REG - EnergyPathways PLC - Secures a First-Mover Advantage in UK Graphite

EnergypathwaysAnnouncement

22/10/2025 11:00

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RNS Number : 3978E  EnergyPathways PLC  22 October 2025

22 October 2025

EnergyPathways plc

("EnergyPathways" or the "Company")

 

EnergyPathways Secures a First-Mover Advantage in UK Battery Graphite with
Hazer Partnership

EnergyPathways (AIM: EPP), the UK energy transition company, is pleased to
announce that it is commencing techno-commercial studies with Hazer Group
Limited ("Hazer") in relation to graphite production from its planned MESH
project ("MESH"). High grade synthetic graphite will be produced as a
by-product from the MESH low-carbon hydrogen production facility to be located
in Barrow-in Furness. Graphite has been identified by a number of countries,
including the UK, as a critical mineral to meet their net zero ambitions.

 

The collaboration with Hazer offers EnergyPathways the opportunity to
establish MESH as a first-mover in UK battery-grade synthetic graphite
production which could supply the accelerating global demand for secure,
low-carbon battery materials. The Company's potential future graphite
production may provide the Company with a major additional revenue stream.

 

Transformational Partnership with Hazer

 

In July 2025, EnergyPathways entered into a strategic engagement and MOU with
Hazer, a global leader in methane pyrolysis hydrogen production, licensed
worldwide through its alliance with KBR Inc. Under the agreement,
EnergyPathways holds the exclusive rights to deploy Hazer's hydrogen and
graphite production technology in the UK, providing a strong competitive
advantage in one of the most strategically important sectors of the clean
energy transition.

 

Importantly, Hazer also has a strategic partnership with Mitsui & Co. Ltd.
("Mitsui") to explore and develop markets for Hazer graphite, which is
targeting a range of potential applications, including high-end uses across
the battery, anode and advanced materials sectors. This partnership positions
EnergyPathways to leverage premium market access and offtake opportunities
across the UK, EU and globally as the MESH project progresses towards
development. Mitsui is a blue chip company with a market capitalisation of
around £56 billion.

 

High-Impact MESH Project: Clean Hydrogen and Battery-Grade Graphite

 

The Hazer-KBR technology converts natural gas into low-carbon hydrogen and
high-purity synthetic graphite with no CO₂ emissions, establishing a
game-changing decarbonisation pathway for industrial hydrogen production and
critical mineral supply.

 

The MESH facility is designed to deliver:

 

·      90 MW of low-carbon hydrogen production capacity (~20,000 tonnes
per annum)

 

·      Up to 60,000 tonnes per annum of synthetic graphite with an
initial 95% purity, with potential to upgrade to >99.9%

 

This dual-output model offers compelling economics and diversified revenue
streams in two high-growth, government-backed sectors of clean hydrogen and
battery materials.

 

Recently, battery-grade synthetic graphite prices have exceeded as much as
US$10,000 per tonne, more than 120% higher than pre-pandemic levels,
reflecting tightening supply and strong demand from the EV and energy storage
sectors.

 

The Hazer technology is currently attracting strong inbound interest from
global battery, anode and materials manufacturers, underscoring its strategic
relevance and scalability in emerging energy markets.

 

Ben Clube, CEO of EnergyPathways, commented:

 

"EnergyPathways, with its flagship MESH project, continues to be a leading
innovator in the UK's energy transition and in offering affordable low-carbon
energy solutions. The Company has the exclusive right to deploy Hazer
low-carbon hydrogen and graphite production technology in the UK. This
positions MESH as a potential major producer and supplier of high quality and
battery grade graphite that can meet the UK's growing demand for this critical
mineral in energy transition. MESH's potential graphite production capability
can play an important part in shoring up the UK's energy security and its
critical minerals supply chain."

 

Glenn Corrie, Managing Director and CEO of Hazer Group, commented:

 

"EnergyPathways' MESH project represents a landmark opportunity to develop one
of the UK's largest integrated clean energy hubs, combining long-duration
storage, low-carbon hydrogen and the production of critical minerals like
battery-grade graphite. With graphite recognised as essential to the energy
transition and China's recent export restrictions underscoring supply chain
fragility, MESH provides an important step towards building secure,
sustainable alternatives for the UK and Europe."

 

Kirsty Benham, Chief Executive Officer, Critical Minerals Association (UK)
commented:

 

"EnergyPathways' MESH project is an exciting, innovative opportunity for
integrated clean energy solutions, and I'm delighted that the Company is
looking to develop graphite production capability, particularly considering
the importance of graphite for the UK's critical minerals supply chains. I
look forward to working closely with and supporting the work of EnergyPathways
as a new member of the Critical Minerals Association (UK)."

 

Favourable Market Dynamics: Graphite Demand Surging

 

Graphite is classified as a Tier-1 critical mineral, indispensable to
lithium-ion batteries, electric vehicles, renewable energy storage and
advanced manufacturing.

 

With China controlling over 80% of global supply, the graphite market faces
acute supply chain risk. Concerns over Chinas dominance have intensified as
the market tightens, driven by recent export restrictions on processing
technologies and intellectual property driving governments to urgently
diversify and localise graphite sourcing. The United States' planned 93.5%
tariff on Chinese graphite, along with similar measures in Europe, are
amplifying opportunities for non-Chinese, ESG-compliant graphite production.
As the world's dominant supplier, any disruption from China could have
immediate impacts on industries reliant on graphite - highlighting the
strategic importance of locally produced, low-emission, high-purity graphite.

 

Against this backdrop, EnergyPathways' MESH project is being positioned to
deliver secure, sustainable and high-purity graphite supply into premium
markets, supporting significant long-term value creation potential for
shareholders.

 

Strategic Fit with UK's Net Zero and Critical Minerals Policy

 

Methane pyrolysis is a qualifying technology under the UK Government's
Low-Carbon Hydrogen Standards. Hazer technology meets key criteria for
scalability, readiness, and emissions reduction.

 

The UK Government has formally recognised graphite as a critical mineral, with
domestic production of such materials identified as a strategic national
priority and is an important pillar of the UK Government's Industrial
Strategy.

 

On 26 September 2025, the Rt Hon Ed Miliband, Secretary of State for Energy
Security and Net Zero, confirmed that the MESH project, including both its
hydrogen and graphite production facilities, should be treated as a
development of national significance under the Planning Act 2008, underlining
the project's national importance and policy alignment.

 

About MESH

 

MESH will be a new, large scale, energy storage and decarbonisation facility
that is expected to provide a secure and dependable supply of affordable
low-carbon energy for the UK market for over 25 years.

 

The MESH integrated energy system solution comprises; large-scale Long
Duration Energy Storage ("LDES"), flexible low-carbon power capacity and
low-carbon hydrogen and graphite production with the potential to branch into
low-carbon ammonia production. MESH will connect its LDES integrated storage
system using existing infrastructure to the UK grid and nearby offshore wind
capacity to help harness value from some of the billions of pounds of the UK's
wasted wind power.

 

The MESH system is designed to capture and store curtailed offshore wind power
in offshore salt caverns as compressed air. The MESH energy storage system
combines associated large-scale hydrogen, thermal and natural gas storage
capacity in geo-storage features (the salt caverns). During periods of low
renewable energy availability, the LDES stored energy resources will be
utilised to generate low-carbon flexible power for the UK's grid via
compressed air expansion, thermal energy and hydrogen-compatible gas turbine
systems to generate electricity.

 

The MESH facility will also produce affordable low-carbon hydrogen using a
methane pyrolysis technology for which EnergyPathways has exclusive rights of
use within the UK. The hydrogen can be used to further decarbonise the MESH
flexible power generation system using its hydrogen compatible gas turbine
system. The by-product of the MESH hydrogen production facility is a
high-grade form of synthetic graphite.

 

In addition to supplying dispatchable low-carbon electricity to the grid,
MESH-produced hydrogen can support the UK's emerging Project Union hydrogen
network, contributing to broader emissions reductions across the energy
system.

 

The MESH project is targeted to be operational by 2030, subject to government
approvals and financing, in order to contribute to the Government's 2030 Clean
Power ambitions. EnergyPathways aims to play its role in supporting the
Government in accelerating the UK's energy transition.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 (MAR). Upon the publication of this announcement via
Regulatory Information Service (RIS), this inside information is now
considered to be in the public domain.

 

 

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/ (https://energypathways.uk/)

Enquiries

 

 Investor questions on this announcement                                      https://energypathways.uk/link/rAkaby (https://energypathways.uk/link/rAkaby)
 We encourage all investors to share questions on this announcement via our
 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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