KARACHI: UK-listed Oracle Power and Power China International on Saturday signed an agreement for green hydrogen project, a zero-carbon fuel generated from renewable energy sources, in southern...
KARACHI: UK-listed Oracle Power and Power China International on Saturday signed an agreement for green hydrogen project, a zero-carbon fuel generated from renewable energy sources, in southern Sindh province.
The planned project would produce approximately 150,000 kg/day of Green Hydrogen from a 400MW capacity plant using energy from wind and solar farms.
Naheed Memon, chief executive officer of Oracle Power and Yang Jianduo, chief representative in Pakistan of Power China International signed a memorandum of understanding for the joint development of the first green hydrogen project in Pakistan, a statement said.
Provincial energy minister Imtiaz Ahmed Shaikh and consul general of China in Karachi Li Bijian also witnessed MoU signing ceremony.
“The initiation of this project also comes at a time when Pakistan and China have announced a plan to sign on a three year investment cooperation pact for green projects,” the statement said.
More than 350 hydrogen projects are currently in development around the world. These seek to decarbonise economic sectors -- such as heavy transportation, industry and even aviation.
With the right policy and investment, hydrogen could satisfy as much as 24 percent of global energy demand by 2050.
Currently only four percent of the hydrogen produced is from green sources but it is expected to grow by many multiples as the global decarbonisation drive is accelerated.
“Green hydrogen produced from this plant in Sindh will be exported initially and the sponsors aim to secure buyers in China and in the region,” statement added.
Provincial minister Shaikh said the planned project placed “Sindh in the lead for the development of the global future fuel and places Pakistan amongst the ranks of forward thinking nations”.
“The abundant renewable resource in Sindh, two ports, and infrastructure make it an ideal location for this set up.”
Sindh province offers a potential of 50,000MW of wind and 10,000MW of solar power resource at commercial costs of as low as USc 3.5/kWh.
This cost can be lower when these resources are used as captive power for producing hydrogen. It is expected that this plant will produce green hydrogen at globally competitive rates well suited for both domestic and export markets.