To lead a collaborative project or to work alone, your organisation must be a UK registered business of any size.

To collaborate with the lead, your organisation must be one of the following UK registered:

• business of any size
• academic institution
• charity
• not for profit
• public sector organisation
• research and technology organisation (RTO)

An eligible organisation can only lead on one application. Any further applications by the same organisation as lead will be made ineligible.

An eligible organisation that is leading an application can be included as a collaborator in a further two applications and if not leading, can collaborate in any number of applications.

Your project must:

• have total eligible grant funding request of between £200,000 and £750,000: this grant can cover up to 70% of costs depending on business size
• last between 6 and 12 months
• start by 1 April 2027
• end by 31 March 2028

Any organisation receiving funding must carry out its project work in the UK, intend to exploit the results in the UK, and spend most of the funding within the UK.

The aim of this competition is to support the development of credible underground hydrogen storage (UHS) demonstrator projects from an early stage (FEL-1 or -2) opportunity. Projects should progress to a defined, commercially credible and materially de-risked (FEL -3 complete) investment ready proposition, capable of progressing towards final investment decision (FID) and into project execution. Successful projects must generate evidence and public learning to support cost effective UHS deployment in the UK for the electricity sector, demonstrating a discharge availability of at least 100 continuous hours.

Projects must target initial megawatt hour (MWh) scale deployment by 2030, and demonstrate a credible pathway to commercial, gigawatt hour (GWh) scale deployment in the UK by 2035.

Your project must:

• involve the proposed deployment of an UHS demonstrator facility capable of injecting, storing and withdrawing hydrogen from a subsurface environment within defined safe operating limits
• be a first of a kind development in the UK, developing a commercially viable demonstrator or prototype facility rather than a business-as-usual commercial project
• be designed and specified for hydrogen service, with a defined pathway to dedicated hydrogen storage; interim hydrogen supply or storage solutions may be considered where the applicant demonstrates it is needed to bridge hydrogen supply availability, such as challenges to near-term hydrogen pipeline connection
• propose a demonstrator facility targeting at least 10 to 100 MWh of hydrogen working gas capacity, with a credible pathway to GWh scale commercial deployment by 2035.
• be linked to one or more credible hydrogen offtake pathways, preferably including power generation applications, industrial offtake, or hydrogen transmission, distribution or storage services
• identify a specific site, and demonstrate a credible route to securing the land access, consents and permits required for construction and operation
• demonstrate that the proposed lead or team has the capabilities required to progress from the funded studies through to FID, construction and operation

If you are unable to meet any of the criteria outlined above, please provide details of what you consider your project can credibly deliver alongside any relevant justification or mitigating factors.

A technology neutral approach has been adopted within defined boundaries, recognising that there are promising UHS technologies at different levels of technical and commercial maturity.

Eligible UHS technologies include:

• engineered lined shaft
• subsurface silo or vertical pipe array
• engineered lined rock cavern
• depleted oil field
• depleted gas field
• novel salt cavern

Note: Novel salt cavern concepts will only be considered where applicants demonstrate that the proposed project involves material technical or system innovation. The project must also address defined evidence gaps and generate transferable learning additional to conventional large scale salt cavern development.

For UHS technologies not explicitly listed as eligible above, applicants may still be considered where they can demonstrate a clear case for support. This should include the potential to generate valuable project outcomes, innovation, risk reduction, public learning, or evidence that key market barriers are unlikely to be addressed through existing or anticipated policy mechanisms alone. If you believe your technology falls into this category, contact us before applying.

There are extensive additional criteria for this competition: please read the Scope section in full before applying. Essential requirements are summarised below.

Your project must show a clear route to construction and operation in the UK, with a specific site identified as part of the project development study.

You must demonstrate a credible route to deployment, including how you will secure any outstanding permits, consents, infrastructure and site arrangements within the project timescales.

Any site preparation and development risks must be clearly outlined. Project sponsors must prioritise sites that minimise such risks.

Your project development study must contain, as a minimum:

• front end engineering design (FEED) level engineering definition
• robust cost and schedule definition
• commercial viability assessment
• hydrogen supply and offtake arrangements
• planning, consenting and regulatory progression
• project execution and procurement planning

Your project development study must advance your project from early-stage (FEL-1 or -2) design definition towards an FEL-3 complete engineering basis. It must be supported by evidence that the proposed site, facility and associated surface and subsurface infrastructure can be delivered and operated safely.

This must include:

• a FEED level (FEL-3) basis of design with associated engineering deliverables, developed in line with the MDR agreed on funding award
• a mass balance and operating model demonstrating alignment between hydrogen supply, storage and demand requirements
• site specific subsurface characterisation demonstrating containment integrity, storage performance, and operational suitability
• a major equipment list (MEL) and technology selection report, supported by equipment sizing and datasheets
• a technical risk register documenting the identification, mitigation and residual status of key technical risks
• FEED level safety studies, including hazard identification (HAZID), environmental impact identification (ENVID), quantitative risk assessment (QRA) and design assurance activities

Your project development study must produce cost and schedule estimates sufficiently robust to support investment decisions. This includes an evidenced understanding of development expenditure (DEVEX), capital expenditure (CAPEX), operating expenditure (OPEX), key cost drivers, contingencies, critical path activities and delivery risks.

Your project development study must establish a credible business model and route to market. This must comprise robust project economics, an investable financing strategy, and evidence that your project has a viable pathway beyond the DEVEX funding period.

Your project development study must establish credible hydrogen supply and offtake arrangements, supported by evidence of prospective commercial agreements, defined operating requirements, and a viable pathway to long term operation.

Your project development study must materially progress planning, consenting and regulatory readiness, covering land access, environmental assessment, planning strategy, safety requirements and early engagement with relevant authorities.

Your project development study must demonstrate a credible execution strategy. This must be supported by a capable project team, clearly defined governance arrangements, supply chain engagement and plans for managing long lead equipment and key interfaces.

We are not funding projects that are:

• focused on laboratory scale or early stage discovery research
• limited to the development of individual materials, components, equipment or subsystems, without integration into a defined, site specific UHS project
• focused solely on technology testing or innovation, without a credible site, demonstrator proposition and pathway to FEL-3 completion
• focused primarily on hydrogen production, transportation, transmission, distribution or end use, rather than underground hydrogen storage
• focused on above ground hydrogen storage, linepack or transportable storage as the principal storage solution
• seeking funding for routine or generic project development activity that does not materially reduce the risks or uncertainties constraining progression towards FID
• primarily intended to support business as usual activity that would proceed at the same scale and pace without public funding
• focused on the production, conversion, storage or use of hydrogen derivatives or carriers including ammonia, methanol, synthetic methane or liquid organic hydrogen carriers, rather than the underground storage of gaseous hydrogen

Innovate UK Business Connect will be hosting supporting events for this competition as follows:

Competition briefing webinar: 28 October, 11:00-12:30 (covering both strands)
UHS Project Development Studies surgery: 5 November, 11:00-12:00

You are also welcome to attend the UHS Collaborative R&D surgery: 3 November, 11:00-12:30, which relates to the separate linked competition: testing and validating underground hydrogen storage components.

Register for briefing and/or surgeries here.

Innovate UK Business Connect (IUKBC) will deliver and manage an online matchmaking tool which is now available for signup and will remain open throughout the duration of the competition. The platform offers a great opportunity to collaborate with others in your field or industry. Participants can meet potential partners, collaborators, or even competitors and share ideas and insights. You can create an “organisation page” so that others in the community can see what you have to offer and can get in touch, share information about your project and the type of support you are looking for, reach out to people directly to see if you’d be a good match to work together, and book a 20-minute session with a potential collaborator.