AIM-listed UK Oil & Gas (UKOG) just dropped its unaudited interim results for the six months ended March 31, 2026 — and they confirm what’s been building for a while: this company is leaving oil and gas behind. The focus now is large-scale geological hydrogen storage, with two projects taking shape in South Dorset and East Yorkshire.
These results mark a real turning point. UKOG spent years running conventional hydrocarbon assets in the UK. What’s driving the pivot—and how far along those hydrogen storage plans actually are—is what we’ll get into below.
UKOG publishes H1 2026 results amid strategic energy transition
UKOG’s leadership framed the six months ended March 31, 2026, as a period of “significant strategic progress.” Looking at the numbers and decisions that came out of it, that’s not just corporate spin. The transition away from conventional hydrocarbons isn’t aspirational anymore—it’s operational, with technical studies, corporate disposals, and institutional partnerships all moving simultaneously.
The engine behind that transition is wholly owned subsidiary UK Energy Storage (UKEn), developing two underground salt cavern hydrogen storage projects: one west of Weymouth in South Dorset and another planned for East Yorkshire. Both are being built toward eligibility for the UK Government’s Hydrogen Transport and Storage Business Model (HT&SBM) allocation rounds, scheduled to kick off in 2026. The period also saw UKOG restore trading of its ordinary shares on AIM on October 1, 2025 — a milestone that set the stage for the fundraising and operational moves that followed.
Strategic partnerships and MOUs underpin hydrogen storage ambitions
UKEn’s biggest institutional moves during the period were memoranda of understanding with two major gas network operators. In October 2025, UKEn signed an MOU with National Gas Transmission, linking the East Yorkshire project to Project Union — the proposed national 100% hydrogen transmission backbone. That network’s first phase is targeted for operation by 2032 and is expected to connect the East Coast hydrogen cluster.
National Gas has publicly recognized how important large-scale hydrogen storage is for balancing supply and demand on a future national hydrogen pipeline system. The MOU sets up potential joint engagement under the HT&SBM, giving both parties a shared reason to push the East Yorkshire project forward.
Then in March 2026, UKEn signed a second MOU with Wales & West Utilities (WWU), the principal gas distribution network operator for Wales and the South West of England. That agreement creates a framework for connecting the South Dorset facility to WWU’s proposed HyLine South West hydrogen transmission system, structured—like the National Gas deal—around potential joint applications under the HT&SBM.
Beyond those headline agreements, UKEn pulled in letters of support from Sumitomo, SGN, RWE, and the Solent Cluster. The subsidiary also became a founding member of the Dorset Clean Energy Supercluster, joined Hydrogen South West, and signed up with the UK Ammonia Alliance—a network UKOG sees as complementary to its Dorset ambitions, given Portland Port’s potential as a clean energy import and export hub.
South Dorset project design confirmed; East Yorkshire study under way
European firm DEEP. KBB GmbH — one of Europe’s leading salt cavern design and underground energy storage specialists — completed a preliminary project design for the South Dorset facility. The design confirms the site can support 24 salt caverns arranged in three clusters of eight, at a depth of approximately 4,363 feet below the surface.
UKOG describes South Dorset as the only planned national-scale hydrogen storage node in southern England. That positioning gives it weight beyond regional energy supply. The south coast location opens up potential for maritime hydrogen import and export, connecting domestic storage to international clean energy trade routes—an angle a purely inland site simply couldn’t offer.
The project sits at the core of the £28 billion Dorset Clean Energy Super Cluster, officially launched at UKREiiF in May 2025. Backed by Dorset Council, the cluster combines hydrogen production and storage, 2 GW of offshore wind in the English Channel, carbon capture and storage, and a new deepwater facility at Portland Port.
For East Yorkshire, UKOG has brought in DEEP. KBB to run a concept feasibility study near the existing Aldbrough gas storage facility, operated by SSE Thermal and Equinor. Technical studies and land acquisition are ongoing, with the goal of hitting HT&SBM eligibility criteria. The feasibility results hadn’t been published by the time the interim results came out.
The company exits legacy oil and gas assets and raises £5 million
UKOG’s transition isn’t just about building new things — it’s also about clearing out the old ones. During the period, the company completed the plugging and abandonment of the Broadford Bridge-1/1z well. The disposal of UKOG (GB) Limited became effective on December 3, 2025, following approval from the North Sea Transition Authority.
After the period end, in June 2026, UKOG agreed to sell its entire 85.635% interest in the Horse Hill field and the surrounding PEDL137 license to Energy B PLC for £1.0 million, subject to regulatory approval — described by the company as a further milestone in its planned exit from UK onshore oil and gas. Share placings in October and November 2025 raised £5 million, with proceeds directed toward technical and economic studies across both hydrogen storage projects as they move toward HT & SBM readiness.
Government hydrogen policy framework shapes UKOG’s positioning
UKOG’s hydrogen pivot is timed to line up with a shifting UK policy environment. The Government has committed to building a national hydrogen economy, and the HT&SBM — which will provide a potential revenue framework for hydrogen transport and storage projects — is set to open allocation rounds in 2026.
Without large-scale underground storage, balancing seasonal and daily swings in supply and demand across a national hydrogen pipeline network gets considerably harder. National Gas has acknowledged exactly that. Projects like UKEn’s are designed to fill that gap. South Dorset’s coastal position adds another layer: it makes the site a candidate for maritime hydrogen import and export, potentially tying domestic infrastructure into international supply chains in ways that inland storage nodes can’t.
£5 million was raised for technical work
UKOG has used its H1 2026 interim results to show that its transformation from a conventional oil and gas company is well advanced. Two MOUs with major gas network operators. Preliminary engineering confirmation for South Dorset. DEEP. KBB engaged for an East Yorkshire feasibility study. Legacy hydrocarbon assets divested. And £5 million was raised to fund ongoing technical work.
Both hydrogen storage projects are being developed to meet HT&SBM eligibility criteria, with allocation rounds expected to begin in 2026. South Dorset is positioned as the only planned national-scale hydrogen storage node in southern England; East Yorkshire is moving forward near an established gas storage site with existing infrastructure close by.
The transition isn’t done — Horse Hill’s sale still needs regulatory approval, and the East Yorkshire feasibility results are pending. But the direction is clear, and the institutional relationships now in place give UKOG a real framework to pursue its hydrogen ambitions inside the UK’s emerging clean energy policy structure.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
