Proactive Investors - UK Oil & Gas PLC (LON:UKOG) jumped another 23% as its Dorset and Yorkshire underground hydrogen storage project a letter of support from 'big five' UK energy supplier RWE (LON:0HA0).
Germnay-based RWE has plans for green hydrogen plants within the Solent Cluster, Didcot and Teesside and in geographic and planned pipeline proximity to UKOG subsidiary UKEn's storage projects.
Jeremy Smith, RWE UK's Head of Hydrogen Business Development commented in the letter: "We see the operation of UKEn's hydrogen storage projects as being potentially beneficial to RWE for the following reasons:
- enable us to offer firm hydrogen supply contracts and to manage production outages;
- allow us to optimise electricity cost and electrolyser operating regime in response to renewable generation capacity and wholesale market price signals;
- enable the efficient sizing of our optimised production facility to most efficiently meet our expected offtaker demand;
- help to smooth our hydrogen production profile with the store acting as a buffer.
“In support of this proposal, we have committed to working with UKEn to ensure that the design and delivery of the storage facility meets the needs of RWE and other potential industry users."
"We are giving permission for you (UKEn) to reference RWE as a "supporting party" in discussions with the government and your proposed submission for revenue support via hydrogen storage allocation rounds."
UKOG already has a similar letter from Japanese trading house Sumitomo and hydrogen pipeline provider SGN, with all three letters to be used to support its application for government hydrogen storage Revenue Support.
Stephen Sanderson, UKOG's chief executive, commented: [RWE’s] recognition of the potential benefits our storage could bring to its green hydrogen projects further underscores our project's credentials and the significant impact they could have on the UK's hydrogen economy and energy security.”
Shares jumped 23% to 0.09p.