UK Oil & Gas (LSE:UKOG) said its wholly owned subsidiary UK Energy Storage (UKEn) has entered into a memorandum of understanding with Wales & West Utilities, the primary gas network operator across Wales and South West England, to support the development of a regional hydrogen infrastructure network.
The agreement focuses on integrating UKEn’s proposed hydrogen storage facility in South Dorset with WWU’s planned HyLine South West pipeline. The pipeline project is designed to connect hydrogen producers, users and storage facilities across the region, forming part of a broader low-carbon energy network.
Under the terms of the memorandum, the two parties will explore options to link the HyLine South West system either directly or indirectly with UKEn’s planned salt-cavern hydrogen storage site. They also intend to work together to seek UK government revenue support through the Hydrogen Transport and Storage Business Model while promoting the wider rollout of hydrogen pipeline and storage infrastructure within WWU’s network area.
The new agreement builds on UKEn’s previously announced partnership with National Gas, which focuses on national hydrogen network connectivity. Together, these initiatives aim to strengthen the foundations for a large-scale and reliable hydrogen supply system while supporting industrial decarbonisation efforts in Wales and the South West of England.
More about UK Oil & Gas PLC
UK Oil & Gas PLC is an AIM-listed energy company developing hydrogen storage infrastructure through its clean energy subsidiary UK Energy Storage. The group is focused on constructing large-scale hydrogen storage in salt caverns in southern England and positioning itself within the emerging UK hydrogen economy by targeting both national and regional pipeline connectivity for producers, industrial users and hydrogen offtakers across Wales, the South West and other parts of the UK.
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