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According to the BBC article it carried a 2kg payload. That's enough for a decent observation and communications platform and this is only a prototype - they're talking about a much bigger version that could stay aloft for months.

Sion Power make the Lithium Sulfur batteries and they claim an energy density that's almost twice that of Lithium Ion. If that's true the power shouldn't be too much of a problem once the UAV's reached cruising altitude. It would be good to know some more about those batteries...

The advanced battery people are already building better batteries for the military:

http://www.sionpower.com/applications/military.htm l

Bigger version of this:
http://news.bbc.co.uk/1/hi/technology/6272752.stm

Or

http://www.ogormans.co.uk/freeplay_weza.htm

But then, it looks like people are already working on military applications of lithium powered batteries:

http://www.sionpower.com/applications/military.htm l

Any electricity which can be used to generate hydrogen can now be stored in batteries with a higher energy density than compressed hydrogen gas and yes, with negligible degradation. Go check out the state of the art in battery technology.

e.g.
http://www.toshiba.co.jp/about/press/2005_03/pr290 1.htm
http://www.sionpower.com/

You'll see them in mobile phones and laptops first. They'll make it into electric vehicles in a few years.

Generating electricity to produce hydrogen to produce electricity is, well, stupid.

Sion tech description

Ultralife batteries specs sheet

its [sic] sulphur [sic]

Scroll all the way to the bottom if you need help finding the address of their UK office. Also, work on your grammar and spelling; it's appa(u)lling.

More battery info here