UK Ofgem Awards £500,000 for Hydrogen Storage Project
2026-07-04 11:27
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en.Wedoany.com Reported - The UK energy regulator Ofgem has selected a concept validation study on geological hydrogen storage for flexible power generation, supporting it in the latest round of funding allocation.

The project is led by Northern Gas Networks (NGN). After completing an initial feasibility study last year, NGN has secured £500,000 (approximately $668,000) in funding to advance plans for constructing an underground hydrogen storage facility near the decommissioned Knapton power station in North Yorkshire.

The Knapton site was acquired by British energy giant Centrica in 2023, four years after the gas-fired power station ceased generation. Centrica plans to transform the site into a "green energy hub" to support the decarbonization of a neighboring peaking power plant—a facility that generates electricity only during peak demand periods.

NGN will collaborate with the British Geological Survey, Ceraphi Energy, National Gas, the University of Edinburgh, and Wales & West Utilities to store hydrogen and flexibly deploy it to fuel nearby power stations. NGN stated that the local Vale of Pickering region features "extremely diverse geological conditions" suitable for hydrogen storage, including depleted oil and gas reservoirs, porous rock aquifers, and salt formations.

Chris McClane, Centrica's Energy Transition Interface Manager, noted last year that without "dedicated hydrogen storage facilities," Knapton's ability to support seasonal grid balancing and flexible power dispatch "would be fundamentally constrained."

The funding for the Knapton project comes from the fifth round of Ofgem's Strategic Innovation Fund (SIF). The previous SIF round in September last year provided approximately £150,000 for the project to conduct a feasibility study. Ofgem allocated a total of £22.9 million to 18 projects in the energy network sector, including a feasibility assessment for shared ownership of generators and a project mapping quantum cyberattack threats to the grid. Southern Gas Networks received nearly £150,000 to study the feasibility of producing synthetic methane using marine carbon dioxide.

Marzia Zafar, Ofgem's Deputy Director for Digitalization and Innovation, stated that the latest funding round marks "a significant step forward in accelerating the pace of innovation needed to transform the energy system" and that "it is essential to continue supporting bold, scalable solutions that deliver tangible benefits for consumers and help drive the transition to net zero."

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