The energy that results during a chemical reaction is called chemical energy. It is a type of potential energy. Chemical energy is stored within the bonds of the atoms and molecules that make up a substance. Once chemical energy is released from a substance, the substance is transformed into a new substance.ur bodies use chemical energy to perform daily functions. During an exothermic chemical reaction, chemical energy in the form of heat is released. Plants perform a chemical reaction each time they use sunlight to make their own food during photosynthesis.