Orkney Islands Council in the UK has reached agreement with bulk storage company Dynamic to lease underground oil tanks in Lyness on Hoy in Orkney.
Dynamic Tank Storage, a Scottish subsidiary of Sweden-based bulk storage company Dynamic Storage, will refurbish the tanks. The potential users include some of the European State oil reserve agencies that will use the tanks to store oil as strategic reserves.
The six underground oil storage tanks are built into the hill behind Lyness. The total capacity of the concrete tanks is 120,000 m3. The four principal tanks are approximately 700ft long with a width and height estimated to be about 35ft.
The underground oil tanks were built for the Royal Navy in 1939 and were last used in 1976. The project should bring in an estimated £1.5 million (2 million) revenue over 15 years to the council from rental charges and harbour fees when the tanks are filled.
The oil tankers will use a deepwater berth which is connected by an underground pipe to the storage tanks.