REG - EnergyPathways PLC - MESH Update

EnergypathwaysAnnouncement

29/05/2025 07:15

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RNS Number : 5774K  EnergyPathways PLC  29 May 2025

     29 May 2025

EnergyPathways plc

 

("EnergyPathways" or the "Company")

 

MESH Update

Progress on MESH Hybrid Compressed Air Energy Storage

 

EnergyPathways (AIM: EPP), an energy transition company, is pleased to advise
that it has progressed in-house concept engineering studies for the addition
of a hybrid compressed air energy storage component (H-CAES) for its MESH
integrated energy storage project.

 

Highlights

 

·      MESH plans to be one of Europe's largest Long Duration Energy
Storage (LDES) facilities when developed

·      Up to 400 MW low-carbon dispatchable power facility

·      The MESH integrated energy storage project when fully developed
will now integrate proven compressed air, hydrogen and natural gas storage
technologies, with H-CAES expected to make a highly valuable contribution

·      Construction of up to 4 offshore salt caverns of 665,000 cubic
metres each

·      Up to 5 days of supply with rapid start up and shut down for
maximum market flexibility

·      Optimal location adjacent to a grid constraint boundary to access
and dispatch excess UK wind power

·      Registered intention to submit licence application with the
Marine Management Organisation ("MMO"),in relation to an offshore compressed
air storage development

·      With the inclusion of H-CAES, MESH is cost competitive with CCS
linked gas-fired power, Battery Energy Storage Systems (BESS), and blue and
green hydrogen to dispatchable power

·      Potential to integrate H-CAES with gas storage and hydrogen
storage facilities

·      Future-proofed design to integrate MESH with hydrogen storage
when Britain's hydrogen economy becomes commercially viable

·      Progressing discussions with National Gas for MESH gas grid
connection

 

The Company and its technical advisers have now progressed in-house concept
engineering studies for the addition of H-CAES component to be part of the
MESH integrated energy storage project. MESH, when fully developed, will now
also integrate proven compressed air, hydrogen and natural gas storage
technologies, providing a potential total storage capacity of around 20 TWh,
equivalent to 7% of UK annual electricity demand. When developed, MESH will
potentially be Europe's largest Long Duration Energy Storage facility
(~400MW), the UK's largest hydrogen storage facility (~2.8TWh), and the UK's
largest gas storage facility (~600 million therms).

 

Energy storage is crucial to the UK's national security and to its Net Zero
ambitions. Energy security remains a key priority for this Government. The
objectives of MESH align with the Government's priorities to reduce emissions,
enhance energy security, protect bill payers, and create economic growth and
jobs.

 

 

Ben Clube, CEO of EnergyPathways said:

 

"We believe that MESH is a crucial project which will support the Government's
Net Zero ambitions and we are pleased to be making progress on the highly
valuable compressed air storage component of the Project.

 

"The Government has identified the need for more energy storage as a clear
priority to reach clean power targets by 2030. The Government's plan requires
an infrastructure spending programme that averages a colossal £40bn+
annually. In our view, much of this investment is at risk of being passed onto
consumers' bills without the right policy mix being put in place.

 

"The backbone of the Government's plan for achieving clean power by 2030 is a
massive expansion of wind power, targeting a capacity that is three times
Britain's total current average demand for electricity. Additionally, it
requires the ageing UK grid infrastructure to be upgraded to accommodate the
variable supply and remote locations of wind farms. Further, the Government
plans to install new decarbonised backup power capacity for when the wind
doesn't blow. Energy storage is essential to ensure efficient use of taxpayer
funds and avoid further escalating consumer bills.

 

"The Government recognises the value that natural gas storage facilities play
in energy security as a source of balancing system flexibility, particularly
when responding to short-run changes in supply and demand, or during cold
winter months.

 

"The Government also considers hydrogen storage infrastructure to be critical
to growing the hydrogen economy and to supporting its Clean Power Mission, and
it is committed to designing a new business model by the end of 2025 to
support investment in, and the development of, hydrogen storage
infrastructure. EnergyPathways has been advised that prospective projects,
such as MESH, will have the opportunity to apply for Hydrogen Storage Business
Model financial support in due course.

 

"In parallel with progressing the pre-FEED aspects of MESH, we continue to
engage with authorities in relation to the award of a Gas Storage licence for
the MESH project. Engagement with the Government remains constructive and we
are actively outlining the multiple benefits of the Project, especially in
relation to energy security and energy affordability, and how they directly
align to the various moving parts of the Government's energy policies.
Ultimately, we believe MESH is in the interests of all of; the Government's
net zero ambitions;  UK consumers, UK taxpayers, UK jobs and the environment.
The greenlight from the Government will allow us to fast-track our ready-to-go
MESH project."

 

 

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/7Plb5e

 

Enquiries

 

 Investor questions on this announcement                                      https://energypathways.uk/announcements
 We encourage all investors to share questions on this announcement via our   (https://energypathways.uk/announcements)
 investor hub
 EnergyPathways                                                               Tel: +44 (0)207 466 5000,
 Ben Clube / Max Williams

                                                                              c/o Burson Buchanan (Financial PR)

                                                                              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

 

Subscribe to our news alert service: energypathways.uk/auth/signup
(http://energypathways.uk/auth/signup)

 

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

 

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
timing and granting of regulatory and other third party consents and
approvals, uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of unexpected
events.

 

Actual results achieved may vary from the information provided herein as a
result of numerous known and unknown risks and uncertainties and other
factors.

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