UK Energy Storage (UKEn) recently announced plans to lease land for a second underground salt cavern hydrogen storage facility in Dorset.
This initiative is positioned as a significant step toward meeting the UK’s hydrogen storage needs. However, while the project is ambitious, it raises critical questions about its scalability, alignment with broader industry goals, and the challenges it may face.
The proposed site in Dorset lies above the thickest onshore section of the Dorset Triassic salt deposit, aiming to provide approximately 6.5-10 TWh of hydrogen storage annually. This capacity, claimed to represent around 10-20% of the UK’s estimated hydrogen storage demand by 2050, appears promising on paper. However, it is essential to consider whether this location is truly optimal for long-term strategic objectives.
The facility’s proximity to SGN’s planned H2 Connect hydrogen pipeline is certainly advantageous, potentially enabling seamless integration into the Solent Cluster and the broader southern UK hydrogen supercluster. Yet, the success of this strategy hinges on the timely completion and operational efficiency of the H2 Connect pipeline. Delays or technical issues with the pipeline could undermine the storage facility’s utility, making the location less of an asset and more of a liability.
Meeting the UK’s 2050 Hydrogen Goals: Is This Enough?
UKEn’s facility is designed to address a portion of the UK’s projected hydrogen storage needs by 2050. However, the estimated 6.5-10 TWh per year covers only a fraction of the required capacity. While this initiative represents progress, it falls short of a comprehensive solution. With hydrogen storage demand expected to escalate significantly, the current scale of UKEn’s project may need to expand or be supplemented by additional facilities to meet future requirements.
Moreover, the reliance on a single type of storage—underground salt caverns—may not offer the flexibility needed for a diversified hydrogen economy. Other storage methods, such as above-ground tanks or liquid hydrogen storage, could be necessary to ensure the resilience and adaptability of the UK’s hydrogen infrastructure.
UKEn’s plan to apply for government Revenue Support for the Dorset facility underscores the financial challenges associated with large-scale hydrogen storage projects. While securing such support could provide the necessary capital to advance the project, the process is competitive and uncertain. The outcome will likely depend on how well UKEn’s proposal aligns with the UK government’s broader energy strategy and its ability to demonstrate economic and environmental benefits.
RWE’s letter of support for UKEn’s hydrogen storage projects is a positive endorsement, potentially strengthening UKEn’s position in discussions with the government. However, it remains to be seen whether this backing will translate into tangible financial support or merely serve as a symbolic gesture.
