UK Oil & Gas PLC (AIM:UKOG) has raised £400,431 through a discounted fundraising to develop its hydrogen storage project in Dorset and to try and win a place in the government’s Hydrogen Storage Business Model (HSBM) procurement round later this year.
If developed, the site at the deepwater Portland Port would be one of only three similar hydrogen hubs in the UK, the company pointed out.
The cash was raised from a small number of institutional investors at a price of 0.0102p per share, representing a sizeable 42% discount to the closing price of 0.0175p from the day before.
UKOG said the funds will enable the conceptual design of a joint venture green hydrogen generation and import project at Portland Port, and support the pre-front-end engineering design steps to meet eligibility criteria for the HSBM procurement process
This port will be focused on importing Middle Eastern green hydrogen carrier fluids and producing hydrogen for transmission into the AIM-listed company's South Dorset storage site and the wider UK network.
UKOG signed a lease agreement with Portland Port for two sites under the former Royal Navy port for the development of the hydrogen-ready gas storage caverns.