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UK Research and Innovation (UKRI), through its R&D Missions Accelerator Programme (RDMAP), is offering up to £1.5 million in grant funding to support project development studies for underground hydrogen storage (UHS) demonstrator facilities in the UK. The competition forms part of the wider Ultra Long Duration Energy Storage (ULDES) Challenge, which has up to £28 million available for electrochemical and hydrogen storage activities through to 2030.
The funding aims to help businesses progress early-stage underground hydrogen storage opportunities into commercially credible, investment-ready projects. By supporting detailed engineering, commercial assessments and regulatory planning, the programme seeks to accelerate the deployment of large-scale hydrogen storage infrastructure across the UK.
Competition Objectives
The primary objective is to support the development of underground hydrogen storage demonstrator projects that can progress from early engineering stages towards a Final Investment Decision (FID) and eventual construction.
Successful projects must demonstrate a credible pathway to:
The competition also seeks to generate technical evidence and publicly available learning that can support the wider development and cost-effective deployment of underground hydrogen storage in the UK.
Who Can Apply?
The competition is open to UK registered businesses of any size, including SMEs and large enterprises.
Applicants can submit proposals individually or as part of a collaborative consortium.
Collaboration Requirements
Collaborative projects can include UK registered businesses, academic institutions, charities, not-for-profit organisations, public sector organisations and research and technology organisations (RTOs).
For an eligible collaboration:
Non-funded UK and international partners can also participate.
Subcontracting is permitted, although overseas subcontractors must be justified by demonstrating why suitable UK alternatives cannot be used.
Funding Available
UKRI has allocated up to £1.5 million to support project development studies.
Each project must request between £200,000 and £750,000 in grant funding.
The competition funds feasibility studies, with grant rates depending on the size of the participating organisation.
Grant Funding Rates
• Micro and small businesses: Up to 70% of eligible project costs.
• Medium-sized businesses: Up to 60% of eligible project costs.
• Large businesses: Up to 50% of eligible project costs.
Research organisations undertaking non-economic activities can collectively account for up to 30% of total eligible project costs.
Eligible research organisations may receive up to 100% of their eligible costs, while academic institutions may receive up to 80% of full economic costs.
Project Scope and Requirements
The competition focuses on developing credible underground hydrogen storage demonstrator projects from early-stage engineering opportunities towards investment-ready propositions.
Projects should progress from Front-End Loading (FEL) stages 1 or 2 towards completion of FEL-3, with sufficient engineering, financial and commercial evidence to support future investment decisions.
Proposals must deliver a comprehensive project development study covering six areas.
1. Front-End Engineering Design (FEED)
Develop the engineering definition needed to establish the technical feasibility and design requirements of the proposed underground hydrogen storage facility.
2. Cost and Schedule Definition
Prepare robust project cost estimates, development schedules and delivery milestones to support investment planning.
3. Commercial Viability Assessment
Evaluate the commercial potential of the proposed storage facility, including its business model, investment requirements and long-term economic viability.
4. Hydrogen Supply and Offtake Arrangements
Assess potential hydrogen supply sources, storage demand and offtake arrangements to demonstrate how the facility would operate within the wider hydrogen economy.
5. Planning, Consenting and Regulatory Progression
Identify and progress the planning permissions, environmental requirements, regulatory approvals and other consents necessary for deployment.
6. Project Execution and Procurement Planning
Develop a practical execution strategy covering procurement, construction planning, delivery responsibilities and the steps needed to reach a Final Investment Decision.
Projects must demonstrate how these activities will reduce technical, commercial and delivery risks while supporting commercial-scale deployment by 2035.
Project Duration and Timeline
Projects must last between 6 and 12 months.
Competition opens: 23 October 2026
Competition closes: 13 January 2027
Potential Future Funding Opportunities
This competition represents the first stage of a potentially larger investment in underground hydrogen storage demonstration.
UKRI has earmarked up to £10 million for potential future support towards an underground hydrogen storage demonstrator.
However, future funding remains subject to additional approvals and funding decisions. Receiving an award under the current competition does not guarantee access to subsequent funding.
Successful applicants may also have opportunities to receive non-financial support through the UK Government's proposed Cleantech Innovation Challenges programme, subject to its development and approval.
This could include assistance with commercialisation, partnership development, regulatory engagement and knowledge sharing.
How Inventya Can Help
Developing a competitive application for underground hydrogen storage funding requires a clear technical development plan, credible commercial justification and a strong demonstration of how the project will progress towards investment readiness.
Inventya can support businesses throughout the funding application process, helping them develop proposals that align with UKRI's requirements and demonstrate a credible pathway to commercial deployment.
Our support includes:
• Eligibility and project assessment: Evaluating project suitability against the competition's eligibility, scope and funding requirements.
• Consortium development: Supporting the identification of suitable project partners and defining their roles and contributions.
• Grant application development: Preparing a compelling proposal that clearly communicates the technical approach, project objectives, expected outcomes and commercial potential.
• Financial planning and budgeting: Supporting the development of eligible project budgets, cost justifications and funding strategies.
• Commercialisation and investment readiness: Helping businesses articulate their route to market, investment requirements and plans for scaling underground hydrogen storage infrastructure.
With experience supporting innovation-driven businesses across the energy and sustainability sectors, Inventya can help applicants strengthen their proposals and navigate the funding process.
Contact Inventya to explore your eligibility and discuss how we can support your application for the Underground Hydrogen Storage Demonstrator DEVEX Support competition.
