Pakistani, Chinese companies to construct Pakistan’s first green hydrogen project

Gwadar Pro

Karachi: Sindh provincial and a Chinese company have signed a Memorandum of Understanding (MoU) to construct Pakistan’s first green hydrogen project.

The MoU signing ceremony for the 400MW green hydrogen project in Sindh was held at Sindh Energy Department here in Karachi, the Sindh energy ministry said.

Sindh Energy Minister Imtiaz Ahmed Shaikh and Consul General of China in Karachi Li Bijian witnessed the signing of the MoU.

The announced facility will produce approximately 150,000 kg per day of green hydrogen from a 400 MW capacity plant using energy from wind and solar farms.

The MoU was signed by the Chief Executive Officer of UK-listed Oracle Power Public Ltd, Naheed Memon, and Chief Representative in Pakistan of Power China International.

The Sindh government has led in the establishment of renewable energy and now has taken another step in moving to support frontier technology, sustainability and innovation, Sindh energy minister Imtiaz Sheikh stated while addressing the ceremony.

“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,” he added.

The development comes a few days before the all-important United Nations Climate Change Conference or the COP26, which will confirm a global commitment to hydrogen economies.

The initiation of this project also comes at a time when Pakistan and China have announced a plan to sign a three-year investment cooperation pact for green projects.

Currently, only 4 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, said the energy ministry. More than 10 large market economies already have established hydrogen policies in place.