UK Oil & Gas PLC Expands with Second Dorset Hydrogen Storage Site
Key Ideas
  • UK Oil & Gas PLC's subsidiary secures a 60-year lease for a second underground salt-cavern hydrogen storage site in south Dorset, aiming to meet a significant portion of the UK's 2050 hydrogen storage demand.
  • The strategic location above the thickest part of the Dorset Triassic salt deposit and near SGN's H2 Connect pipeline will facilitate direct connection to the planned Solent Cluster and broader Southern UK hydrogen networks.
  • The company plans to finalize the lease agreement, conduct salt cavern design studies, and begin other necessary works to submit a Nationally Significant Infrastructure Project planning application, aligning with the UK's 2030 power system decarbonisation goal.
  • UK Oil & Gas PLC emphasizes collaboration with the government to develop key energy infrastructure assets and contribute to achieving the 2030 UK power decarbonisation target.
UK Oil & Gas PLC, through its subsidiary UK Energy Storage, has secured a 60-year lease for a second underground salt-cavern hydrogen storage facility in south Dorset. This site aims to provide a substantial portion of the UK's estimated 2050 hydrogen storage demand, aligning with the government's target to decarbonise the UK power system by 2030. The location of the site above the thickest part of the Dorset Triassic salt deposit and its proximity to SGN's H2 Connect hydrogen pipeline will enable direct connection to the planned Solent Cluster and broader Southern UK hydrogen networks. The company is now moving forward to finalize the lease agreement, conduct salt cavern design studies, and begin necessary works for a planning application for a Nationally Significant Infrastructure Project. UK Oil & Gas PLC plans to apply for government Revenue Support for at least one Dorset site. The Chief Executive highlighted the strategic placement of the new site and expressed eagerness for continued collaboration with the government to realize the 2030 UK power decarbonisation target. The estimated hydrogen storage demand for 2050, according to National Grid and the Royal Society, further underscores the significance of such strategic energy infrastructure investments.
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