REG - EnergyPathways PLC - MESH Development Update

EnergypathwaysAnnouncement

10/02/2025 07:00

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RNS Number : 4953W  EnergyPathways PLC  10 February 2025

10 February 2025

EnergyPathways plc

 

("EnergyPathways" or the "Company")

 

MESH Development Design Selected Following Pre-FEED Activities

 

EnergyPathways (AIM: EPP) is pleased to announce an update on its pre-Front
End Engineering and Design ("pre-FEED") activities for the Marram Energy
Storage Hub ("MESH" or the "Project") and the selected technical design for
the initial phase of the MESH development. The technical engineering and
design studies have been undertaken by EnergyPathways in conjunction with its
strategic partners Wood plc, Mermaid Subsea Services (UK) Limited and PDi Ltd.

 

The MESH development has been designed as an integrated energy system
solution. MESH will connect gas production, gas storage, hydrogen storage,
offshore wind and decarbonised gas power generation to provide the UK with a
long term secure and dependable supply of clean energy. MESH has been designed
as a decarbonised facility with production operations fully electrified and
powered by renewable energy. The MESH development design will repurpose
existing late life gas infrastructure as a future energy hub that can help
harness the significant energy resources of the North West of England.

 

The MESH project development is initially centred on the development of the
Marram Gas Field as a gas storage and production facility. The Final
Investment Decision ("FID") for this is planned for the end of 2025 with first
production operations starting in late 2027.

 

The initial MESH project development involves:

 

·      a new unmanned offshore platform ("Marram A") with four well
slots, powered by renewables (wind, solar and batteries);

·      two initial production wells (to be drilled Q2 2027) in Phase 1,
followed by two more for gas storage (Q2 2029) in Phase 2;

·      a new 9km pipeline connecting the new "Marram A" platform to an
existing gas export trunkline following cessation of production from a late
life gas field;

·      upgrading and repurposing of existing late life onshore gas
facilities with latest modern, low emission technologies to decarbonise MESH
gas production and gas storage withdrawal and injection operations;

·      re-purposing of industrial land in Barrow-in-Furness to minimise
the Project's environmental footprint and enable a timely start up; and

·      a short distance onshore tie-in to the National Gas UK
Transmission System

 

Phases 1 and 2 will deliver a facility that will store an estimated 500-600
million therms of gas with withdrawal and injection rates of 1.7-2.0 million
therms of gas per day from the combined 4 well storage facility.

 

This initial MESH development establishes a central energy hub for future
integration with other regional energy projects, including additional gas
storage, gas production, hydrogen storage, offshore wind power and
low-emission power generation. These future plans for a wider integrated
energy system beyond the initial MESH gas storage and production facility are
being progressed in regard to:

 

·      Hydrogen Storage (MESH-H2): along with the license application
submitted for Marram gas storage, the licence area covers salt cavern hydrogen
storage potential. Concept engineering has been completed and submitted to the
relevant authorities for a hydrogen storage project (DESNZ, The Crown Estate,
NSTA);

·      Gas Storage: storage licence application requests have been
submitted to the NSTA for the discovered undeveloped Knox and Lowry gas fields
that are suitable for gas storage;

·      Low Carbon Energy Production: ongoing engagement with various
stakeholders to connect the region's wind power and to access the East Irish
Sea's stranded gas resources with the MESH decarbonised energy hub; and

·      Decarbonised Power Generation (MESH-POWER): concept engineering
has been completed for offshore gas power generation designed to complement
and support the region's wind power.

 

In addition, EnergyPathways has commissioned studies into static and dynamic
storage reservoir and integrated production modelling, in parallel with
desktop studies in preparation for the necessary environmental and seabed
surveys to be undertaken later this year.

 

Ben Clube, CEO of EnergyPathways plc said:

 

"We are pleased to provide a summary of what has been a very active period for
EnergyPathways as we progress MESH through the pre-FEED stage and we remain on
track to achieve FID at the end of 2025. With the development design for the
MESH integrated energy system now framed, we can move forward to deliver a
major energy project to support the UK's energy transition ambitions.

 

"As a large-scale energy storage facility, MESH can play a critical strategic
role in providing the UK with a secure and reliable supply of low emission
energy for decades to come. It can play an important role in helping moderate
the impact of international gas prices and energy import costs on household
bills.

 

"The MESH energy hub capitalises on specific regional dynamics and integrates
multiple energy assets to help the UK harness its considerable energy
resources of the North-West of England including excess and curtailed wind
power and regional stranded low emission gas resources. By repurposing soon to
be decommissioned gas infrastructure, MESH will bring a new lease of life to
important UK energy assets being abandoned by the exiting oil and gas
industry.

 

"In parallel with the extensive technical work streams outlined above, we
continue to engage constructively on MESH project financing. What is clear
from our engagement with industry and financing stakeholders to date is that
there is a clear recognition of the commercial proposition tabled by MESH. We
believe that the potential of MESH to mobilise private and public capital in
order to provide clean energy to the UK's energy transition warrants the
support of a government weighed down by taxpayer subsidised projects."

 

 

About MESH

 

MESH is a new large scale energy storage facility that is expected to provide
a secure and dependable supply of natural gas and green hydrogen for the UK
market for over 20 years. MESH is expected to be the UK's largest natural gas
and hydrogen energy storage facility and will be able to store in excess of
500 million therms of energy. Production operations are expected to start from
the end of 2027 to ensure a reliable and secure supply of energy for the UK.
 MESH has been designed as a fully decarbonised and electrified zero emission
facility that is to be powered by the renewable wind farms of the UK Irish Sea
region. EnergyPathways aims to play a leading role in supporting the UK's
energy transition and development of a hydrogen economy.

 

 

 

Investor Engagement with EnergyPathways

Engage with us by asking questions, watching video summaries and seeing what
other shareholders have to say. Navigate to our Interactive Investor website
here: https://energypathways.uk/link/0PQx2r

 

Enquiries:

 

 EnergyPathways                                        Tel: +44 (0)207 466 5000, c/o Buchanan (Financial PR)

Ben Clube / Ben Hodges

                                                     Email : info@energypathways.uk

 Cairn Financial Advisers LLP (Nominated Adviser)      Tel: +44 (0)20 7213 0880

 Jo Turner / Louise O'Driscoll / Sandy Jamieson

 SP Angel Corporate Finance LLP (Broker)               Tel: +44 (0)20 3470 0470

 Richard Hail / Adam Cowl

 Global Investment Strategy UK Limited (Joint Broker)  Tel: +44 (0)20 7048 9000
 Callum Hill / James Sheehan

 

For further information on EnergyPathways visit www.energypathways.uk
(http://www.energypathways.uk/)  and @energy_pathways on X (formerly
Twitter).

 

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