EnergyPathways reports further progress on MESH gas, hydrogen storage project

London-listed EnergyPathways reported on February 24 another step forward in its plans to establish an integrated natural gas and hydrogen storage project in the UK’s East Irish Sea.

The MESH project, expected to be operational by late 2027, will initially focus on establishing the undeveloped Marram gas field as a gas storage facility. But later it will also integrate hydrogen storage and decarbonised power generation. 

EnergyPathways said it had signed a non-binding memorandum of understanding (MoU) with a clean energy fund for cornerstone equity financing at a premium to its current share price, limiting shareholder dilution. The funding, alongside a Global Green Asset Financing (GGAF) loan and other debt arrangements, will help advance MESH’s development, EnergyPathways said.

The company has also begun discussions with a FTSE 100 firm regarding a long-term gas storage capacity and offtake agreement, as well as potential project debt financing. If finalised, this agreement would provide greater financial stability and a long-term revenue stream for MESH’s natural gas storage operations.

Additionally, EnergyPathways has submitted a final engineering report to the Department for Energy Security and Net Zero (DESNZ) for MESH-H2, the second stage of the project will involve preparing a salt cavern near the Marram field for storing up to 2.8 TWh of hydrogen. The facility will help store surplus renewable energy produced from wind farms in the area, and supply it to the grid when needed.  

A key regulatory milestone is also approaching, with the company expecting a decision soon from the North Sea Transition Authority (NSTA) on its gas storage licence application. The company previously held an exploration licence, P2490, which lapsed, and has now requested a new, development-focused petroleum licence more suited to the MESH project’s objectives.

The UK government has made clean power a priority, aiming to achieve 43-50 GW of offshore wind and 27-29 GW of onshore wind capacity by 2030, alongside an expansion of long-duration energy storage. However, many of these projects rely heavily on public funding.

“With the UK government burdened by debt and limited room to raise taxes, continued reliance on public financing to meet 2030 targets appears unsustainable,” said EnergyPathways CEO Ben Clube. “The opportunities for private capital-backed energy transition projects are increasing, and it is clear the government is giving priority to projects that can accelerate the UK’s energy transition.”

Clube also praised UK regulators for adapting their approach to accommodate new energy transition technologies. “Our experience has been that UK regulators are effective operators in a moving landscape,” he said. “The ability to adjust regulations to match the pace of transition is critical for success.”

MESH is expected to store over 20 TWh of energy, making it the UK’s largest long-duration storage facility integrating natural gas and hydrogen. The project is designed as a fully electrified, zero-emission hub powered by renewable offshore wind from the Irish Sea region.

EnergyPathways remains on track to reach a final investment decision by the end of 2025. With operations set to begin in late 2027, the company believes MESH will be a major contributor to the UK’s energy transition strategy and a reliable provider of flexible energy supply.

“The key elements identified by the government to back up wind capacity are carbon capture and storage, energy storage, hydrogen and decarbonised gas power generation,” Clube said. “MESH provides a commercially competitive solution that can be delivered within the short timeframe available.”