REG - UK Oil & Gas PLC - Dorset Hydrogen Storage: SGN LOS

UK Oil & GasAnnouncement

27/06/2024 07:00

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RNS Number : 0466U  UK Oil & Gas PLC  27 June 2024

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 29(th)
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 29(th) 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.

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