REG - UK Oil & Gas PLC - Second Dorset hydrogen storage site

UK Oil & GasAnnouncement

21/08/2024 07:00

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RNS Number : 1494B  UK Oil & Gas PLC  21 August 2024

UK Oil & Gas PLC

("UKOG" or the "Company")

 

Second Dorset hydrogen storage site

 

UK Oil & Gas PLC (London AIM: UKOG) is delighted to announce that, via its
wholly owned subsidiary UK Energy Storage ("UKEn"), it has executed a heads of
terms covering the 60-year lease of land and subsurface mineral rights for a
second underground salt-cavern hydrogen storage facility in south Dorset. The
land lies above the thickest onshore part of the Dorset Triassic salt deposit
and is also in close proximity to SGN's planned H2 Connect hydrogen pipeline,
linking the proposed storage caverns directly to the planned Solent Cluster
and the wider southern UK hydrogen super-cluster (see RNS 27(th)  June 2024).
 

 

Each UKEn hydrogen storage site aims to provide around 6.5-10 Terawatt-hours
("TWh") of working storage per annum, equating to around 10-20% of the UK's
estimated 2050 hydrogen storage demand*. UKEn's aim of delivering these key
strategic energy infrastructure elements is fully in step with the
Government's ambitious target to decarbonise the UK power system by 2030.

 

UKEn will now proceed ahead to finalise the lease agreement, complete salt
cavern design studies and commence other works necessary to submit a
Nationally Significant Infrastructure Project planning application. The
Company also aims to apply for  government Revenue Support for at least one
Dorset site (see RNS 29(th) May, 27(th) June, 2(nd) August 2024).

 

Stephen Sanderson the Company's Chief Executive commented:

 

"UKEn's new Dorset site is optimally placed to exploit the thickest part of
the onshore Dorset Triassic salt deposit, permitting large underground caverns
to be emplaced via a modest sized surface facility. Its proximity to SGN's H2
Connect pipeline is deliberate and will ensure storage can be directly linked
to the planned Solent Cluster and wider Southern UK hydrogen networks.

 

We look forward to continued collaboration with government to develop these
strategic UK energy infrastructure assets and to help make the 2030 UK power
decarbonisation target a reality."

 

Note: * National Grid's July 2023 System Transformation Scenario and the Royal
Society's September 2023 Large-Scale Electricity Storage Report estimate 2050
UK hydrogen storage demand at around 50 TWh and 60-100  TWh, respectively.

For further information, please contact:

 

UK Oil & Gas Plc

Stephen Sanderson / Matt Cartwright / Guzyal
Mukhametzhanova                         Tel: 01483
941493

 

Zeus Capital Limited (Nominated Adviser and
Broker)

James Joyce / James Bavister / Andrew de Andrade
                               Tel:  0203 829 5000

 

CMC Markets (Joint Broker)

Douglas
Crippen                                                                                                                  Tel:
0203 (Tel:0203) 003 8632

 

Communications

Brian
Alexander                                                                                                                   Tel:
01483 941493

 

The information contained within this announcement is deemed by the Company to
constitute inside information under the Market Abuse Regulation (EU) No.
596/2014, as it forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018. Upon publication of this announcement, this information
is now considered to be in the public domain.

 

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