RE: 💣💣 BOOM 💣💣2 Oct 2025 12:10
The bombs are out. Here we go
UK Energy Storage (UKEn), a subsidiary of UK Oil & Gas PLC (UKOG), is actively progressing its plans for the onshore salt cavern hydrogen storage facilities in East Yorkshire and South Dorset.
Key updates on the status include:
Collaboration with National Gas: UKEn has signed a Memorandum of Understanding (MOU) with National Gas Transmission PLC to collaborate on the development of the national 100% hydrogen pipeline system, Project Union, and its direct connection to the East Yorkshire and South Dorset storage facilities. This connection is considered essential for the effective operation of the UK's future hydrogen network.
Funding and Next Steps: UKOG recently secured funding through a placing to commission and deliver the necessary engineering concept and design studies to advance the planned collaboration with National Gas and strengthen its submission for government revenue support via the Hydrogen Storage Business Model (HSBM) allocation rounds, which are scheduled to commence in the first half of 2026.
South Dorset Project:
Preliminary project design has been completed, confirming the suitability of the site west of Weymouth (replacing the original Portland Port location).
The current design comprises 24 salt caverns with a potential technical maximum annual storage capacity of 30.2 TWh.
The company is focusing its efforts and government revenue support applications on the South Dorset project due to its improved design, potential for higher capacity, lower capital expenditure, and greater revenue potential compared to the initial Portland Port plans.
East Yorkshire Project:
The East Yorkshire project is still a core focus, aiming for an initial phase with a maximum annual capacity of 7 TWh, with plans to expand.
It is expected to connect to Project Union's first phase, which is scheduled for operation by 2032 and aims to link the East Coast hydrogen cluster.
Timeline: The currently envisaged project timescale, subject to necessary consents and financing, sees construction potentially well underway by 2030, with the first operational caverns in the 2030-2032 window.