National Gas has secured £500,000 from Ofgem to develop an innovative underground hydrogen storage system known as H2FlexiStore in collaboration with Gravitricity and other partners. The project aims to utilize purpose-built underground lined shafts to store up to 100 tonnes of green hydrogen, offering locationally flexible storage solutions that can improve the operational efficiency and resilience of the hydrogen gas network. The funding from Ofgem's Strategic Innovation Fund will support the design and modeling of the system over the next six months, with the potential for a demonstration phase in 2026. The successful completion of the project phases could lead to further funding for a technical demonstration project, validating the benefits of underground storage for the hydrogen industry. Gravitricity's technology, designed to store pressurized hydrogen at 200 bar per shaft, fills a crucial niche in the UK's green hydrogen plan by providing secure storage close to demand. The project not only benefits the UK's transition to hydrogen but also has the potential for international deployment, supporting Scotland's ambitions for green hydrogen export. The innovative storage solution enhances energy security and resilience, contributing to the decarbonization of heat and power in the UK.