The joint venture company, Oracle Energy Limited, aims at investing in, develop, own and operate a facility for the manufacturing of green hydrogen in Sindh and also undertake its storage, transportation and sale.
Oracle Energy, a limited liability company incorporated under the laws of Pakistan, will be funded on a 70:30 basis by Kaheel Energy and Oracle Power, respectively.
Kaheel Energy is 100 per cent owned by Ahmed Dalmook Al Maktoum. The joint venture structure is intended to provide a vehicle to support the accelerated development of the project to meet the growing international and domestic demand of green hydrogen and clean energy.
At the same time, this structure will significantly mitigate the early stage development risk and funding requirement for the project.
Naheed Memon, CEO of Oracle Power, said that it was a hugely significant development for Oracle and provided a route to establish a groundbreaking green hydrogen project in Pakistan.
“As shareholders will be aware, the Oracle team has been working hard over the last 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.”
Memon said that the parties involved would use their combined industry influence and further build their technical expertise to move the project forward at fast pace.
“Importantly, this joint venture structure materially de-risks the development process for Oracle Power shareholders, while ensuring we maintain exposure to this potentially highly valuable initiative,” Naheed Memon said.
“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.”
Oracle, Kaheel Energy and Oracle Energy would retain joint operational and management control and Naheed Memon will also be the CEO of Oracle Energy.
Kaheel Energy has been issued with 233,330 new ordinary shares at Rs12/share, (a 20 per cent premium to Oracle’s subscription) in Oracle Energy.
Kaheel Energy will be issued shares such that its shareholding is 70 per cent and the remaining 30 per cent will remain with the Oracle Power on a pari passu basis.