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: 01483 941493
WH
Ireland Ltd (Nominated Adviser and
Broker)
James Joyce / James Bavister /
Andrew de Andrade
Tel: 020 7220 1666
Communications
Brian Alexander
Tel: 01483 941493
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.