PLANS for a major gas storage facility on Portland have been “warmly welcomed” by the Secretary of State for Business, Energy and Industrial Strategy.

Kwasi Kwarteng, MP for Spelthorne, has responded to proposals put forward by UK Oil & Gas Plc (UKOG) that would see caverns created from existing salt deposits in order to develop a hydrogen storage facility.

As reported, UKOG has signed an Agreement to Lease with Portland Port covering two sites at the former navy base for an 'Energy Hub'.

The Hub - which would need planning consent - would centre around hydrogen-ready gas storage alongside future capability for green hydrogen generation.

In a letter, seen by the Echo, the Secretary of State said hydrogen storage is “essential” and that he “warmly welcome(s)” the planned development.

He added “it would be useful to receive further information on the scale and ambition” of the project and requested the opportunity to meet UKOG to discuss the proposals in further detail.

Mr Kwarteng said: ”Alongside raising our production ambition, we know that (a) hydrogen network and storage infrastructure will be essential to the development of the hydrogen economy, providing the link between production and demand.

“In particular, hydrogen’s ability to store energy for long periods of time and in large quantities is central to its strategic value to a fully decarbonised energy system and we envisage hydrogen storage being a key part of future network infrastructure.

“As such, I warmly welcome UKOG’s project proposal.”

The project builds on a similar, unfulfilled, proposal by Portland Gas Storage that was granted planning permission by Dorset County Council in 2008.

Under the new proposals it is hoped that the Energy Hub would open by 2025 and serve as ‘a needed kickstart’ for the local economy.

Brian Alexander, Communications Director at UKOG, said under the plans, the Energy Hub could store up to 14% of the current estimated daily natural gas consumption in the UK.

He said: “Our focus is looking ahead to when the country shifts to a sustainable hydrogen economy and creating the infrastructure that means we can lead the way on that.”