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UK Oil & Gas PLC (LSE:UKOG) is pleased to announce a major development in its strategic hydrogen storage initiative. Its wholly owned subsidiary, UK Energy Storage (UKEn), has secured a crucial letter of support (LOS) from The Solent Cluster. This endorsement highlights the strong interest and support from the primary near-term industrial users for UKEn’s planned salt cavern hydrogen storage facility in Dorset.
Strategic Importance of The Solent Cluster
The Solent Cluster is a prominent industrial cluster in southern England, recognized for its significant carbon emissions and its role in the transition to hydrogen and other low-carbon power sources. As one of six major UK industrial clusters focusing on decarbonization, it encompasses the location of UKEn’s proposed storage facility at its western boundary.
Stuart Baker, Executive Director of The Solent Cluster, emphasized the critical role of hydrogen infrastructure: “The production, transport, and storage of hydrogen are fundamental components of The Solent Cluster's strategy. Our members, including SGN, RWE, and ExxonMobil, are planning large-scale hydrogen facilities. Two of these members have also provided letters of support to UKEn, demonstrating a collaborative approach to advancing hydrogen infrastructure.”
Integration with National Hydrogen Network
As outlined in the Company’s RNS of June 27, 2024, UKEn’s proposed national-scale storage facility in Dorset is designed to connect directly with The Solent Cluster and the broader southern UK region through SGN's H2 Connect pipeline. This strategic link is intended to enhance the storage facility’s ability to support a substantial portion of the UK’s future hydrogen infrastructure.
Support and Future Applications
The letter of support from The Solent Cluster adds to the endorsements previously received from Sumitomo, SGN, and RWE, as detailed in RNS announcements from May 29, June 27, and August 2, 2024. These endorsements will be crucial for UKEn’s upcoming application for government hydrogen storage revenue support, aiding in the facilitation of the project’s development.
This additional support underscores the growing consensus around the importance of hydrogen storage solutions and reinforces UKOG’s commitment to advancing sustainable energy infrastructure in the UK.
