UK Oil & Gas plc has unveiled plans for hydrogen storage and generation at a former naval harbour at Portland in Dorset.
The scheme, announced today to shareholders, will need planning permission and development finance, UKOG said in a statement.
The project aims to “reinvigorate” and develop further a previously unrealised scheme by Portland Gas Storage. This was granted planning permission in 2008 for gas storage in an underground salt cavern.
UKOG said the revised scheme now included:
- Hydrogen-ready energy hub
- Construction of up to 43 billion cubic feet of storage in salt caverns for hydrogen or methane gas
- New pipeline from the storage to the national transmission system
- New LNG import facility at Portland Port
If achieved, the scheme would “materially increase” the UK’s underground gas storage, currently reported at 61 billion cubic feet, UKOG said. The pipeline could handle approximately 14% of current estimated UK daily gas consumption, the company added.
UKOG said the scheme could “transition seamlessly” into green hydrogen production and storage as the “hydrogen economy evolves”.
UKOG chief executive, Stephen Sanderson, said the scheme was fully in keeping with the government’s energy security and hydrogen strategies and the National Grid’s 2021 future energy scenarios.
He said the proposal could:
“both materially strengthen the UK energy system’s resilience to supply and demand shocks, plus provide the foundations for a potentially significant and strategic element of the future green hydrogen economy”.
The statement said UKOG’s subsidiary UK Energy Storage Limited has signed a lease with Portland Port Limited for two sites at the former harbour.
It added that detailed engineering and commercial studies would be completed before submission of a planning application. The development is expected to qualify as a Nationally Significant Infrastructure Project and would be decided by a planning inspector or the local government secretary, rather local authority.
- Last year, UKOG announced plans for a geothermal energy hub at its site at Horse Hill in Surrey.
On 22 June 2022, UKOG reported that the business secretary, Kwasi Kwarteng, had welcomed its storage plans for Portland. The company published a letter.