UK Oil & Gas PLC announced that its strategic Dorset and Yorkshire underground H₂ storage projects have received a further key letter of support (LOS) from RWE, a leading global energy company and one of the largest renewable and conventional UK electricity generators, supplying around 15% of UK power demand. RWE is also a major player in the UK green H₂ space, a sector with key synergies to UKEn's storage projects.

RWE's planned green H₂ plants within the Solent Cluster, Didcot and Teesside, are both in geographic and planned pipeline proximity to UKEn's storage projects and present the opportunity to store H₂ created from excess renewable power for future conversion to power during periods when the wind doesn't blow, the sun doesn't shine, or there are unforeseen power demand spikes.

The company's storage projects are operated by its wholly owned subsidiary UK Energy Storage (UKEn).

Mr Jeremy Smith, RWE UK's Head of H₂ Business Development commented in the LOS said, "We see the operation of UKEn's H₂ storage projects as being potentially beneficial to RWE for the following reasons:

• It will enable us to offer firm H₂ supply contracts and to manage production outages
• It will allow us to optimize electricity cost and electrolyzer operating regime in response to renewable generation capacity and wholesale market price signals
• It will enable the efficient sizing of our optimized production facility to most efficiently meet our expected offtaker demand
• It will help to smooth our H₂ 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 government and your proposed submission for revenue support via H₂ storage allocation rounds."

The RWE LOS along with similar LOS from major Japanese trading house Sumitomo and H₂ pipeline provider SGN (see RNS of 29th May and 27th June 2024) will be used as required documentation for the Company's future application for government H₂ storage Revenue Support over the coming months. The LOS identifies a potentially significant storage user together with highlighting the wider positive impact of UKEn's planned storage upon the efficient operation of the wider H₂ energy system.

Whilst the company's strategic 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 projects which will remain the focus of the company's overall future strategy. The company expects to receive further LOS and agreements with strategic partners in due course.

Stephen Sanderson UKOG's Chief Executive said, "We are most grateful that RWE, a leading global electrical power provider and major player in the UK H₂ space, has given its support to our projects. Their recognition of the potential benefits our storage could bring to RWE's green H₂ projects further underscores our project's credentials and the significant impact they could have on the UK's H₂ economy and energy security.

This LOS together with those from Sumitomo and SGN will help build both our application for government revenue support and provide identified potential strategic investors comfort that the projects can be successfully delivered."