The provincial government of Sindh has signed an MoU with a Chinese company for the construction of the country first green hydrogen project, the provincial government announced.
According to the details, the signing ceremony for the 400MW green hydrogen project was held at Sindh Energy Department here in Karachi where the Sindh Energy Minister Imtiaz Ahmed Shaikh and Consul General of China in Karachi Li Bijian also attended the signing ceremony.
The development comes a few days before the all-important COP26, the 26th United Nations Climate Change Conference of the Parties, which will confirm a global commitment to hydrogen economies.
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The announced project will get energy from wind and solar farms and will produce approximately 150,000 kg per day of green hydrogen from a 400 MW capacity.
Currently, only 4 per cent 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 department in a statement.
According to a report, more than 10 large market economies already have established hydrogen policies in place.
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, said Imtiaz Sheikh 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,” read the statement issued by the ministry.