UK Oil & Gas Secures Plot for Additional Hydrogen Storage Project

London-based energy company UK Oil & Gas PLC (LON:UKOG) said today that it has secured terrain and subsurface mineral rights for a second underground salt-cavern hydrogen storage project in south Dorset, southwest England.

UKOG has executed a heads of terms for a 60-year lease of land that lies above the thickest onshore part of the Dorset Triassic salt deposit, a statement says.

The agreed location is close to British gas distribution company SGN's planned H2 Connect hydrogen pipeline, linking the proposed storage caverns directly to the planned green hydrogen plants within the Solent Cluster and the wider southern UK hydrogen super-cluster.

The company's wholly-owned subsidiary UK Energy Storage (UKEn) will now work to finalise the lease agreement, complete salt cavern design studies and start other works necessary to submit a planning application. It also intends to apply for government Revenue Support for at least one Dorset site.

Focused on oil and gas exploration and production, UKOG is expanding its business into gas storage, hydrogen and geothermal at home. The company is looking to advance a pipeline of hydrogen storage projects for which earlier this month it conditionally raised GBP 1 million (USD 1.30m/EUR 1.17m) in gross proceeds via a share issuance