UK Oil & Gas agrees lease for second Dorset hydrogen storage site.
UK Oil & Gas PLC (AIM:UKOG) has penned a lease agreement for the company’s second hydrogen storage site in Dorset.
A 60-year heads and terms deal covering the lease of land and subsurface mineral rights has been reached via subsidiary UK Energy Storage, the company said on Wednesday.
Stephen Sanderson, chief executive, commented:
[The] 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.
Located in close proximity to SGN’s planned hydrogen pipeline, he added the site would be directly linked to regional distribution networks.
UK Oil & Gas noted work would now take place to finalise the agreement and complete design studies before a Nationally Significant Infrastructure Project planning application was submitted.
An application for government revenue support will also be made for at least one of its Dorset sites, the company added.
This is as UK Oil & Gas aims to provide between 6.5 and 10 terawatt-hours of storage at each site, equating to up to 20% of the UK’s estimated hydrogen storage demand in 2050.
Sanderson said:
“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,”
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UK Oil & Gas agrees lease for second Dorset hydrogen storage site. source
