UK Oil & Gas PLC (AIM:UKOG) told investors that its clean energy subsidiary UK Energy Storage has signed a memorandum of understanding with Wales & West Utilities, with a view to connecting its planned South Dorset hydrogen storage project into a wider regional hydrogen network.
UKOG said access to large-scale storage will be critical to balancing supply and demand, with South Dorset positioned as a potential anchor asset.
Under the MOU, the two sides intend to explore direct or indirect linkage between HyLine South West and UKEn’s South Dorset salt-cavern storage site, pursue a possible joint bid for government backing under the Hydrogen Transport and Storage Business Model allocation process, and work together to promote wider hydrogen pipeline and storage development across the South West and WWU’s broader footprint.