UK Oil & Gas (UKOG) has received support from RWE for its Dorset and Yorkshire underground hydrogen storage projects.
With RWE’s green hydrogen initiatives in the Solent Cluster, Didcot and Teesside falling in geographic and planned pipeline proximity to the storage projects, there is an ideal opportunity to store hydrogen created from excess renewable power for future conversion when renewable output is low or power demand spikes. UKOG subsidiary, UK Energy storage (UKEn) will operate the projects.
According to RWE, the operation of the projects could be beneficial to them as they will enable RWE to offer firm hydrogen supply contracts and manage production outages, as well as aid them in optimising electricity cost and the electrolyser operating regime in response to renewable generation capacity and wholesale market price signals
Further benefits include how the projects will enable the efficient sizing of RWE’s optimised production facility to most efficiently meet its expected offtaker demand, and to smooth its hydrogen production profile with the store acting as a buffer. By supporting, RWE has also committed to working alongside UKEn to ensure the design and delivery of the storage facility meets its own needs, along with the needs of other potential industry users.
