UK Oil
& Gas PLC
("UKOG"
or the "Company")
Dorset
Hydrogen Storage: SGN LOS
UK Oil & Gas PLC (London AIM:
UKOG) is delighted to announce that the Company's planned
strategic Dorset Hydrogen Storage Facility ("Project"), operated by
its wholly owned subsidiary UK Energy Storage ("UKEn"), has
received a letter of support ("LOS") from SGN, the operator of the
planned H2 Connect hydrogen transmission line, which plans to
directly link the Company's storage with the Solent Cluster and
Southern England and, ultimately to the new UK wide hydrogen grid
of Project Union. SGN currently operate Southern England and
Scotland's natural gas distribution networks.
SGN's Regional Development Manager
Graham Cox said:
"We believe hydrogen has a key role in decarbonising the
national energy system and support UKEn's proposed hydrogen storage
facility in Dorset.
This project has the potential to store 3TWh* of hydrogen in
subsurface constructed salt caverns and is essential to
decarbonising the Solent Cluster and Southern England. This
hydrogen storage will provide inter-seasonal capacity, security of
supply and pipeline stability for our proposed development of
hydrogen pipelines in the region.
It
will enable the end use of hydrogen across industry, heating and
transport, help meet growing regional energy demand, and support
the transition to net zero emissions."
This second LOS is thus a further
key step for the Company's planned application for government
hydrogen storage Revenue Support (see RNS 29th May
2024), as successful applicants must not only identify potential storage
users but must also demonstrate via LOS that its hydrogen storage
is being developed in tandem with pipeline connections, so that key
enablers of the UK's new hydrogen system can be delivered
simultaneously.
As per the Company's 29th
May RNS, the Department of Energy Security and Net Zero ("DESNZ")
currently plans to open the Allocation Round in Q3 this
year.
Whilst UKOG's proposed Project is at
an early engineering design stage and there can be no certainty it
will receive government Revenue Support, the Company is committed
to furthering this and its other essential strategic UK hydrogen
storage projects which will remain as the focus of the Company's
overall future strategy. The Company expects to receive further LOS
in due course.
Note: * TWh = Terawatt hours, where
3 TWh is the energy equivalent of approximately 1 billion standard
m³ of hydrogen.
Stephen Sanderson UKOG's Chief
Executive commented:
"It is a further key step for our Dorset hydrogen storage
project that SGN, the hydrogen pipeline operator, recognise the
project as essential for decarbonising the Solent Cluster and
Southern England. The LOS and mutually advantageous joint
cooperation will be essential for our application in the first
government hydrogen storage Allocation Round, as it will
provide DESNZ the necessary comfort that storage and pipelines can
be delivered in tandem to enable the new hydrogen system to
function."
For further information, please
contact:
UK
Oil & Gas Plc
Stephen Sanderson / Guzyal
Mukhametzhanova
Tel: 01483 941493
WH
Ireland Ltd (Nominated Adviser and
Broker)
James Joyce / James Bavister /
Andrew de Andrade
Tel: 020 7220 1666
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.
