Ofgem backs Scottish underground hydrogen storage project
The consortium, National Gas, has secured £500,000 from Ofgem to develop the innovative new type of underground hydrogen storage.
The system, known as H2FlexiStore, has been developed by Edinburgh energy storage developer Gravitricity, and is designed to hold up to 100 tonnes of green hydrogen in purpose-built underground lined shafts.
The technology can be located where required, for example as part of the National Gas network or next to large industrial users.
The Ofgem funding will enable a consortium – which also includes Southern Gas Networks, Guidehouse, Edinburgh University, Energy Reform and Premtech – to design and model a working system over the next six months, ahead of a potential demonstration phase next year.
Capacity comparisons. (Image: Gravitricity) The funding comes from Ofgem's Strategic Innovation Fund and follows the successful completion of a National Gas led feasibility study in 2024, which identified H2FlexiStore as the preferred technology to provide locationally flexible hydrogen storage.
Once the design project is successfully completed, a third and final project phase could be secured, which would see the delivery of a technical demonstration project, supported by multi-million-pound funding from the Strategic Innovation Fund.
A successful demonstrator project would validate the benefits of underground storage to the hydrogen industry and key infrastructure projects such as Project Union, which is investigating the potential to repurpose the existing gas grid for hydrogen to create a UK hydrogen backbone to connect production and storage assets to demand.
Martin Wright is a co-founder of the company. (Image: Gravitricity) Martin Wright, Gravitricity co-founder and executive chairman, said: "Given the strategic need for grid scale energy storage both nationally and internationally, it is crucial that enabling hydrogen storage technologies such as H2FlexiStore are commercially mature in time to offer cost effective resilience within current and future energy systems.
"This support from Ofgem, enables us to prepare both technically and commercially for the delivery of a demonstration project next year and the early commercial projects within our existing pipeline of opportunities."
Kelvin Shillinglaw, innovation analyst at National Gas, said: "This project is a critical step forward in ensuring the UK's gas networks are ready for a hydrogen-powered future.
"By embedding resilience with operational hydrogen storage directly into the transmission system, we can maintain operational flexibility, reduce costs for consumers, and support the decarbonisation of heat and power."
Airline hails 30 million passengers through Scottish airport
A major airline has hailed reaching a total of 30 million passengers through one Scottish airport since it started operating from the site.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scottish Sun
23 minutes ago
- Scottish Sun
Iceland to close two major stores starting in DAYS
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) SUPERMARKET chain Iceland is closing two stores starting in days as shoppers share their devastation. The frozen food specialist is shutting a location in Margate on the Kent coast on June 21. Sign up for Scottish Sun newsletter Sign up 1 Iceland is closing two stores starting in days Credit: Getty Meanwhile, a further branch will close for good in Inverness, Scotland, on July 12. The retailer said in a statement that staff at both sites have been offered roles at surrounding stores "where possible". But news of the closures has still been met with heartbreak from locals and shoppers. One, posting on Facebook about the Margate closure, said: "Margate is losing everything bit by bit." Another added: "Can the town centre get any worse with empty buildings." Commenting on the Inverness branch shutting, one shopper said: "Very sad to hear this news." Another chipped in: "I'm so gutted." The closure of the Inverness branch means there will no longer be any Iceland stores in the Scottish city. The nearest Iceland store will be in Aberdeen while there is a Food Warehouse, run by Iceland, in Inverness's Telford Street. It's not the first store closure made by Iceland in the past few months. Britain's retail apocalypse: why your favourite stores KEEP closing down It pulled down the shutters permanently on its site in Welling at the start of the year. A site in Borehamwood and another in Exeter permanently shut around the same time. The latest closures means Iceland has shut more than 20 stores since the start of 2023. It's worth bearing in mind retailers often shut branches in underperforming areas and open them where they think they'll get more footfall and sales. For example, it's not all bad new for Iceland as in 2024 it announced plans to open more of its Food Warehouse format stores across the UK. Food Warehouse stores, run by the Iceland Foods Group, are generally larger than Iceland shops and usually found in retail parks. OTHER RETAIL CLOSURES The retail sector has struggled in recent years due to the onset of online shopping and lockdowns during the coronavirus pandemic. Higher inflation since 2022 has also hit shoppers' budgets while businesses have struggled with higher wage, tax and energy costs. The Centre for Retail Research has described the sector as going through a "permacrisis" since the 2008 financial crash. Figures from the Centre also show 34 retail companies operating multiple stores stopped trading in 2024, leading to the closure of 7,537 shops. This was the highest number of stores affected in a calendar year since the Centre started collecting this data in 2007. On top of these more than 7,500 stores, over 11,000 independent shops closed in 2024. This is in addition to almost 7,800 independent stores that closed in 2023. RETAIL PAIN IN 2025 The British Retail Consortium predicted that the Treasury's hike to employer NICs will cost the retail sector £2.3billion. Research by the British Chambers of Commerce showed that more than half of companies planned to raise prices by early April. A survey of more than 4,800 firms also found that 55% expect prices to increase in the next three months, up from 39% in a similar poll conducted in the latter half of 2024. Three-quarters of companies cited the cost of employing people as their primary financial pressure. The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year. It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year. Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025." Professor Bamfield has also warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector. "By increasing both the costs of running stores and the costs on each consumer's household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@ Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
The Herald Scotland
3 hours ago
- The Herald Scotland
Badenoch to call for end to oil and gas windfall tax and ban on new licences
Designed to fund interventions to bring down household bills, the policy has been criticised by those in the industry. Speaking at the Scottish Conservative conference in Edinburgh on Friday, Mrs Badenoch is expected to tout the oil and gas sector, accusing the UK Government of 'killing' it, claiming 'renewing our party and our country means standing up for our oil and gas industry'. She will add: 'When the oil and gas windfall tax, the energy profits levy, was brought in, the oil price was near a historic high, at the exact time as energy bills for the British people were sky-rocketing. 'But there is no longer a windfall to tax. It has long gone. And the longer this regressive tax on one of our most successful industries remains, the more damaging it becomes. 'Labour have extended and increased this tax. They are killing this industry.' If the measure remains in place to 2030 as intended, Mrs Badenoch will say 'there will be no industry left to tax'. She will add: 'So, today, I say enough. Labour must remove the energy profits levy. Labour must speed up the process of replacing it with a system that rewards success and incentivises investment. 'Because we shouldn't have this energy profits levy at all. 'We must scrap the ban on new licences. 'We must overturn the ban on supporting oil and gas technology exports. Kemi Badenoch will say the energy profits levy should end (PA) 'And we must champion our own industry. 'We must let this great British, great Scottish industry thrive, grow and create jobs – ensuring our energy security for generations to come, driving growth and making this country richer in the process.' Mrs Badenoch will address her first Scottish party conference as leader on Friday while her counterpart north of the border Russell Findlay will deliver his inaugural address on Saturday. Responding to Mrs Badenoch, Simon Francis of the End Fuel Poverty Coalition said her comments were 'out of touch', adding: 'Even with the windfall tax in place, the energy industry made over £115 billion in profits in 2024 alone. 'Meanwhile, average household energy bills remain hundreds and hundreds of pounds higher than they were before the energy crisis started. 'While the Government is right to be consulting on reform of the windfall tax, maintaining a profits levy could help fund home upgrades and a social tariff which would bring down energy bills for the most vulnerable in society.' SNP MSP Kevin Stewart said: 'The Tories wrecked our economy, presided over soaring household bills and ripped Scotland from the EU against our will. 'And now they're lurching further to the right as they haemorrhage votes to Nigel Farage. 'This weekend will be an important reminder of how Westminster has failed Scotland. Only the SNP is offering hope and a brighter future as an independent nation.' Scottish Labour deputy leader Jackie Baillie said: 'While the Tories and SNP let energy workers down by failing to plan for the future, Scottish Labour is committed to taking action towards reaching net zero, creating jobs and cutting energy bills. 'The Tories are on the side of oil and gas giants rather than working Scots, but Scottish Labour will work with the UK Government and use devolved powers to deliver a just transition for the industry. 'With Kemi Badenoch desperately attempting to rally the few remaining Scottish Tories, it seems like it won't be long until they can fit all of their MSPs in a single taxi.'
Powys County Times
3 hours ago
- Powys County Times
Badenoch to call for end to oil and gas windfall tax and ban on new licences
Tory leader Kemi Badenoch is set to call for an end to the windfall tax on oil and gas companies and the ban on new licences. The energy profits levy was put in place under the previous Conservative government but extended when Labour entered power. Designed to fund interventions to bring down household bills, the policy has been criticised by those in the industry. Speaking at the Scottish Conservative conference in Edinburgh on Friday, Mrs Badenoch is expected to tout the oil and gas sector, accusing the UK Government of 'killing' it, claiming 'renewing our party and our country means standing up for our oil and gas industry'. She will add: 'When the oil and gas windfall tax, the energy profits levy, was brought in, the oil price was near a historic high, at the exact time as energy bills for the British people were sky-rocketing. 'But there is no longer a windfall to tax. It has long gone. And the longer this regressive tax on one of our most successful industries remains, the more damaging it becomes. 'Labour have extended and increased this tax. They are killing this industry.' If the measure remains in place to 2030 as intended, Mrs Badenoch will say 'there will be no industry left to tax'. She will add: 'So, today, I say enough. Labour must remove the energy profits levy. Labour must speed up the process of replacing it with a system that rewards success and incentivises investment. 'Because we shouldn't have this energy profits levy at all. 'We must scrap the ban on new licences. 'We must overturn the ban on supporting oil and gas technology exports. 'And we must champion our own industry. 'We must let this great British, great Scottish industry thrive, grow and create jobs – ensuring our energy security for generations to come, driving growth and making this country richer in the process.' Mrs Badenoch will address her first Scottish party conference as leader on Friday while her counterpart north of the border Russell Findlay will deliver his inaugural address on Saturday. Responding to Mrs Badenoch, Simon Francis of the End Fuel Poverty Coalition said her comments were 'out of touch', adding: 'Even with the windfall tax in place, the energy industry made over £115 billion in profits in 2024 alone. 'Meanwhile, average household energy bills remain hundreds and hundreds of pounds higher than they were before the energy crisis started. 'While the Government is right to be consulting on reform of the windfall tax, maintaining a profits levy could help fund home upgrades and a social tariff which would bring down energy bills for the most vulnerable in society.' SNP MSP Kevin Stewart said: 'The Tories wrecked our economy, presided over soaring household bills and ripped Scotland from the EU against our will. 'And now they're lurching further to the right as they haemorrhage votes to Nigel Farage. 'This weekend will be an important reminder of how Westminster has failed Scotland. Only the SNP is offering hope and a brighter future as an independent nation.' Scottish Labour deputy leader Jackie Baillie said: 'While the Tories and SNP let energy workers down by failing to plan for the future, Scottish Labour is committed to taking action towards reaching net zero, creating jobs and cutting energy bills. 'The Tories are on the side of oil and gas giants rather than working Scots, but Scottish Labour will work with the UK Government and use devolved powers to deliver a just transition for the industry. 'With Kemi Badenoch desperately attempting to rally the few remaining Scottish Tories, it seems like it won't be long until they can fit all of their MSPs in a single taxi.'
