Oracle Power's coal site in Pakistan recognised as potential fertiliser project
UK energy developer, Oracle Power’s (ORCP) Thar Block VI Coal Project in Pakistan has been acknowledged as a potential coal gasification into fertilizer projects by an intra-government initiative between Pakistan and China.
This consideration regarding the Thar Block VI site was made at the 9th Joint Cooperation Committee Meeting ("JCC") on the China-Pakistan Economic Corridor on 6th November 2019.
The initiative represents a broader Pakistan initiative to address the anticipated 2.6Mtpa shortfall of urea by 2026-2027.
The use of lignite via the gasification process in urea production is significant in addressing the anticipated shortfall, supporting the critical agricultural sector in Pakistan.
Both Chinese and Pakistani government representatives noted Block VI’s inclusion, expressing a desire to undertake a feasibility study for further evaluation.
ORCP price chartOracle has also been in discussion with various state-owned enterprises in both Pakistan and China, those of which had previously expressed interest in offering financial and technical support in the event that Block VI was transformed into a fertiliser initiative.
Oracle says the initiative has the potential to have a “transformational impact” on food security in Pakistan, as well as, in the Board's view, marking “a hallmark moment” for the group.
“The potential scale and opportunity of this development is truly significant, especially given the potential synergies with our ongoing development of coal mine and mine mouth power,” commented Naheed Memon, Chief Executive of Oracle.
Oracle’s Block VI coal resource maintains a JORC resource estimate of 529Mt and significant additional potential -- the company therefore views this prospect in parallel to its previously announced coal mine and power plant being developed by the group and its MOU partners.
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