A groundbreaking project to develop a new type of underground hydrogen storage in Scotland has received a significant funding boost of £500,000. National Gas, an independent gas supplier in the UK, was granted the funds by energy regulator Ofgem to collaborate with Edinburgh-based energy storage specialists Gravitricity on the innovative project, named H2FlexiStore. This system is designed to store up to 100 tonnes of green hydrogen in specially constructed underground shafts and can be situated in various locations, such as within the National Gas network or adjacent to energy-intensive industrial sites. The consortium, which also includes Edinburgh University and Southern Gas Networks, aims to finalize the design and modeling of the system in the next six months, paving the way for a potential demonstration phase in 2026. The funding from Ofgem comes after a successful feasibility study conducted by National Gas in 2024, which recognized the H2FlexiStore as the preferred technology for versatile hydrogen storage. Martin Wright, co-founder of Gravitricity, emphasized the importance of advancing hydrogen storage technologies for grid-scale energy storage on a national and international level. This support from Ofgem will enable the consortium to prepare technically and commercially for the upcoming demonstration project and subsequent commercial ventures. The technology holds particular significance for Scotland, where traditional geological storage solutions are lacking. Kevin Shillinglaw, an innovation analyst at National Gas, highlighted the project's significance in ensuring readiness for a hydrogen-powered future. By integrating operational hydrogen storage directly into the transmission system, operational flexibility can be enhanced, costs reduced for consumers, and substantial support provided for the ongoing decarbonization efforts in heat and power sectors.