REG - UK Oil & Gas PLC - Solent Cluster Hydrogen Storage LOS

UK Oil & GasAnnouncement

09/09/2024 07:00

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RNS Number : 3288D  UK Oil & Gas PLC  09 September 2024

UK Oil & Gas PLC

("UKOG" or the "Company")

 

Solent Cluster Hydrogen Storage LOS

 

UK Oil & Gas PLC (London AIM: UKOG) is delighted to announce that its
strategic Dorset salt cavern hydrogen storage project, operated by its wholly
owned subsidiary UK Energy Storage ("UKEn"), has received a further key letter
of support ("LOS") from The Solent Cluster, which constitutes the primary
near-term industrial user base of the Company's planned facility.

 

The Solent Cluster is one of six large UK industrial clusters planning to
decarbonise via a switch to hydrogen and other sustainable low-carbon power
sources. It is the major industrial cluster and carbon emitter in the southern
half of England and encompasses UKEn's planned storage facility at its western
limit.

 

Stuart Baker, Executive Director of The Solent Cluster, states:

 

"The production, transport and storage of hydrogen are key infrastructure
elements of The Solent Cluster, with significant national scale hydrogen
facilities planned by our members, including SGN, RWE and ExxonMobil, two of
whom, we understand, have also furnished LOS to UKEn.

 

UKEn's hydrogen storage project in Dorset can, therefore, be a key enabler for
the decarbonisation of The Solent Cluster and southern UK, providing strategic
inter-day to seasonal storage capacity, security of supply and pipeline
stability for the proposed SGN H2 Connect pipeline network, also a key part of
The Solent Cluster."

 

 

As per the Company's RNS of 27 June 2024, UKEn's national scale Dorset storage
facility is planned to link directly with The Solent Cluster and the wider
southern UK via SGN's H2 Connect pipeline, enabling our storage to service a
significant portion of the UK's planned future hydrogen system.

 

Along with similar LOSs from Sumitomo, SGN and RWE (see RNS announcements of
29 May, 27 June and 2 August 2024) The Solent Cluster LOS will be used as
required documentation for UKEn's future application for government hydrogen
storage Revenue Support.

 

Stephen Sanderson, Chief Executive of UKOG and UKEn, commented:

 

"This further key LOS will help strengthen UKEn's application for Revenue
Support by providing government and identified potential strategic investors
comfort that the project links directly to a major UK industrial user base. We
look forward to continued collaboration with The Solent Cluster of which we
are now a key member."

 

For further information, please contact:

 

UK Oil & Gas Plc

Stephen Sanderson / Matt Cartwright
                                               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 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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