UK regulator funds underground hydrogen storage for power project | Hydrogen News

UK energy regulator Ofgem will provide an additional £500,000 ($672,000) of funding for feasibility studies into underground hydrogen storage in North Yorkshire.

The cash from the regulator’s Strategic Innovation Fund (SIF) will support gas operator Northern Gas Networks (NGN) to conduct geological feasibility assessments for a storage system that could supply hydrogen to local gas-fired power plants.

Backed with £146,695 ($197,260) by Ofgem in 2025, the Knapton H2 Storage project will also assess legacy gas assets in the region for their suitability as hydrogen storage sites.

Findings will feed into a forward-looking “Scalability and Adoption Plan” which NGN said will help apply learnings across the UK.

Jarred Knott, Energy Futures Project Manager at NGN, said that by addressing technologies and permitting requirements, the project could help to scale hydrogen storage nationally.

“This will enable a more flexible, secure and low‑carbon energy system, fit for the future,” he added.

The Knapton H2 consortium leading the project also features project partners including the British Geological Survey, Centrica Storage, and Ceraphi Energy.

The SIF is also supporting National Gas and Gravitricity’s underground hydrogen storage pilot, which involves burying high-capacity storage vessels in purpose-built shafts, creating a solution that doesn’t rely on favourable geology.

Large-scale underground hydrogen storage is viewed as essential for supporting hydrogen-to-power by providing buffer storage for periods of low renewables generation.

The UK and other countries in northern Europe host the salt cavern geology required to store gas underground.

Several pilot projects in the EU have started operations in the hope of proving former natural gas storage sites can transition to hydrogen.