UK Oil & Gas PLC (UKOG) has signed an agreement with Portland Port Limited (PPL) to lease two sites at the former Royal Navy port in Dorset, with the intent to develop an integrated energy hub. The plan would integrate a proposed new LNG terminal with a substantial new hydrogen storage and green hydrogen generation facility.
The planned energy hub development concept seeks to reinvigorate and build further upon a prior unrealised project by Portland Gas Storage Ltd, granted planning consent by Dorset County Council in 2008, to situate approximately 43 billion ft³ (bcf) of underground salt cavern storage beneath PPL’s land.
The plan is to develop a strategically located hydrogen ready energy hub within an active harbour site withup to 43 bcf of hydrogen-ready salt cavern storage. For context, if this capacity is ultimately achieved it would materially increase the UK’s current reported 61 bcf total working underground gas storage capacity.
As per the prior 2008 project, the new pipeline would be designed with an envisaged capacity designed to be capable of handling up to 1 /day. For context, this throughput capacity, if achieved, would equate to approximately one seventh (14%) of current estimated UK daily natural gas consumption.
UKOG and its consultant Xodus plan to develop future potential to supply renewable electricity for green hydrogen production at the site via an over-the-horizon floating windfarm, an area of Xodus expertise.
LNG import terminal
There will be the addition of a new planned LNG import facility in the port, designed to optimise cavern-fill cycle times and maximise revenues. The company’s ambition is to source long-term LNG from the USA and other secure suppliers.
The development is planned to be ‘future-proofed’ by engineering designed to transition seamlessly into green hydrogen production and storage as the ‘hydrogen economy’ evolves.
There will also be an investigation into the potential for using future green hydrogen generation at the port to directly fuel future hydrogen propelled ships, plus the option of future green hydrogen export by ship will also be explored.
The company now intends to complete further detailed engineering and commercial studies, followed by the preparation and submission of a detailed planning application.
