21st Oct 2024 11:10
(Alliance News) - EnergyPathways PLC on Monday announced it will collaborate with the UK government as part of a hydrogen storage design group, in line with plans to expand its existing Marram Energy Storage Hub, or MESH, project.
The Worthing, England-based low-emissions energy company said the UK Department of Energy Security & Net Zero, or DESNZ, invited EnergyPathways to participate in its hydrogen storage business model design group, alongside several other unspecified "tier-one" companies.
Shares in EnergyPathways were up 27% at 4.37 pence each in London on Monday morning.
The design group will define the DESNZ's new investment support scheme, to promote the development of hydrogen storage projects. The department hopes to complete the design process in 2025, and announce its first hydrogen storage allocation round in 2025 as well. A shortlist of projects will then be taken to due diligence and negotiation stages, with successful projects announced after about 12 months.
EnergyPathways intends to propose an expansion of its MESH natural gas and hydrogen storage facility in the hydrogen storage allocation round. This will follow the GBP5 million loan facility it secured for the project with Global Green Asset Financing Ltd earlier this month.
Chief Executive Officer Ben Clube said: "Through its involvement in the group, EnergyPathways will have an opportunity to contribute to the shape of the final commercial and regulatory design of the hydrogen storage business model that will be used in the first hydrogen storage allocation round.
"Our invitation results from our progressive engagement with the relevant authorities and shows the collaborative approach required between government and industry to enable the UK to achieve its objectives with regards to an effective net zero and energy security agenda. We believe EnergyPathways' MESH project is fully aligned with the UK government's strategic objectives for hydrogen storage and transportation and has a number of competitive advantages to warrant government support under the [hydrogen storage business model]."
By Emily Parsons, Alliance News reporter
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