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Funding awarded to study hydrogen storage at former UK gas plant

Funding awarded to study hydrogen storage at former UK gas plant

Pamela Largue
Posted on: 30 September 2025

A new study has been awarded funding to explore the potential for underground hydrogen storage near the Knapton power plant in North Yorkshire, UK.

Knapton site. Image credit: Centrica

A new study has been awarded funding to explore the potential for underground hydrogen storage near the Knapton power plant in North Yorkshire, UK.

The funding has been awarded by Ofgem’s Strategic Innovation Fund (SIF) to a consortium led by gas distributor Northern Gas Networks. Other members of the consortium supporting the study include BGS, Centrica Energy Storage+, Third Energy Onshore and the University of Edinburgh.

The funding will be used to conduct a feasibility study to assess whether the area’s geology can host energy storage technologies that can be used to decarbonise the adjacent gas-fired peaking power plants at Knapton.

According to Centrica, the Knapton, Vale of Pickering and North Yorkshire area contains numerous depleted hydrocarbon reservoirs, as well as other porous rock aquifers, salt deposits and rocks that may support lined rock shafts. These geological structures support the possibility of hydrogen storage.

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Edward Hough, research lead, Underground Energy Storage at the British Geological Survey said: “The natural geology of the area around Knapton will play an important role in supporting the use of hydrogen in the region. Storing hydrogen gives flexibility to the energy system, allowing excess hydrogen to be stored for use during periods when demand exceeds supply. In this project, BGS will build on its extensive laboratory and mapping programmes to help identify areas of the underground geology that may represent future exploration targets for hydrogen storage in bedrock.”

Keith Owen, head of Energy Futures at Northern Gas Networks commented in a statement: "As more renewables come online, energy storage will be critical to UK energy security and to clean power. Understanding the full potential for storing hydrogen at scale through Knapton H2 Storage will give us key insights into how we can deliver technologies to provide clean resilience on the days where the sun doesn’t shine and the wind doesn’t blow."

Gas production at the Knapton power plant site ended in 2019, with Centrica acquiring the site from Third Energy in 2023.

Centrica plans to turn the site into a green energy hub with solar power, a 28MW battery and on-site hydrogen generation.

Chris McClane, Energy Transition Interface manager at Centrica said: “Centrica’s Knapton site is being redeveloped as a clean energy hub for solar generation, green hydrogen production, and battery storage. We’re also exploring hydrogen storage as it offers a reliable, flexible solution to support the energy system of the future that will require diverse fuel supplies ready for when the sun doesn’t shine and wind doesn’t blow. This project will advance the readiness of hydrogen storage technologies by unlocking a replica model to realise its potential at scale to supply hydrogen-to-power generation.”

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