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RNS Number : 3355V  EnergyPathways PLC  14 August 2025

14 August 2025

EnergyPathways plc

("EnergyPathways" or the "Company")

 

Resubmission of Gas Storage Licence

2008 Planning Act application for MESH development

 

EnergyPathways (AIM: EPP), an integrated energy transition company, announces
that it has received correspondence from the The North Sea Transition
Authority ("NSTA") in respect of its Gas Storage Licence application and it
has requested a government direction under section 35(1) of the Planning Act
2008 ("s.35") for certain elements of the MESH project to be treated as
development for which development consent is required under that Act.

 

Gas Storage Licence

The NSTA has informed the Company that it considers it not appropriate to
award a Gas Storage Licence based on EnergyPathways' application submitted on
16 August 2024 due to, amongst other things, changed circumstances. This
affects only the natural gas storage and hydrogen storage elements of the MESH
project. EnergyPathways is reviewing a number of options for taking these
forward, which includes amending and resubmitting its Gas Storage Licence
application to the NSTA.

 

S35 Planning Application

The direction requested by EnergyPathways would incorporate the major elements
of the MESH project critical to the integrated nature of the project
including: the MESH compressed air Long Duration Energy Storage (LDES) and
flexible low-carbon power generation facilities, onshore gas and hydrogen
conditioning facilities, the MESH clean hydrogen production facilities, the
MESH clean ammonia and synthetic graphite production facilities.

 

The request for a s.35 direction is a process in which an infrastructure
developer seeks approval from the Secretary of State for its project to be
treated as a project requiring consent through a Development Consent Order
(DCO) process under the Planning Act 2008. A s.35 direction enables the
streamlining of the planning process for large-scale infrastructure projects
such as MESH, by consolidating various permissions and consents into a single
DCO.

 

Different parts of the project may require other consents and authorisations,
but a number of these can be covered by the DCO process. For example, the
Marine Management Organisation has advised the Company that, amongst other
things, a marine licence under the Marine and Coastal Access Act 2009 would be
required for the compressed air storage LDES aspect of the MESH development:
EnergyPathways notes that a marine licence can be incorporated within the DCO
process, under which it can be granted on a "deemed" basis.

 

Requesting a s.35 direction is a key step in EnergyPathways' process to obtain
appropriate consents and recognition from the UK Government of the potential
of its integrated MESH energy storage and decarbonisation project to be a
project of national significance. If a s.35 direction is granted, those
elements of the MESH project included in the request will be assessed under
the 2008 Planning Act regime for suitability as a development requiring
development consent.

 

EnergyPathways has consulted with its MESH project development strategic
partners Siemens Energy, Hazer Group Ltd, Costain plc and Wood plc in making
this request.

 

Ben Clube EnergyPathways' CEO commented:

 

"We're very pleased to submit this s.35 planning request to the Government
which deals with the major elements of the integrated MESH project. Our s.35
submission sets out what we believe to be the significant contribution that
the MESH integrated energy project can make to delivering Britain's future
ambitions in energy affordability, security and decarbonisation.

 

A s.35 submission is a process that can streamline government approvals, cut
through red tape and deliver major time and cost benefits in complex projects
across design, planning, mobilisation and installation.

 

On the back of the NSTA's decision on our Gas Storage licence application,
EnergyPathways is now reviewing a number of options for taking forward the
natural gas storage and hydrogen storage elements of the MESH integrated
energy storage project which includes resubmitting the application to the NSTA
on a different basis. With Clean Power 2030 targets pending, consumer bills
rising and energy security under threat, we will be focussed on avenues that
can deliver a timely solution.

 

"The S.35 request covers the key elements of the MESH project. MESH's planned
LDES and flexible power capacity facilities can help harness value for
consumers from Britain's ever-increasing wasted wind power. MESH's low-carbon
flexible power capacity can deliver secure, cost-competitive back up power to
the grid when the wind is not available. Further, MESH's clean hydrogen
production facilities will help kick start decarbonisation of the UK's
industrial sector.

 

"If EnergyPathways is successful in its s.35 application, MESH will be well
positioned to help further the UK's ambitions to be a global leader in clean
energy and deliver on its Clean Power by 2030 targets, while shoring up the
country's energy security and addressing the mounting costs of net zero on
consumer bills.

 

"We are working with our strategic partners, Siemens Energy, Hazer Group-KBR,
Wood plc and Costain to be ready to progress the MESH integrated project with
these nationally significant goals in mind."

 

 

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 clean hydrogen and low
carbon flexible power for the UK market for over 25 years. MESH is an
integrated energy system solution. It is electrifying and integrating existing
infrastructure, connecting gas storage, hydrogen storage, and compressed air
storage technologies with offshore wind and decarbonised power generation to
establish a new major decarbonised energy hub for the UK.

 

The MESH system is designed to harness curtailed offshore wind power in an
offshore LDES salt cavern storage as compressed air and hydrogen, with
associated large scale natural gas storage in offshore gas field reservoirs.
During periods of low renewable energy availability, stored energy resources
will be utilized as follows: compressed natural gas will generate electricity
via a gas turbine; compressed air will be expanded through a turbine to
produce power; and in the future, hydrogen will be used in a
hydrogen-compatible gas turbine or fuel cell to generate electricity.

 

This integrated system is expected to provide low- to zero-carbon dispatchable
electricity to the grid, enhancing energy security and flexibility. Emissions
can also be potentially captured and stored in nearby CCS reservoirs.
Additionally, the stored hydrogen can be supplied to the UK's emerging Project
Union hydrogen network, contributing to emissions reduction across the broader
UK energy system.

 

MESH is designed to be the UK's largest integrated energy storage facility
combining natural gas, compressed air and hydrogen storage. It will be able to
store up to 20 TWh of energy. The MESH project is intended to deliver on the
Government's 2030 Clean Power timeline and will 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 East Irish Sea region. EnergyPathways aims to play its
role in supporting the Government in accelerating the UK's energy transition.

 

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the
European Union (Withdrawal) Act 2018). The Directors of the Company are
responsible for the contents of this announcement.

 

 

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/mPq5KP
(https://energypathways.uk/link/mPq5KP)

 

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, c/o Burson Buchanan (Financial PR)
 Ben Clube / Max Williams

                                                                              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
(http://energypathways.uk/auth/signup) /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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