Hydrogen Storage Project update: Sumitomo LOS

UK Oil & Gas PLC

29 May 2024

 

UK Oil & Gas PLC

("UKOG" or the "Company")

Hydrogen Storage Project update: Sumitomo LOS

UK Oil & Gas PLC (London AIM: UKOG) UK Oil & Gas PLC (London AIM: UKOG) is delighted to announce that the Company's planned strategic Dorset and Yorkshire Hydrogen Storage projects have received a  letter of support ("LOS") from Summit Energy Evolution Ltd ("SEEL"), a wholly owned subsidiary of major Japanese trading conglomerate Sumitomo Corporation ("Sumitomo").

The LOS states that SEEL, Sumitomo's UK based hydrogen and energy transition subsidiary, "commits to continue to cooperate with UK Energy Storage ("UKEn"), UKOG's wholly owned Hydrogen Storage subsidiary, with a view to SEEL or Sumitomo investing in UKEn's future hydrogen storage projects". It also details  that "UKEn's hydrogen storage projects could provide keystone storage for SEEL's Bacton Hydrogen (generation) Project", a proposed 590 Mega Watt low-carbon hydrogen generation facility located close to the existing Bacton Natural Gas Terminals in Norfolk.

This first LOS is an important step for the Company's hydrogen storage projects as applicants for government funded Revenue Support via the Department of Energy Security and Net Zero's ("DESNZ") forthcoming First Hydrogen Storage Allocation Round ("Allocation Round") will be required to furnish such LOS from identified hydrogen storage users and financial backers in order to be successful.

UKEn plans to apply for government Revenue Support for at least one of its hydrogen storage projects in the forthcoming Allocation Round, currently scheduled by DESNZ to commence in Q3 this year, post General Election.

Whilst UKOG's proposed hydrogen storage projects are at an early engineering design stage and there can be no certainty they will receive government Revenue Support, the Company is committed to furthering these key strategic UK infrastructure projects which remain a key part of the Company's overall future strategy. The Company expects to receive further LOS in due course.

The full LOS is available on the Company's website www.ukogplc.com .

Stephen Sanderson UKOG's Chief Executive commented;

"We are delighted that SEEL, the UK based energy transition subsidiary of one of Japan's most significant global trading houses, Sumitomo Corporation, has recognised the strategic significance and potential material future value of our planned hydrogen storage projects. Their LOS will help ensure we meet the application criteria in DESNZ's forthcoming Hydrogen Storage Revenue Support Allocation Round, a key step towards delivering our projects. We look forward to continued and fruitful cooperation with SEEL/Sumitomo and to securing further LOS from other potential storage users and investors".

For further information, please contact:

UK Oil & Gas Plc

Stephen Sanderson / Guzyal Mukhametzhanova                                                        Tel: [phone]

WH Ireland Ltd (Nominated Adviser and Broker)                                                            

James Joyce / James Bavister / Andrew de Andrade                                                   Tel: [phone]

Communications

Brian Alexander                                                                                                                   Tel: [phone]  

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon publication of this announcement, this information is now considered to be in the public domain.

 

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