UK Oil & Gas PLC said on Wednesday that its clean energy subsidiary, UK Energy Storage, has signed a memorandum of understanding (MOU) with Wales & West Utilities aimed at integrating the planned South Dorset hydrogen storage project into a regional hydrogen network.
The announcement states that access to large-scale storage will be an important element in balancing hydrogen supply and demand, with the South Dorset facility identified as a potential anchor asset in that system. The two organizations will explore how the South Dorset salt-cavern storage site could be linked - either directly or indirectly - with HyLine South West.
Under the terms of the MOU, the parties intend to investigate connection options between HyLine South West and UK Energy Storage's South Dorset site and to assess the case for a combined approach to securing government support. Specifically, they will consider a joint bid under the Hydrogen Transport and Storage Business Model allocation process.
The companies also committed to cooperative efforts to encourage broader hydrogen pipeline and storage buildout across the South West and throughout Wales & West Utilities' wider footprint. The memorandum frames the South Dorset project as a candidate to serve as a central storage hub that could help stabilize regional hydrogen flows.
The MOU does not commit the parties to any definitive engineering, construction, or financing steps; it formalizes an intent to study linkage options and to pursue possible government backing together. The focus set out in the agreement is on exploration, planning, and joint promotion of pipeline and storage development within the geographic areas covered by the two organizations.
While the statement highlights the critical role of large-scale storage in balancing supply and demand, it does not provide further details on timelines, technical specifications, or capacity targets for the South Dorset site or for any pipeline connections with HyLine South West. The MOU represents an early-stage collaboration intended to clarify options and to position the parties for potential participation in the Hydrogen Transport and Storage Business Model allocation process should they decide to proceed with a joint bid.
As described in the announcement, the collaboration is intended to advance regional hydrogen infrastructure by combining UK Energy Storage's planned salt-cavern capability with Wales & West Utilities' pipeline network and operational footprint, subject to subsequent studies, decisions, and any regulatory or funding outcomes from the relevant government allocation process.