UK Oil & Gas attracts another supporter for Dorset H2 storage project

London-based energy company UK Oil & Gas PLC (LON:UKOG) has received another letter of support (LoS), from the low-carbon investments initiative The Solent Cluster, for its project to build an underground salt cavern hydrogen storage facility in Dorset, southwest England.

UKOG, which has already collected LoSs from various energy and hydrogen infrastructure companies, will use the letter as required documentation for a future application for government hydrogen storage Revenue Support, it said in a statement published today.

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The Solent Cluster is one of six large UK industrial clusters that plan to decarbonise by shifting to hydrogen and other sustainable low-carbon power sources. It also represents a major near-term industrial user of the Dorset site.

The Dorset storage facility is planned to link directly with The Solent Cluster and the wider southern UK via British gas distribution company SGN's planned H2 Connect pipeline.

UKOG has already attracted LoSs from RWE, Sumitomo and SGN.

The British firm seeks to establish a pipeline of hydrogen storage projects for which in August it conditionally raised GBP 1 million (USD 1.31m/EUR 1.18m) in gross proceeds via a share issuance. Later that month, it announced it had secured terrain and subsurface mineral rights for a second project in south Dorset.

(GBP 1 = USD 1.316/EUR 1.186)