REG - UK Oil & Gas PLC - Hydrogen Storage Project update: Sumitomo LOS

UK Oil & GasAnnouncement

29/05/2024 07:00

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RNS Number : 1693Q  UK Oil & Gas PLC  29 May 2024

UK Oil & Gas PLC

("UKOG" or the "Company")

 

Hydrogen Storage Project update: Sumitomo LOS

UK Oil & Gas PLC (London AIM: UKOG) UK Oil & Gas PLC (London AIM:
UKOG) is delighted to announce that the Company's planned strategic Dorset and
Yorkshire Hydrogen Storage projects have received a  letter of support
("LOS") from Summit Energy Evolution Ltd ("SEEL"), a wholly owned subsidiary
of major Japanese trading conglomerate Sumitomo Corporation ("Sumitomo").

The LOS states that SEEL, Sumitomo's UK based hydrogen and energy transition
subsidiary, "commits to continue to cooperate with UK Energy Storage ("UKEn"),
UKOG's wholly owned Hydrogen Storage subsidiary, with a view to SEEL or
Sumitomo investing in UKEn's future hydrogen storage projects". It also
details  that "UKEn's hydrogen storage projects could provide keystone
storage for SEEL's Bacton Hydrogen (generation) Project", a proposed 590 Mega
Watt low-carbon hydrogen generation facility located close to the existing
Bacton Natural Gas Terminals in Norfolk.

This first LOS is an important step for the Company's hydrogen storage
projects as applicants for government funded Revenue Support via the
Department of Energy Security and Net Zero's ("DESNZ") forthcoming First
Hydrogen Storage Allocation Round ("Allocation Round") will be required to
furnish such LOS from identified hydrogen storage users and financial backers
in order to be successful.

UKEn plans to apply for government Revenue Support for at least one of its
hydrogen storage projects in the forthcoming Allocation Round, currently
scheduled by DESNZ to commence in Q3 this year, post General Election.

Whilst UKOG's proposed hydrogen storage projects are at an early engineering
design stage and there can be no certainty they will receive government
Revenue Support, the Company is committed to furthering these key strategic UK
infrastructure projects which remain a key part of the Company's overall
future strategy. The Company expects to receive further LOS in due course.

The full LOS is available on the Company's website www.ukogplc.com
(http://www.ukogplc.com) .

Stephen Sanderson UKOG's Chief Executive commented;

"We are delighted that SEEL, the UK based energy transition subsidiary of one
of Japan's most significant global trading houses, Sumitomo Corporation, has
recognised the strategic significance and potential material future value of
our planned hydrogen storage projects. Their LOS will help ensure we meet the
application criteria in DESNZ's forthcoming Hydrogen Storage Revenue Support
Allocation Round, a key step towards delivering our projects. We look forward
to continued and fruitful cooperation with SEEL/Sumitomo and to securing
further LOS from other potential storage users and investors".

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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