UK Energy Storage (UKEn) has signed two agreements with Portland Port Limited (PPL) for hydrogen import, storage and electrolysis support for its South Dorset salt caverns.
The UK Oil and Gas (UKOG) subsidiary agreed to two Memorandums of Understanding (MOU) with the port, and it intends to formalise these agreements in due course.
One MOU will cover the import of green hydrogen in carrier liquids of compressed form for storage, while the other will explore green hydrogen production with PPL, using excess local renewable energy to create a “Hydrogen Battery” for energy storage.
Additionally, they want to utilise hydrogen to power generation within Portland Port, which would meet initial power requirements for UKEn’s South Dorsent salt cavern storage site and its environs.
An online statement released by UKOG said, “The close geographic proximity of UKEn’s South Dorset storage site and PPL’s deep-water port, capable of handling Very Large Gas Carrier size vessels (VLGCs), presents an opportunity to establish a material scale integrated green hydrogen energy hub.
“UKEn’s South Dorset hydrogen storage project, together with these proposed new hydrogen-centric projects, will continue to play a major role in the company’s activities and in the decarbonisation of the South and Southwest of England, the Solent Cluster and the wider UK energy system.”
UKEn has now identified and opened preliminary dialogue with potential liquid and gaseous green hydrogen suppliers.
“The addition of a potential material source of green hydrogen, directly linked to UKEn’s South Dorset storage site, would both enhance our project’s national significance and the prospects of UKEn securing revenue support in the government’s forthcoming Hydrogen Storage procurement process,” explained Stephen Sanderson, UKOG’s Chief Executive.
“The revenue support case would likely be further strengthened by the future potential for UKEn’s proposed at scale Hydrogen Battery allied to planned offshore Dorset wind power.”
The two new agreements come shortly after UKOG decided to relocate its hydrogen salt cavern storage from its original Portland site to an undisclosed region of Dorset, “located west of Weymouth.”
Reportedly, the new site will offer around 36% lower CAPEX costs than the Portland facility and offer cost savings of £450m ($559m).
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