Ultra Long Duration Energy Storage Project Development Studies

Overview

Innovate UK, part of UK Research and Innovation (UKRI), will invest up to £3 million from the UKRI R&D Missions Accelerator Programme in project development studies for electrochemical ultra long duration energy storage technologies.

Projects will develop the technical, commercial and delivery evidence needed to progress towards large-scale UK demonstration. Studies must cover areas including technology assessment, engineering design, cost and scale-up planning, market assessment, deployment and UK manufacturing and supply chains.

This is Phase 1 of a planned two-phase programme. A future Phase 2 is expected to support large-scale demonstrator projects, although participation in Phase 1 is not required to apply to Phase 2.

Scope

The aim of this competition is to support the development, scale-up and UK manufacture of electrochemical ultra long duration energy storage (ULDES) technologies.

These technologies must be capable of delivering cost-effective electrical power to the UK electricity grid with a discharge availability of at least 100 continuous hours. They must also achieve a working life of at least 25 years.

Projects must:

• involve the proposed deployment of electrochemical ULDES technologies
• fulfil the requirements under one of the two streams outlined below
• support a planned UK demonstration project by 2030, meeting the scale and timetable requirements of the selected stream, as part of a pathway to scalable deployment in the UK energy system
• demonstrate that the proposed lead or team has the capabilities required to progress from project development studies through to demonstration and deployment

The competition is the first phase of a two-phase process:

• Phase 1: project development studies, funded through this competition
• Phase 2: technology demonstration, planned through a future competition in mid-2027

Participation in Phase 1 is not required to apply for the planned Phase 2 competition.

A technology-neutral approach has been adopted within defined boundaries. Support is available across two streams reflecting different levels of technical and commercial maturity.

Stream 1: near commercial scale-up

Stream 1 will develop and demonstrate near-commercial electrochemical ULDES systems that could compete with installed lithium iron phosphate (LFP) technology on cost and performance.

Projects must:

• feature an electrochemical ULDES technology able to store energy for several days and provide intraday and interday energy arbitrage, uninterruptible power supply and backup power for long outages, including commercial and industrial applications and critical infrastructure
• plan to deliver a grid-connected demonstration project of at least 100 MWh by 2030
• envisage reaching a total ownership cost of less than US$40/kWh by 2030 or provide evidence that the technology could compete with installed LFP battery technology
• provide a commercialisation plan showing how the technology will scale in the UK energy system
• demonstrate ambition for developing UK manufacturing capacity and building domestic supply chains

Stream 2: system innovation and low cost pathways

Stream 2 will develop early-stage electrochemical ULDES technologies with the potential to compete on cost with unabated combined cycle gas turbines (CCGTs), which currently provide the UK’s strategic reserve to 2050.

Projects must:

• feature an electrochemical ULDES technology that can provide monthly and seasonal energy arbitrage equivalent to a UK strategic reserve, demonstrating the potential for minimal degradation or self-discharge over long periods
• plan to deliver a grid-connected pilot demonstration project of at least 100 kWh by 2030
• envisage reaching a total ownership cost of less than US$15/kWh by the early 2030s or provide evidence that the technology will compete with CCGT generation
• provide a commercialisation plan showing how the technology will scale in the UK energy system
• demonstrate ambition for developing UK manufacturing capacity and building domestic supply chains

Key themes and topics

This Phase 1 competition is providing funding for project development studies, formally classified as feasibility studies, to strengthen demonstration project proposals for the planned future Phase 2 competition.

A first draft of the project development study must be completed by 31 May 2027.

Projects should demonstrate:

• strong site and technology readiness
• clear consenting and permitting routes
• grid integration
• deliverability potential
• promising commercial prospects
• commitment to building UK manufacturing and supply chain capabilities

Projects must show a clear route to construction and operation in the UK, with a specific site identified as part of the project development study.

The selected site may be:

• a demonstration or test facility covered by an existing arrangement
• a facility already owned by the project team
• a greenfield development

Any site preparation and development risks must be clearly identified.

Project development studies must include, as a minimum:

• technology assessment
• engineering design
• cost and scale-up roadmap
• market assessment
• deployment plan
• manufacturing and supply chain plan

Technology assessment must cover:

• rate of self-discharge
• round-trip efficiency
• expected operational lifetime and degradation profile
• energy density, including gravimetric and volumetric density
• power density
• charge characteristics and time needed to charge
• safety, reliability and operational considerations
• sustainability and emissions assessment

Engineering design must include a Front-End Engineering Design (FEED) study covering:

• site selection
• plant layout and infrastructure
• project execution plan
• safety, environmental and regulatory assessment

The cost and scale-up roadmap must include:

• how the proposed technology can scale
• a techno-economic assessment of how it can meet the cost target
• fixed CAPEX
• fixed OPEX
• variable OPEX
• an assessment of potential rollout after commercialisation

The market assessment must include:

• evidence that the technology can provide critical services to the UK electricity system during periods of severe system stress
• evidence that the technology can store enough energy to support system stability during such events
• evidence that strategic reserve capacity can be maintained
• an assessment of operation at very low cycling frequencies
• evidence of whether reserve capacity can be preserved while providing revenue and additional services
• an assessment of UK market potential and replicability
• an assessment of wider market potential where the technology is manufactured in the UK
• potential benefits outside the power sector
• evidence of engagement with prospective investors
• evidence of engagement with prospective customers

The deployment plan must demonstrate the ability to complete a Phase 2 demonstration project by 2030 and include:

• evidence of investment of at least the minimum private finance needed to progress with a demonstration project
• heads of terms or final draft commercial contracts for key work packages
• evidence of planning permission or a certificate of lawfulness
• draft end-user commercial contracts
• a suitable grid connection or formal grid connection offer
• an offtaker agreement
• evidence of a customer that will provide a revenue stream

The manufacturing and supply chain plan must include:

• evidence of established relationships with UK industry
• evidence of established relationships with academic or research institutions
• details of how these relationships will support manufacturing capability, research and innovation and site-specific technology design
• a strategy for developing UK workforce skills and capabilities
• details of training, knowledge transfer and apprenticeship opportunities
• an assessment of opportunities to establish a UK-based supply chain
• identification of key components, materials and services that can be sourced in the UK
• details of how the approach will support supply chain resilience and UK economic growth
• an assessment of anticipated UK economic benefits, including job creation, inward investment, export potential and strategically important industrial capabilities

Projects will not be funded where they are:

• focused on laboratory-scale or early-stage discovery research
• limited to component, material or subsystem development, or manufacturing process optimisation
• focused on incremental improvements to existing short-duration battery energy storage technologies
• based on non-electrochemical energy storage approaches, including hydrogen, thermal, pumped hydro, compressed air or other gaseous or mechanical storage systems
• dependent on export performance
• dependent on domestic inputs usage

Project duration

Projects must:

• Last 3 to 9 months
• Must start on 1 January 2027
• End by 30 September 2027

Award value

Grant funding request between £350,000 and £700,000.

Funding rates

For feasibility studies, which evaluate a project’s potential by uncovering key factors and informing confident, well-founded decisions about moving forward, organisations can get funding for eligible project costs of:

• up to 70% if they are a micro or small organisation
• up to 60% if they are a medium-sized organisation
• up to 50% if they are a large organisation

Research organisations undertaking non-economic activity can share up to 30% of the total eligible project costs.

Eligibility criteria

• Projects must be collaborative and led by a UK registered business of any size
• Collaborators can be a UK registered business of any size; an academic institution; a charity; a not for profit; a public sector organisation; or a research and technology organisation (RTO)
• Subcontractors must be preferably UK-based with fully justified and appropriate costs. Overseas subcontractors can be used where applicants provide a clear justification for why a UK subcontractor cannot be used
• All funded project work must be carried out within the UK
• Projects must intend to exploit the results from or in the UK
• Subsidy control and State aid rules apply through the Research, Development and Innovation Streamlined Subsidy Scheme under the Subsidy Control Act 2022