Deal agreed for second hydrogen storage site
UK Energy Storage (UKEn) has agreed terms to lease a second underground salt-cavern hydrogen storage facility in south Dorset.
The site is close to SGN’s H2 Connect pipeline and will link storage to the planned Solent Cluster and wider hydrogen networks.
Each UKEn hydrogen storage site aims to provide around 10-20% of the UK’s estimated 2050 hydrogen storage demand.
UKEn chief executive Stephen Sanderson said: “UKEn’s new Dorset site is optimally placed to exploit the thickest part of the onshore Dorset Triassic salt deposit, permitting large underground caverns to be emplaced via a modest sized surface facility.”
UKEn, which is owned by AIM-listed group UK Oil & Gas, has executed a heads of terms covering the 60-year lease of land and subsurface mineral rights.
Sanderson added: “We look forward to continued collaboration with government to develop these strategic UK energy infrastructure assets and to help make the 2030 UK power decarbonisation target a reality.”
UKEn will nowmove to finalise the lease agreement, complete salt cavern design studies and start other works necessary to submit a Nationally Significant Infrastructure Project planning application.
The company also aims to apply for government revenue support for at least one Dorset site.
