Funding awarded for study on hydrogen storage potential in North Yorkshire

29 September 2025

3 minutes

Hydrogen

Media Relations

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

Knapton H2 Storage is a consortium led by gas distributor Northern Gas Networks and partnered with BGS, Centrica Energy Storage+, Third Energy Onshore and the University of Edinburgh. The consortium has been awarded ‘Discovery’ funding by Ofgem’s Strategic Innovation Fund (SIF) to undertake a new study to evaluate geological storage potential in the Knapton area, North Yorkshire. The Ofgem SIF funding is designed to drive innovation in energy networks as part of the ‘Revenue = incentives + innovation + outputs’ (RIIO-2) price control for gas and electricity networks.

Energy storage and backup power will become increasingly important as the UK increases the amount of renewable energy supplying electricity. This study is the first of its kind in the region and will undertake a feasibility assessment of the area’s geology to host energy storage technologies, allowing for the decarbonisation of adjacent gas-fired peaking power plants (those that only run when there is high demand) such as that at Knapton.

“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."

Chris McClane, Energy Transition Interface Manager at Centrica

The Knapton, Vale of Pickering and North Yorkshire area hosts a fantastic diversity of geology that may be used for storing hydrogen. The region contains numerous depleted hydrocarbon reservoirs that may have potential for repurposing, alongside other porous rock aquifers, salt deposits and rocks that may support lined rock shafts. The study will generate an understanding of what is possible for hydrogen storage at scale in the local area, supporting the area’s local economy and the UK’s energy security.

Keith Owen, Head of Energy Futures at Northern Gas Networks said: 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.

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.”

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.”

Notes to Editors:

Centrica: Centrica is an international energy and services company, founded on a 200-year heritage of serving customers in homes and businesses. We supply energy and services to over 10 million residential and business customers, mainly in the UK and Ireland, through brands such as British Gas, Bord Gáis Energy and Centrica Business Solutions. Centrica has a role at every step of the energy transition. When it comes to energy, we make it, store it, move it, sell it and mend it. We are energising a greener, fairer future.

Northern Gas Networks: Since we started operating in 2005, we’ve been leading the way as one of the most cost-efficient of the UK’s eight gas distribution networks. We deliver great value for money to our customers, as well as a whole host of social and economic benefits to our region. We’re recognised as a dynamic, passionate, conscious and people-focused team that safely and reliably delivers gas to over 2.9 million homes and businesses across the North East, northern Cumbria and much of Yorkshire. Although we don’t source the gas, fix boilers and appliances, or get involved with plumbing, we work with those that do to deliver it through a vast network of underground pipes that are constantly being invested in and upgraded. It’s more complicated than it sounds so we’re always exploring cutting-edge thinking, revolutionary engineering practices and world-class science to find new ways to provide sustainable sources of energy. And while our customers may not see us very often, they can sleep soundly knowing that we’re working around the clock to keep them connected and make sure they stay safe.

Future of Gas: Here at Cadent we support the Government’s plans to reach Net Zero by 2050. That means we’re backing low carbon alternatives to natural gas for the future. We know people love the controllability of gas and, with our network already in place, it makes sense to switch to the lower carbon alternative offered by both biomethane and hydrogen, which we believe can keep homes and businesses warm for generations to come.

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