UKOG, Wales & West Utilities Link Hydrogen Pipeline to South Dorset Storage Project
UK Oil & Gas and Wales & West Utilities have signed an agreement to link a hydrogen pipeline network with planned salt-cavern storage in South Dorset.
(P&GJ) — UK Oil & Gas said in a regulatory filing that its subsidiary UK Energy Storage (UKEn) has signed a memorandum of understanding with Wales & West Utilities (WWU) to link hydrogen pipeline infrastructure with planned storage capacity in southern England.
The agreement outlines plans to connect WWU’s proposed HyLine South West hydrogen pipeline system with UKEn’s South Dorset salt-cavern storage project, enabling the movement and balancing of hydrogen supply across the region.
WWU, which serves approximately 7.5 million customers, is developing the HyLine South West network to connect hydrogen producers, end users and storage facilities as part of broader efforts to build out low-carbon energy infrastructure.
Under the MOU, both parties intend to pursue a joint application for government support through the UK’s Hydrogen Transport and Storage Business Model (HTSBM), which requires coordination between pipeline and storage operators.
The agreement also supports broader plans to expand hydrogen infrastructure across Wales and South West England, including integration with national pipeline systems.
"This important MOU is a further essential building block for UKEn's planned South Dorset hydrogen storage project, enabling its at-scale salt-cavern storage to be linked seamlessly via WWU's planned HyLine South West pipeline to the region's hydrogen producers and offtakers. It also strengthens both Companies' quest for government revenue support, fulfilling the new HTSBM criteria which requires regional storage and pipeline operators to make a joint application. We very much look forward to strengthening our working relationship with WWU and ultimately to both projects' delivery."
"Across Wales and the South West, green gasses will be essential to decarbonise industry and other energy users. Our Hyline projects aim to provide the critical infrastructure to connect hydrogen production and users and enable repurposing of existing network assets to reduce disruption in the transition to low carbon energy.
Storage at scale will be critical to a resilient, clean energy system, and we are pleased to be working with UKEn to explore options for linking hydrogen networks with geological storage facilities. This will be critical to enable the growth of domestic hydrogen production and support the decarbonisation of industrial clusters and other energy users."