Funding awarded for study on hydrogen storage potential in North Yorkshire
A new study has been awarded funding to explore the potential for underground hydrogen storage near the Knapton power plant.
22/09/2025 By BGS Press
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.
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.
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.
Edward Hough, research lead in underground energy storage at BGS.
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.
Keith Owen, head of energy futures at Northern Gas Networks.
Centrica’s Knapton site is being redeveloped as a multi-vector energy hub for solar generation, green hydrogen production and battery storage. But without dedicated hydrogen storage, its ability to support seasonal balancing, system resilience and flexible dispatch (H2P) will be fundamentally constrained. This project will advance integration readiness at Knapton and commercial readiness of storage technologies, whilst unlocking a replicable model for medium- to large-scale hydrogen storage to support H2P roll-out and network resilience.
Chris McClane, energy transition interface manager at Centrica.
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