EnergyPathways advances MESH energy storage project to boost UK’s clean energy transition

LONDON: EnergyPathways (AIM: EPP), an energy transition company, has announced significant progress on its MESH energy storage project, aligning with the UK government’s ambitious “Clean Power by 2030” target.

The UK government aims to secure the nation’s power supply through a roadmap focused on rapidly deploying new clean energy sources and developing a flexible system to store Britain’s renewable resources, reducing reliance on unabated gas power. The government is reforming energy policy, regulations, and markets to accelerate this transition.

The MESH project, developed as an integrated energy system, promises substantial contributions to the government’s 2030 goals by offering large-scale flexible capacity and long-duration storage to support the expansion of wind power. Set to be operational by late 2027, MESH is backed by private capital and utilizes the UK’s top-tier offshore supply chain and workforce, garnering recognition from government bodies such as the Department for Energy Security and Net Zero (DESNZ), the North Sea Transition Authority (NSTA), and The Crown Estate.

Key developments in the MESH project include:

– EnergyPathways signed a non-binding memorandum of understanding (MOU) with a clean energy fund for cornerstone equity financing, minimizing shareholder dilution. This funding, combined with the existing Global Green Asset Financing (GGAF) loan facility and other debt financing, supports MESH’s growth plans in gas storage, hydrogen, and decarbonized gas power generation, demonstrating MESH’s ability to attract private capital to the UK energy transition.

– Following consultations with the NSTA, the company requested a new straight-to-development petroleum license for the MESH project, aligning with an accelerated energy transition. The previous P2490 license, an old exploration license, had lapsed.

– The company has initiated discussions with a tier 1 FTSE 100 company regarding an agreement for long-term gas storage capacity, gas sales off-take, and project debt financing for the MESH natural gas storage development.

– EnergyPathways submitted a final concept engineering report for MESH-H2 to DESNZ. MESH-H2 is a large-scale 640MW salt cavern hydrogen storage facility with a total storage capacity of 2.8TWh, integrated with the wider MESH project and linked to offshore regional wind.

– The critical decision on the company’s gas storage license application to the NSTA is expected soon, advancing the MESH gas storage project through development plan approval, construction, installation, and operations involving The Crown Estate and the NSTA.

Ben Clube, CEO of EnergyPathways plc, expressed optimism about the project’s future, emphasizing the potential impact of the MESH project on the UK energy transition and the government’s 2030 clean energy targets. Clube highlighted the company’s ability to attract private capital, the progress on long-term agreements with a Tier 1 FTSE 100 company, and the importance of regulatory adaptations to meet energy transition ambitions.

UK energy policy and regulatory reform continue to play a pivotal role in this transition. Secretary of State for Energy Security and Net Zero, Ed Miliband, stated the urgency of reducing dependence on fossil fuels and emphasized the government’s commitment to clean power by 2030. NSTA Chief Executive Stuart Payne reiterated the importance of the North Sea’s role in integrating carbon capture, hydrogen, wind, and oil and gas resources for a clean energy future.

The DESNZ Clean Power Action Plan sets high ambitions for offshore wind, onshore wind, and solar power, complemented by flexible capacity, long-duration energy storage, and consumer-led flexibility. MESH aims to deliver a commercially competitive solution within the short timeframe available, supporting a just transition and the government’s clean power goals by 2030.

EnergyPathways’ MESH project represents a significant step towards the UK’s clean energy future, leveraging private capital and innovative solutions to accelerate the energy transition.