UK Oil and Gas (UKOG) has relocated its hydrogen salt cavern storage project from its original Portland site in Dorset to a new, undisclosed facility “located west of Weymouth.”
The British company’s subsidiary UKEn has completed the preliminary project design for the proposed new underground storage facility, which will incorporate 24 salt caverns at -1.3km.
UKOG has stated the new site will offer around 36% lower CAPEX costs than the Portland facility, citing cost savings of £450m ($559m).
The new site could improve government revenue support and strategic positioning, being closer to a planned hydrogen pipeline which H2 View understands is being developed by SGN.
Furthermore, the new salt cavern site benefits from superior geological conditions, with thicker triassic salt formations allowing for larger caverns and simpler storage.
DEEP.KBB has proposed a “cushion gas scheme” to reduce costs, which has been implemented across the UK, US and Europe and requires only one brine well per storage cavern. This would simplify development and operation by eliminating the need for extra brine wells, facilities and pipelines.
As a result, UKOG decided to “pursue revenue support only for its more competitive South Dorset and East Yorkshire projects and will no longer pursue the Portland project,” despite previously agreeing to lease a site at the Port of Portland.
Plans for a green hydrogen pilot plant that could be linked directly to the storage site are also being considered by UKOG.
The company aims to begin construction of the new hydrogen storage facility by 2030, pending regulatory approvals and financing. The exact location remains undisclosed as negotiations with the landowner are still ongoing.
The initial salt caverns are anticipated to be operational in “the 2030-32 window.”
Stephen Sanderson, UKOG’s Chief Executive, explained that the new facility will be a “more compelling case for government revenue support in the forthcoming hydrogen storage procurement process,” which is scheduled for later this year.
“Consequently, our efforts will now be focused upon this material project and its northern sister in East Yorkshire, both of which plan to utilise simple and proven cushion gas operating technology.”
Read more:RWE backs UKOG hydrogen storage projects in the UK
Uniper goes underground: Storing hydrogen in salt caverns
Uniper has had a busy summer. Aside from closing the UK’s last coal-fired power plant, the German state-owned energy firm has also been making steps that could guide its future, cleaner energy business
In August, the company opened its pilot underground hydrogen storage cavern in Krummhörn, Germany, which Doug Waters, Managing Director of Uniper Energy Storage, told H2 View is unique in its focus.
“Our concept is to test storing hydrogen salt caverns, and whilst that’s been done in a number of places before, we’re looking at it from a perspective of how quickly we can move the hydrogen in and out, and what the quality is when we get it back,” he said.
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