Issued by: Department for Business, Innovation, Science and Trade, Department for Energy Security and Net Zero, and UK Research and Innovation

Challenge aims to strengthen UK energy security, create jobs in new industries, and reduce energy bills in the long-term

• The Ultra-Long Duration Energy Storage Challenge will offer £28 million to create tech which can store clean energy for over 100 hours

• Following another record-breaking heatwave, this launch boosts government’s clean energy ambitions to combat climate change

The public will be better protected from potential hikes on their energy bills, as a new initiative looks to cut the UK’s reliance on more expensive sources of power.

Launched today (Thursday 20th August), the Ultra-Long Duration Energy Storage (Ultra-LDES) Challenge will offer grants which support the development of new tech focused on energy storage, including advanced batteries and underground hydrogen storage.

Backed by £28 million from government through UK Research and Innovation (UKRI), UK innovators can now bid for funding to develop projects capable of supplying clean electricity for 100 hours or more – enough to power our homes and businesses for at least four days.

Currently, wind and solar are the cheapest ways to generate electricity in the UK. A lack of wind or sunlight, however, means they aren’t always available, with the grid then relying on a range of options to deliver the power we need, including gas-fired generation.

Reducing our reliance on natural gas will also bolster our energy security as a nation. While the gas system will still play an important role for decades to come, improved energy storage will be a vital part of the transition to clean, homegrown energy, which will shield us from the impacts of international supply chain issues. Laying the foundations for the move to clean energy is also a vital part of addressing the climate crisis, which is already being felt across the UK and around the world.

This Challenge will see some of the UK’s brightest minds coming forward to develop the next generation of energy storage tech, meaning we will be able to store clean energy when not needed by the grid, and release it when it is. This will reduce reliance on economically volatile energy sources like gas, helping to protect consumers from price spikes and support lower energy bills in the long-term.

The Challenge will have two main areas of focus. The first will be on the development of new battery technologies capable of providing energy for over 100 hours. These electrochemical technologies are yet to be commercialised at scale, giving the UK an opportunity to secure an early foothold in the market which will deliver new opportunities for businesses and unlock new jobs.

The second will support the development and testing of systems which store hydrogen underground and release it when needed. It holds the potential to reduce total energy system costs by between £14 billion and £50 billion between 2035 and 2050.

Science Minister Chris McDonald said:

"When we unlock the potential of science and innovation, it can improve all of our lives. That is what this challenge is all about; using the world class scientific expertise that we have in the UK to benefit people in every postcode.

"Clean sources of power are vital to meeting our energy needs as a nation. If we can meet the challenge of storing energy from renewables, we will improve our energy security, bring down energy bills in the long-term, and leave all of us better off."

Energy Minister Michael Shanks said:

"Homegrown clean energy is our route to more affordable bills and energy security and storing it for when we need it most is critical.

"By backing new cutting-edge battery technology and hydrogen storage with this £28 million grant, we will store more clean power, reduce reliance on expensive gas generation and deliver a more secure energy system."

Jenny Hill, UKRI’s Clean Energy Challenge Director said:

"Ensuring the UK has the technologies capable of storing energy efficiently and effectively is a vital part of the equation in the move to a clean and more secure energy system. This Challenge will help propel the UK to the forefront of the global energy storage market, creating skilled jobs and attracting private investment."

Clare Jackson, CEO of Hydrogen UK, said:

"Ultra-long duration energy storage is critical for ensuring the UK moves to a more secure, low-carbon energy system with lower costs for consumers and businesses. Hydrogen has a fundamental role to play in that future energy mix, providing a way to store renewable energy over long periods and use it when the system needs it most. Supporting the development of hydrogen storage alongside flexible power generation will be key to unlocking these benefits across the wider energy system.

"The Ultra-LDES Challenge is an important step towards developing the technologies and infrastructure the UK will need at scale, and we look forward to supporting the innovative hydrogen technologies that emerge."

As part of the Ultra-LDES Challenge, UKRI has also launched a competition offering up to £3 million to fund studies into electrochemical ultra-long duration energy storage technologies. That could bring new battery technologies capable of delivering cost-effective electricity to the UK grid for 100 hours or more to market.

This launch completes the roll out of the £102m Clean Energy challenges, which include the Ultra-LDES Challenge and the £74 million Consumer-led Flexibility Challenge. They will help fund new technologies that help shift electricity use when it’s cheapest, so the system runs more efficiently and bills come down. This is part of the existing R&D Missions Accelerator Programme (R&D MAP) which is investing at least £500m by 2030 into the research and development to tackle the major problems our society and economy face.

The launch also comes as Ofgem consults on plans to support 16 long duration electricity storage projects, unlocking investment in the first new pumped storage hydropower projects in more than 40 years and helping build a more secure, homegrown energy system.

Note to editors

• The Clean Energy Superpower Mission is delivered by UKRI in partnership with DESNZ and other government departments. Funding will be allocated through research councils’ funding systems and Innovate UK.

• The Consumer-led Flexibility Challenge was previously announced on 7 August 2025 with initial funding of £4m as part of R&D Missions Accelerator Programme. Today’s announcement sets out the full suite of the Clean Energy Challenges, which total an investment of £102m from now up to 2030, including £74 million for the Consumer-led Flexibility Challenge.

• Further details on the £3 million electrochemical technology focused Ultra Long Duration Energy Storage Project Development Studies competition, including how to apply, will be available here: Competition overview - Ultra Long Duration Energy Storage Project Development Studies - Innovation Funding Service [https://tinyurl.com/w8r8s6ws]

• The funding follows a UK Energy Research Centre report [https://tinyurl.com/jttjuu9x], commissioned by UKRI, that sought to answer key questions on which long duration electricity storage (LDES) and low carbon dispatchable power (LCDP) technologies can be delivered by 2030/2035 in the UK.

• For more information on the R&D Missions Accelerator Programme, visit: Research and Development Missions Accelerator Programme – UKRI [https://tinyurl.com/yc3fwmz7]

• The Ultra-LDES Challenge is part of the R&D Missions Accelerator Programme (R&D MAP) which is investing at least £500m by 2030 into the research and development of cutting-edge science, technology and service solutions to tackle the major problems our society and economy face. Alongside government funding, R&D MAP projects are expected to work with academia, industry and third sector to leverage a further £1.5 billion of private investment by 2030.

• So far, 11 R&D MAP Challenges have been launched with a range of goals to benefit society, including to reduce violence and improve public safety, improve dementia diagnosis so patients can get treatment earlier, and to help children with special educational needs get help sooner through smart data tools. Further challenges will be launched this year.

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