UK Energy Storage

What UK Energy Storage does

UK Energy Storage (UKEn) is a UK-based energy infrastructure developer focused on large-scale underground hydrogen storage using engineered salt caverns. The company is a wholly owned subsidiary of UK Oil & Gas PLC (UKOG), publicly traded on the London Stock Exchange, and is developing two flagship sites: South Dorset (Portland Port) and East Yorkshire, with a combined target capacity of up to 2 billion cubic metres, representing up to 20% of the UK's predicted hydrogen storage needs by 2035 and approximately doubling the country's existing underground storage capacity. The core technology is new-build salt cavern storage created by dissolution mining of rock salt formations — a proven method used in the UK since the 1970s — offering near 100% hydrogen recovery efficiency and modular scalability, with only three UK regions (Dorset, Cheshire, Yorkshire) geologically suitable for large-scale cavern construction.

UKEn's sites are strategically positioned within the UK's two largest forecast hydrogen demand clusters — the South (including South Wales) and the East Coast/Teesside — which together account for 70% of National Grid's projected 2040 hydrogen demand. Both sites will connect to the national Project Union hydrogen pipeline, and the company is co-developing the HyLine South West regional pipeline with Wales & West Utilities. The South Dorset project alone is estimated at £1 billion in capital investment.

The business model is a B2B infrastructure developer model targeting long-term storage capacity contracts with hydrogen producers, industrial offtakers, power generators, and hydrogen network operators. UKEn is pursuing a government revenue floor mechanism under the Hydrogen Transport and Storage Business Model — providing minimum annual revenue covering capital costs, fixed opex, and return on investment for at least 15 years — supplemented by usage fees for injection and withdrawal capacity. Named target customers include Drax Power, Fawley Refinery, the Solent Region industrial cluster, and the Sumitomo-backed Bacton Hydrogen Project. The company is pre-revenue, with a stated mission to deliver the first UK hydrogen storage site by 2030.

Name

UK Energy Storage

Legal name

UK Energy Storage Ltd

Website

https://ukenergystorage.co.uk

Company type

Private

Founded year

2020

Operating status

Operating

Headcount range

11–50 employees

Short description

UK Energy Storage (UKEn) is a UK-based infrastructure developer building underground salt cavern hydrogen storage facilities at Portland Port (Dorset) and East Yorkshire, targeting up to 2 billion cubic metres of capacity for industrial clusters, hydrogen producers, and network operators supporting the UK's net zero transition.

Ownership category

akta.pro rank

Product category

Energy Storage Infrastructure

NAICS

Warehousing and Storage (4931), General Warehousing and Storage (493110)

SIC

Public Warehousing & Storage (4220), Oil & Gas Field Services, Nec (1389), Pipe Lines (No Natural Gas) (4610)

akta.pro primary industry

Underground Hydrogen Storage in Salt Caverns (Solution Mining, Cushion Gas, Cycling) (EUAFAEAD)

akta.pro secondary industries

Hydrogen Storage EPC, Engineering & Construction (Aboveground/Underground Facilities) (EUAFAEAK), Hydrogen Storage Operations, Maintenance & Asset Management Services (EUAFAEAL), Underground Storage (Salt Caverns, Depleted Reservoirs) (EUALAEAE)

Keywords

• Salt cavern hydrogen storage
• Underground energy storage
• Hydrogen storage infrastructure
• Hydrogen pipeline systems
• Clean energy storage

Headquarters

HQ city

Guildford

HQ country

United Kingdom

HQ region

Europe

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Operations, Technology or R&D, Personnel, Marketing or Sales

Revenue model

1. Hydrogen Storage Capacity Contracts: Revenue from providing hydrogen storage services to producers, offtakers, and network operators. Storage facilities will earn usage fees for injection and withdrawal capacity, plus payments for storage capacity options. Users include hydrogen producers, industrial offtakers, and power generators requiring hydrogen for balancing services.
2. Government Revenue Support (Hydrogen Transport and Storage Business Model): Revenue floor mechanism providing minimum annual revenue regardless of facility utilisation, covering capital costs, fixed operational costs, and return on investment. Government provides demand risk protection while operators retain incentive to maximise user revenue. Contract duration of at least 15 years. Both UKEn and WWU planning joint application for government revenue support.
3. Green Hydrogen Generation Add-ons: Exploring green hydrogen generation add-ons to storage projects, leveraging coastal locations for electrolysis and proximity to new windfarm power landfalls. Revenue from hydrogen production using excess renewable electricity.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels5 records

Core offering

UK Energy Storage (UKEn) develops large-scale underground salt cavern hydrogen storage infrastructure at Portland Port in South Dorset and in East Yorkshire, with planned capacity of up to 2 billion cubic metres. The facilities provide storage services including hydrogen injection, withdrawal, and capacity options to hydrogen producers, industrial offtakers, and network operators, integrated with the UK-wide Project Union hydrogen pipeline and the co-developed HyLine South West pipeline.

Product overview

UK Energy Storage (UKEn) is developing the UK's largest underground salt cavern hydrogen storage projects as a unified infrastructure portfolio. The core offering consists of two major storage sites—South Dorset (Portland Port) and East Yorkshire—using new-build salt cavern technology to provide up to 2 billion cubic meters of total storage capacity, targeting 20% of the UK's predicted hydrogen storage needs by 2035. These storage projects integrate with the HyLine South West hydrogen pipeline system (developed with Wales and West Utilities) and support the broader Solent Cluster hydrogen economy. The Portland Hydrogen Hub serves as a central node connecting hydrogen production, storage, and distribution across Southern England.

Differentiator

Problem solved

Functional benefit

Products and services

• South Dorset Hydrogen Storage Project Flagship hydrogen storage facility at Portland Port in Dorset, featuring underground salt caverns for large-scale hydrogen storage with planned connection to the national hydrogen pipeline network. Envisioned maximum annual capacity of 10 TWh, meeting up to 17% of the UK's forecast hydrogen storage needs by 2050, with initial 19 caverns delivering approximately 1 billion cubic metres of storage in Phase 1.
• East Yorkshire Hydrogen Storage Project Second major hydrogen storage site in East Yorkshire with initial planned capacity of 7 TWh annual output, potentially expandable to match Dorset capacity, positioned to serve the East Coast industrial cluster and Teesside hydrogen demand.
• HyLine South West Hydrogen Pipeline 100% hydrogen pipeline system being co-developed with Wales and West Utilities (WWU), connecting hydrogen suppliers, offtakers, and storage facilities in Wales and South West England region, linking UKEn's South Dorset storage to WWU's pipeline infrastructure.
• Portland Hydrogen Hub Strategic hydrogen hub centered on UKEn's system-level salt cavern storage facility at Portland Port, positioned between South Wales and Southampton industrial hubs to serve the Solent Cluster. Includes a system-level hydrogen battery to store excess renewable power for later peak power demand use.
• Salt Cavern Hydrogen Storage (Technology Platform) Underground salt cavern storage technology using dissolved rock salt formations dissolved via sea water (at Portland), providing hydrogen storage capacity with near 100% recovery efficiency compared to ~70% for depleted gas fields. Caverns are 90-100 metres in height and width, built approximately 2,400 metres below ground level at Portland.

Quantifiable outcome

• Up to 20% of UK predicted hydrogen storage needs by 2035
• +6 more outcomes

Named customers4 records

Segments5 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Two partnerships are on record, tiered core and flagship.

• Wales and West Utilities (WWU)coreStrategic or Co-development Partner · 1 October 2025MOU signed to develop 'HyLine South West' 100% hydrogen pipeline system connecting hydrogen suppliers, offtakers, and storage facilities in Wales and South West England region. Partnership aims to link UKEn's planned South Dorset hydrogen storage project with WWU's pipeline infrastructure. Both companies planning joint application for government revenue support under the Hydrogen Transport and Storage Business Model. Collaboration positioned as essential step toward establishing region's hydrogen economy and supporting industrial decarbonisation.
• Summit Energy Evolution Ltd (SEEL)flagshipStrategic or Co-development PartnerSEEL (wholly owned subsidiary of Sumitomo Corporation, joint developers of Bacton Hydrogen Project) expressed support for UKEn's hydrogen storage plans. Committed to ensuring supply from Bacton Energy Hub can contribute to future hydrogen storage capacities, aligning project schedules, promoting hydrogen economy benefits, and identifying opportunities for sustainable low-carbon energy infrastructure. SEEL/Sumitomo considering future investment in UKEn hydrogen storage projects. UKEn identified as potential keystone customer for Bacton project and facilitator for UK-wide hydrogen distribution system.

Scale indicators9 records

Recent moves6 records

Expansion highlights6 records

Broad incumbents

• RWE: European utility with a stated hydrogen storage strategy and large hydrogen/CCS pipeline including UK projects. Comparable as a deep-pocketed incumbent targeting UK/NW European hydrogen infrastructure build-out.
• SGN (Scotia Gas Networks): UK gas distribution network operator developing hydrogen networks (e.g. H100 Fife, HyDeploy). Comparable as a UK infrastructure operator pivoting to hydrogen with the same regulatory revenue-support pathway as UKEn.
• INEOS Energy: INEOS operates extensive underground hydrocarbon storage (including salt caverns in the UK and EU) and is actively developing hydrogen and CCS projects. Comparable as a large, capital-rich incumbent pursuing similar subsurface storage economics.
• National Gas Transmission: UK National Transmission System operator now scoping conversion to hydrogen (Project Union). Comparable as the counterparty infrastructure provider that UKEn's Dorset and Yorkshire caverns will connect into for offtake.
• Equinor: Norwegian energy major with a stated hydrogen and salt cavern storage strategy in NW Europe. Comparable as a deep-pocketed incumbent with both salt cavern expertise and hydrogen ambitions targeting UK/NW European industrial clusters.
• EDF: UK energy major with hydrogen ambitions and prior salt cavern gas storage involvement. Comparable as a capital-rich incumbent pursuing hydrogen storage economics in the UK market.

Direct peers

• Storengy: Subsidiary of ENGIE and the world's largest underground gas storage operator (salt caverns and aquifers in France, Germany, UK). Directly comparable as it is converting legacy natural gas storage assets to hydrogen storage — the same technical and economic model UKEn is pursuing.
• Wales & West Utilities: UK gas distribution network operator and UKEn's MOU partner on the HyLine South West 100% hydrogen pipeline. Comparable as a UK utility actively repurposing gas infrastructure for hydrogen and a co-applicant for Hydrogen Transport and Storage Business Model revenue support.

Emerging players

• HyNet North West: NW England hydrogen and CCS cluster project covering production, distribution, and storage (including salt cavern potential in Cheshire). Comparable as an emerging UK hydrogen cluster competitor vying for the same industrial offtakers and policy support.

Regional players

• Centrica Storage: Operator of the Rough gas field (which historically provided ~70% of UK underground gas storage — the same benchmark UKEn targets). Comparable as a UK-based operator of large-scale underground storage infrastructure facing the same hydrogen transition question.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/uk-energy-storage-uken
• Xx.com/UkEnergy85890

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about UK Energy Storage