support to establish the large-scale green hydrogen facility.

The plant will produce hydrogen using electrolysers powered by photovoltaics and is expected to be strategically located in Jhimpir, Gharo or Keti Bandar.

Green hydrogen produced at the facility will be exported to neighbouring economies, including China, South East Asia, Central Asia, Middle East, North Africa and Europe.

The two parties will sign engineering, procurement and construction (EPC) or operation and maintenance (O&M) contracts for the project.

Oracle Power CEO Naheed Memon said: “Green hydrogen is already high on the agenda for many countries, including India and many of the Gulf nations, but this agreement would make Oracle a first mover in Pakistan, a jurisdiction that has abundant renewable resources and land available.

“We jointly plan to set up a 400MW capacity hydrogen plant to produce approximately 150,000kg of green hydrogen a day.”

Oracle Power said that Pakistan is the ideal location for the hydrogen plant due to the availability of land, labour and renewable resources.

The Pakistani government is currently reviewing proposals from international investors and has set up a team to look into options and strategies.

PowerChina has also informed the Chinese government of its interest in the project, which could receive bilateral support under the China-Pakistan Economic Corridor (CPEC) programme.

In November 2017, Oracle Power submitted a proposal to the Private Power and Infrastructure Board for the development of a 660MW plant in Block VI of Pakistan’s Thar desert.