9th Dec 2024 11:24
(Alliance News) - EnergyPathways PLC on Monday said it has agreed a strategic engineering partnership with Wood Group UK Ltd, a subsidiary of FTSE 250-listed John Wood Group PLC.
The Worthing, England-based low-emissions energy company said it has chosen Wood to be the project lead engineering partner for its Marram Energy Storage Hub project in the Irish Sea.
Mesh is a new large scale energy storage facility to provide a supply of natural gas and green hydrogen for the UK market.
EnergyPathways said Wood will complete concept engineering and pre-front-end engineering and design work. It said the agreement allows the companies to progress the Mesh project through the engineering, construction, commission and management phases if they choose to do so.
EnergyPathways is targeting this January to complete concept and pre-FEED activities. It is aiming for a final investment decision for Mesh at the end of 2025.
John Wood has an exclusive period to offer terms to progress into FEED and further phases of the project once commissioned.
EnergyPathways also provided notice of a part drawdown for its loan agreement with Global Green Asset Finance to fund the MESH concept activities. The company said it satisfies the GBP100,000 minimum drawdown amount and is to be paid by the end of the year.
Chief Executive Officer Ben Clube said: "We are very pleased to enter into a strategic agreement with Wood for it to be our lead engineering partner for the Mesh project. Wood will bring a wealth of energy transition engineering consultancy capability, coupled with strong project management skills to help us deliver our integrated energy infrastructure project."
Shares in EnergyPathways were down 2.9% to 9.33 pence in London on Monday morning. Shares in John Wood were down 0.4% to 64.12p.
By Michael Hennessey, Alliance News reporter
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