EnergyPathways PLC (AIM:EPP) this week highlighted further progress on the development of its MESH project, with chief executive Ben Clube discussing a new agreement with Associated British Ports (ABP), regulatory milestones and the project's long-term growth potential.
Speaking with the Proactive studio, Clube said the agreement with ABP provides the company with access to land in Barrow-in-Furness, where it intends to develop key onshore facilities supporting the MESH project.
The planned infrastructure includes operational support facilities and a hydrogen production plant connected to offshore storage assets.
Clube described MESH as a large-scale integrated energy storage development that is expected to become the UK's largest project of its kind. The project is designed to combine compressed air energy storage, gas storage and hydrogen storage to support UK energy security and provide long-duration energy storage capacity.
A significant catalyst for the company is the growing level of government support behind the development.
Here, we take a look at what was said when Ben Clube joined the studio.
Proactive: Ben, it's great to see you again. How are you?
Ben Clube: Great to be here. Thank you.
Proactive: Lots to cover. Most recently, EnergyPathways announced a deal with Associated British Ports. Can you explain the arrangement and how it will work?
Ben Clube: The agreement with Associated British Ports gives EnergyPathways access to land where the company intends to develop onshore facilities for the MESH project. MESH is a large-scale integrated energy storage project that is expected to be the UK's largest. It will store energy through compressed air energy storage, gas storage and hydrogen storage, supporting UK energy security and helping reduce household bills.
The onshore facilities will support storage operations and will also include a hydrogen production plant connected to offshore storage infrastructure.
Proactive: It seems like the location is strategically important for the project's long-term success.
Ben Clube: Absolutely. The facilities will be located in Barrow-in-Furness, a major development area in the UK. The location will support hydrogen production and the industries that can develop around that capability, making it a significant component of regional development.
Proactive: There appears to be strong government and community support behind the project.
Ben Clube: There is considerable local, regional and national support. The project has been designated a project of national significance by the UK government. Support also comes from Westmorland and Furness Council, Enterprising Cumbria and Team Barrow, which is responsible for redevelopment initiatives in the area. The company is now progressing the project with a target final investment decision in 2028.
Proactive: You also recently announced that the North Sea Transition Authority granted a gas storage licence. Tell us about its significance.
Ben Clube: The licence covers the area where EnergyPathways plans to undertake storage operations. It includes significant salt sequences that are ideal for developing large underground storage caverns.
Each cavern is expected to be approximately the size of four St Paul's Cathedrals, allowing large-scale, low-cost energy storage. The licence area has the potential to support more than 60 caverns. The initial compressed air energy storage project requires only four caverns and would still represent the UK's largest long-duration energy storage project.
Proactive: Many investors are following these milestones closely. You've also updated the company's corporate presentation.
Ben Clube: The updated presentation outlines the company's development plan, near-term milestones and pathway toward a final investment decision. It also details the value proposition and growth potential associated with the MESH project and broader storage opportunities.