EnergyPathways advances MESH project with key financing and licenses to accelerate UK's energy transition
() , a UK-based energy transition company, updated markets on its MESH energy storage project, being developed to support the UK government's "Clean Power by 2030" target.
MESH is a new large-scale energy storage facility, expected to provide a secure and dependable supply of natural gas and green hydrogen for the UK market for 20+ years. It will be able to store in excess of 20 TWh of energy. The project remains on track to achieve Final Investment Decision (FID) by the end of 2025, with operations expected to commence at the end of 2027.
EnergyPathways reported a number of key developments on the MESH project. said it had signed an MOU with a clean energy fund for equity financing priced at "multiples to current share price", minimising shareholder dilution. The funding complements the project's existing Global Green Asset Financing (GGAF) loan facility, providing capital for MESH's growth plans in gas storage, hydrogen and decarbonised power generation.
Following consultations with the North Sea Transition Authority (NSTA), said an opportunity had emerged to request a new straight-to-development petroleum licence for MESH that aligned with the project's goals. The previous P2490 licence was not ideally structured to allow delivery of the project, and has now lapsed.
Furthermore, said it had begun discussions with a "Tier 1 FTSE 100 company" regarding long-term gas storage capacity and gas sales offtake for MESH, as well as debt financing for the gas storage development.
is awaiting a final decision on its gas storage licence application to NSTA, which is expected in the coming weeks. The development of the MESH gas storage project will advance under this licence through to development plan approval, construction, installation, and operations.
On the engineering front, said it submitted a final concept engineering report for MESH-H2 to DESNZ. MESH-H2 is a large-scale 640MW salt cavern hydrogen storage facility with total storage capacity of 2.8 TWh. It will be integrated with the wider MESH project and linked to offshore regional wind.
Overall, a very positive update from as it awaits its gas storage licence from NSTA. The MOU for equity financing alongside discussions with a FTSE 100 company on gas sales offtake and debt financing, adds to the existing GGAF facility and significantly increase 's flexibility for the project. Financially, MESH is now very well-positioned for rapid growth, and is poised to become a key contributor to meeting the UK's 2030 clean energy target.
Today's announcements further validate MESH's economics and demonstrate its ability to attract significant private capital. Private financing is likely to play an increasing role in funding the UK's energy transition. Investors welcomed the news, sending shares 42% higher.
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