REG - EnergyPathways PLC - MOU for clean hydrogen development facility

EnergypathwaysAnnouncement

Tue 07:00

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RNS Number : 0150R  EnergyPathways PLC  15 July 2025

15 July 2025

EnergyPathways plc

("EnergyPathways" or the "Company")

 

MOU for clean hydrogen development facility

EPP signs MOU for Hazer technology to decarbonise energy supply in the UK and
mitigate Scope 3 emissions

 

EnergyPathways (AIM: EPP), an energy transition company, is pleased to
announce a strategic engagement with Hazer Group Ltd ("Hazer") to use its
proprietary hydrogen production technology - globally licensed through Hazer's
strategic alliance with KBR Inc ("KBR"), a global engineering leader and
technology solutions provider. This technology will be used to develop a
bolt-on clean hydrogen facility that will expand the Company's MESH integrated
energy storage project.

 

Under the MOU, the Company secures the support of Hazer as well as exclusive
rights to access Hazer's leading technology within the UK for an initial
period of 12 months. Hazer and KBR have formed an exclusive, strategic
alliance focused on the licensing and deployment of Hazer's technology in the
global ammonia and methanol markets.

 

MOU

 

Under the terms of the MOU, Hazer and EnergyPathways (the "Parties") have
agreed to negotiate and finalise a definitive binding agreement for concept
engineering studies for a Hazer licensed facility with an indicative hydrogen
production capacity of 90MW (20,000 tonne per annum). The planned MESH
hydrogen facility will enable the Company to supply decarbonised energy in the
UK and mitigate Scope 3 emissions. The MESH hydrogen facility will use
feedstocks from the MESH energy storage project and other sources in order to
produce and store hydrogen for flexible clean power generation as well as
ammonia for use in the UK and for export. The Company is also targeting
production of up to 60,000 tonnes per annum of high-quality synthetic
graphite.

 

The scope of the studies will be jointly agreed by the Parties and will
leverage the work underway with Hazer's strategic alliance partner KBR for the
integration of the Hazer technology with the production of low-carbon ammonia.
The studies are to be considered a part of a scoping phase to determine the
selected technical design to proceed to detailed Front End Engineering and
Design ("FEED"). After completion of the concept engineering studies, the
Parties will determine whether they wish to proceed into FEED.

 

Fees, timelines and other terms and conditions for the completion of the
concept engineering studies, FEED and technology licensing will be negotiated
between the Parties.  Under the MOU, Hazer has granted EnergyPathways certain
exclusive rights to use Hazer's licensed technology in the UK for an initial
period of 12 months.

 

MESH Hydrogen Production

 

The 90MW MESH hydrogen facility supports the UK government's
re-industrialisation goals by establishing domestic production of clean
ammonia and graphite, reducing reliance on imports for critical commodities.
The UK Government's energy policy framework supports methane pyrolysis
technology as a viable clean-energy pathway recognising its potential to
accelerate the decarbonisation of hard-to-abate sectors and the reduction of
scope-3 emissions.

 

Methane pyrolysis is an eligible technology for financial assistance under the
Hydrogen Allocation Round. Hazer's methane pyrolysis technology also meets the
required technical readiness level and scalability criteria. Additionally, the
UK Government has designated graphite as a critical mineral, noting that the
country is currently almost completely reliant on Chinese imports.

 

The UK Government will introduce the Carbon Border Adjustment Mechanism in
2027, adding a tariff to ammonia imports that will affect UK consumers. The
Company aims to competitively produce clean ammonia domestically, supporting
UK re-industrialisation and reducing reliance on high-emission, fossil
fuel-based ammonia imports.

 

The MESH hydrogen facility is to be included in a request for a Section 35
Direction for a Development Consent Order under the Planning Act 2008.

 

Ben Clube EnergyPathways' CEO commented:

 

"EnergyPathways continues to progress innovative solutions to ensure MESH
delivers a combination of commercial and sustainable benefits that support the
UK's wider energy policies.  The MOU and partnership to use Hazer technology
is a significant milestone for the Company's plans to provide the UK with
affordable, reliable low-carbon energy and energy products including clean
ammonia and graphite.

 

"The Company plans to develop the large-scale MESH clean hydrogen facility
that will bolt onto its MESH integrated storage project, enabling the Company
to deliver what we think will be the lowest-cost clean hydrogen production in
the UK. The MOU and MESH's hydrogen facility will offer a line of sight to the
cost-effective decarbonisation pathway for Scope 3 emissions associated with
future UK gas development projects. The project will also produce hydrogen at
scale that can further decarbonise MESH's flexible and affordable low-carbon
power capability.

 

"We look forward to progressing the studies associated with this MOU through
the scoping phase as we assess feasibility."

 

Hazer's CEO and MD Glenn Corrie said:

 

"We are delighted to be working with the experienced team at EnergyPathways to
integrate Hazer's technology into the strategic MESH infrastructure project to
provide the UK with a secure supply of affordable, low carbon energy and
products. We welcome the pragmatic approach from the UK Government that
recognises and supports various pathways to achieve the decarbonisation of
hard-to-abate sectors, with the inclusion of technology solutions such as
Hazer."

 

 

About Hazer and KBR

 

Hazer Group Ltd, listed on the ASX, is recognised as a global leader in
methane pyrolysis hydrogen technology. The company specialises in utilising
its proprietary hydrogen production process, which converts methane into clean
hydrogen and valuable by-products such as graphite, without emitting carbon
dioxide. Hazer has established a global strategic alliance for the licensing
of its world leading technology with KBR, a renowned leader in ammonia and
methanol production, further enhancing the commercial potential and
scalability of its technology. Hazer has developed a large number of
partnerships with leading energy companies for the potential deployment of its
technology across the world.

 

KBR is a global engineering leader and technology solutions provider. KBR is
recognised as the global leader in ammonia and methanol production with 50+%
ammonia market share with over 250 licensed ammonia, methanol and hydrogen
production plants. KBR is renowned for its expertise in delivering
large-scale, technologically advanced projects and plays a significant role in
the commercialisation and scaling of innovative technologies. Through its
global strategic alliance with Hazer, KBR supports the deployment of Hazer's
methane pyrolysis technology worldwide, further expanding its influence in the
clean hydrogen sector and supporting energy transition initiatives.

 

 

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. Associated
with this will be large scale natural gas storage in offshore gas field
reservoirs. During periods of low renewable energy availability, stored energy
resources will be utilised 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 expected 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.

 

 

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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