EnergyPathways PLC (AIM:EPP) has taken a significant step towards boosting clean energy in the UK by signing a memorandum of understanding with Hazer Group to develop a hydrogen production facility using cutting-edge methane pyrolysis technology.
Hydrogen is increasingly seen as a key to reducing carbon emissions, especially in sectors hard to decarbonise, such as heavy industry and transport.
Methane pyrolysis, the process Hazer’s technology uses, splits methane (the main component of natural gas) into hydrogen and solid carbon without producing carbon dioxide, a major greenhouse gas.
This makes it an attractive way to produce what’s known as “clean hydrogen.”
Under the agreement, EnergyPathways gains exclusive rights for 12 months to use Hazer’s technology in the UK and plans a 90-megawatt facility capable of producing 20,000 tonnes of hydrogen annually.
The plant will also produce clean ammonia, widely used as a fertiliser and industrial chemical, and synthetic graphite, a mineral critical to batteries and currently mostly imported.
The project ties into the UK government’s drive to cut “Scope 3 emissions”, the indirect emissions from the wider supply chain, and to strengthen the domestic supply of critical materials, especially as new import tariffs on ammonia are set to come into force in 2027.
EnergyPathways and Hazer will now work on detailed engineering studies to finalise the design and feasibility of the plant, aiming to move towards full-scale development soon after.
The new facility will form part of EnergyPathways’ broader MESH energy storage project, offering flexible, low-carbon power solutions for the UK grid.
"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," said EnergyPathways CEO, Ben Clube.