Underground Hydrogen Potential Begins to Rear Head Again, But This Time With Funding

The UK’s push for hydrogen infrastructure has taken a step forward with Ofgem awarding £500,000 to National Gas and Gravitricity to develop a scalable underground hydrogen storage system.
The funding, part of the Strategic Innovation Fund, will support the development of Gravitricity’s H2Flexistore – a concept that buries high-capacity storage vessels in purpose-built shafts.
Unlike traditional salt cavern storage, which is constrained by geological availability, H2Flexistore’s multi-layered liner technology allows storage vessels to be installed in new underground shafts, each capable of holding up to 100 tonnes of hydrogen.
Modular Approach to “Scale Over Time”
This modular approach enables storage capacity to scale over time while offering a cost-effective alternative to above-ground pressure vessels and tanks.
National Gas, alongside Southern Gas Networks, Guidehouse, Edinburgh University, Energy Reform, and Premtech, will collaborate with Gravitricity to design and model a working system over the next six months, potentially leading to a demonstration project in 2026.
Gravitricity’s co-founder and chairman, Martin Wright, emphasised the strategic need for grid-scale energy storage, stating that commercial maturity for hydrogen storage technologies is crucial.
Kelvin Shillinglaw, Innovation Analyst at National Gas, highlighted the importance of embedding resilient hydrogen storage directly into the transmission system to maintain operational flexibility, reduce costs for consumers, and support decarbonisation efforts.
Other Underground Hydrogen Storage Developments
Beyond the H2Flexistore project, several other underground hydrogen storage initiatives are gaining traction:
- UK Government’s £500M Hydrogen Infrastructure Investment: A major funding boost aims to establish the country’s first regional hydrogen transport and storage network, connecting producers with industrial users and power stations.
- Project Union’s Hydrogen Backbone: A feasibility study is exploring how existing gas infrastructure can be repurposed for hydrogen storage and distribution.
- British Geological Survey’s Research on Underground Hydrogen Storage: A recent briefing outlines various underground storage methods, including salt caverns, lined rock caverns, and depleted gas fields, as scalable solutions for long-duration energy storage.
These developments signal growing momentum in underground hydrogen storage, positioning the UK as a leader in hydrogen resilience and energy security.