£30 Million Government Investment to Enhance Renewable Energy Capture and Storage

Innovative companies across regions like Scotland and Nottingham stand to gain from a share of £30 million, positioning themselves at the forefront of advancing and testing groundbreaking technologies that will modernize the energy sector and enable renewable energy storage for future use.

Capturing and storing energy for timely use is vital for powering more of Britain’s energy landscape and bolstering national energy security. The recently announced funding will assist businesses in testing and preparing their technologies for market deployment, fostering private investments and generating new jobs throughout the UK.

Due to the intermittent nature of renewable energy, there are instances on windy or sunny days when the generation surpasses immediate demand. Energy storage solutions will absorb this surplus energy for later usage, enhancing the efficiency of renewable resources while improving energy security and reducing costs for consumers.

With advancements in technologies like electricity storage and smart EV charging, the UK could potentially save up to £10 billion annually by 2050 by minimizing the required energy and infrastructure for a secure, home-grown energy system. Promoting the adoption of energy storage technologies will allow the National Grid to stabilize the grid by utilizing storage units instead of shutting down specific power generation sources, ultimately benefiting taxpayers.

Minister for Energy Security and Net Zero Graham Stuart commented:

Enhancing energy storage capabilities is crucial for establishing a resilient and secure energy system while ensuring the efficient use of renewable resources. The UK is fortunate to have a plethora of innovative companies making significant contributions to this field.

Today, we are supporting three UK enterprises to bring their projects to fruition, contributing to the nation’s energy security.

The selected projects will proceed to fully deploy and demonstrate their technologies; they include:

• Synchrostor, based in Edinburgh, Scotland, is set to receive £9.4 million to construct a 1MW Pumped Thermal Energy Storage (PTES) demonstration plant, capable of charging and discharging over a 10-hour period, which exceeds current battery capabilities.
• Invinity Energy (UK) Limited, also from Scotland, will receive £11 million to develop and produce their 7MW, 30MWh 4-hour Vanadium Flow Battery (VFB), the largest in the UK. The battery will be manufactured at their facility in West Lothian, with the plant’s location confirmed later;
• Cheesecake Energy Ltd, located in Nottingham, will get £9.4 million to evaluate their FlexiTanker technology that utilizes a combination of thermal and compressed air energy storage, employing a reversible air compression/expansion system for charging and discharging. They plan to install pilot units at two sites within a microgrid project in Colchester.

This funding announcement builds on the £32.8 million previously allocated to five UK energy storage projects in November 2022 to develop unique prototypes of their technologies. To date, a total of £69 million has been awarded through this initiative, promoting cutting-edge technologies like energy storage.

This latest funding comes in conjunction with the launch of the government’s Powering Up Britain plan, detailing how the UK aims to enhance its energy security and independence, create green jobs, and lead the transition to net zero.

Notes to editors

The £69 million Longer Duration Energy Storage Demonstration competition is backed by the Department for Business, Energy and Industrial Strategy’s £1 billion Net Zero Innovation Portfolio, focused on accelerating the commercialization of innovative clean energy technologies throughout the 2020s and 2030s.

For additional details, see the comprehensive list of funded projects under Phase 2.

This competition was carried out in two phases and across two streams.

The competition streams were designed to assist technologies at different development stages, with Stream 1 focusing on actual technology demonstrations and Stream 2 supporting prototype demonstrations.

Funding for the Stream 1 Phase 1 (feasibility study phase) came through Capital Grants, with projects needing to secure additional private investment. Phase 2 funding involves constructing and commissioning demonstrators in operational environments.

Stream 2 Phase 1 funding (feasibility phase) was provided in Small Business Research Initiative (SBRI) contracts, requiring risk-sharing. Phase 2 funding is directed towards building and commissioning prototypes for technology demonstrations.

Constraint payments are the most effective means for the National Grid to maintain the power supply and are only utilized when there is surplus energy.

Grid constraints are a natural aspect of running an efficient electricity system, though necessary improvements to grid infrastructure are being implemented to ensure that UK households can be powered with clean, renewable energy.