Member Info for Edwood85

Who are you thinking Bengot is? LastStanding or Sausageonastick?

Account started yesterday so must be a multi ID

I’m going for Sausageonastick as he issued that catastrophically embarrassing post about “does the world need more compressed air?” And trashed his already tattered credibility. These clowns

Gas production is valued multiples of our current sp. But EPP and Ben are not interested in the short game and pandering to retail. They are building a serious piece of infrastructure so if you had really emailed Ben then that would have been your reply as I’ve asked the question myself.

The cornerstone investor has MOU’d at multiples of the current price. They’ve done so for the entire project as it ticks multiple boxes re zero emissions and renewable energy. They’ve not invested as a standalone gas project.

It’s not a complex idea:

1. Produce gas from Marram

2. Store gas in the emptying subsea cavern as the gas is extracted

3. Use electrolysis to covert excess wind from nearby wind farms to green hydrogen

4. Store Hydrogen in separate subsea cavern.

5. Use Compressed Air Long duration storage to store and thus create electricity.

6. Generate revenue via gas offtake, hydrogen offtake, gas/hydrogen storage and LDES

7. Repeat the process in other nearby gas fields such as Knox/Lowry.

Simple

Wasn’t it the fount of all knowledge Sausageonastick that said the first thing to be cut in the spring budget would be renewables investment.

Wrong again! And don’t worry you’ll still be able to purchase compressed air in any quantity you like lol

Pray tell then what it is you meant by

“Because the world need more compressed air?”

We call out BS and anything idiotic. Hence our collective umbrage with your post.

I literally can’t stop laughing.

No getting out that one sausage. You’re a fool and just proved it on a public forum. What a joke

And Sausageon a stick was criticising tomhuk for not having a bibliography. That’s the kind of post that ends careers lol.

What shall we do bag up the air or put in a box to sell?

And you wonder why I had my suspicions about gallmat. Wittering on about discounting and tax. Subtle FUD sowing again.

“ When you do more than break even, you pay tax ”

I mean come on, any investor worth a dime knows that when you make a profit you pay tax. Are we really discussing this? Come on cut the BS.

WELL, an unexpected positive is the big tax break from capex investment and the clean energy allowance too. Good news huh gall?

Also there will be a likely government capex claim back on some of the project development spending as highlighted by the gov recently. More good news!

Fair enough. At least that shows the bigger picture and accurately reframes the original £100m NPV RTO data based on todays prices.

Also clears up the 6 months production FUD. Let’s move on

Where did you get production for 180 days per year?

Im trying to make sure investors reading your posts are aware of the greater potential and not put off by talk of 40% drops etc

Where did you get production for 180 days per year?

Where did you get production for 180 days per year?

The higher NPV’s are based on storage as well and come from estimates produced by an investor. Ben Clube is a well respected CEO with a great track record. If you knew that you’d know that’s why he’s not been drawn on any NPV estimates until PreFEED is concluded and beyond.

I’ve worked in the city and had a long career so have a decent nose for BS. You may be legit, in which case you’d be comfortable with me highlighting the bull case for full production and storage, not just your standalone production case (based on RTO data from Dec 2023).

2/2

“ Revenue Potential:

Centrica’s Rough field which is equivalent to the size of MESH(50 bcf capacity) generates approximately £312 million in annual revenue.

MESH could generate £320m a year from the gas storage alone, and around £360m from Hydrogen, combined this could be a mouth watering £680m a year.

If the company triples the storage capacity, it could yields 2 billion annually from gas and hydrogen combined.

NPV

I ran a model for NPV for #EPP based on the recent RNSs, using average gas prices & sale from Sep to March only

Model 1: this model only takes into consideration the gas production only.

A potential £150m CAPEX - initial investment using a 10% discount.

Production of 1.7m therm a day for 180 days (Sep to March only)

At gas prices averaging 85p a therm

Over a period of 20 years

This will equal to yearly revenues of £260m

This gives an NPV of: £1.2billion

Model 2: this model only takes into consideration the gas production only.

I assumed a potential £150m in initial investment using a 10% discount.

Production of 2m therm a day for 180 days (Sep to March only)

At gas prices averaging 90p a therm

Over a period of 20 years

This will equal to yearly revenues of £325m

This gives an NPV of: £2.6billion

Model 2: this model takes into consideration the gas production & an average Hydrogen.

I assumed a potential £150m in initial investment using a 10% discount.

Production of 2m therm a day for 180 days (Sep to March only)

At gas prices averaging 90p a therm

Hydrogen production of 200MWh at £241/MWh

Over a period of 20 years

This will equal to yearly revenues of £373m

This gives an NPV of: £3billion.

Gallmat,

Sadly I don’t trust you as far as I can throw you. Subtle (yet not so subtle) Deramping and mentioning of 40% drops and an NPV of £100 million.

Vastly underselling the value of the company by basing your estimates on RTO data from 18 months ago. Also your 200% rise and 40% drop estimates are plucked out of thin air and based on no valid data I can see. So sadly you’ll have to forgive me for not trusting you one bit.

Here is a far more concise appraisal of the company tweeted by a large long-term holder:

1/2 “Morning Campers

EPP MESH Project is A Giant Among Giants

Gas production:

Marram is fully appraised gas low CO2 Emission field approximately 46bcf of gas ~ 460 million therms, worth over £500 million (Gas prices currently at £1.2/therm)

Gas Storage:

MESH also boasts a gas storage capacity of 50BCF to 60BCF (500m to 600m therms), potentially tripling to 150 BCF with the addition of Knox and Lowry assets.

This is an impressive capacity of around 500 million to 600 million therms. Equivalent to 15 TWh to 20TWh, that is well over 2/3 of the UK storage capacity

This positions it as the largest gas storage facility in the UK.

Green Hydrogen:

With a hydrogen storage capacity of 2.8 TWh (expandable to 8.4TWh), MESH dwarfs other projects.

How will they do it:

Harness the surplus wind energy

Turn it into Hydrogen

Store it

Use it as green source of energy when it’s needed

Capacity to store 2.8TWh hydrogen

Company is looking to triple that capacity to 8.4TWh.

Funding

EPP has signed an MoU with a corner stone Fund to finance MESH at multiples the current SP alongside

EPP are also in discussion with a FTSE100 for the provision of project Debt finance

EPP has also access to £5.1m green loan facility

All of the above will ensure minimal dilution & funding for the MESH project without the need to Gov funding or tax payers money. Although discussion are ongoing & at pace, nothing is very guaranteed until it is all signed up.

Comparison Vs peers:

Comparisons with other gas storage projects underscore MESH’s potential. For instance;

BP’s recent partnership with a Spanish company involves a 25 MW project (200 GWh), making MESH 75 times larger

Star Energy’s 10 BCF facility was valued at £340 million in 2007 (£642 million today).

KIST acquired a gas storage asset with a capacity of 17 million therms for £25 million in the summer of 2024. MESH has a capacity of 500m to 600m therms) that is 28 to 35 times bigger.

This valuation suggests that MESH, with its capacity of 500/600 million therms 28/35 times larger, gives MESH a value at approximately £700m to £875m.”

Don’t waste your time mate. He’s just a time waster and if he’s serious about investing he’ll do his own research, for which you provided him with extensive links yesterday. Have a look at his posting history, he’s more than capable of researching and is just playing dumb to waste time and clog up the board.

It’s quite simple. The current license is an Operator Approval.

The license application outstanding and due soon as per yesterdays Rns is for production and storage of gas/hydrogen.

No NPV has been quoted anywhere but NPV with gas storage will be of course higher than without. value will also increase should EPP expand into Knox and Lowry.

Government isn’t required as per RNS yesterday, but it ticks all the boxes for government grants and funding. So they have options.

So all quite simple.

You struck it rich there LastStanding. Another element to deramp the company and you didn’t have to bother to do any research (again). At least you won’t have to fall back on your usual “but the green fund hasn’t been confirmed” guff. (It has in the interview but you didn’t comment when I pulled you up on that.)

Spirit own the South and North Morecambe hub as well as the pipeline mentioned in yesterdays RNS. (I doubt EPP and Wood Group would have quoted the pipeline access if they hadn’t already spoken to spirit?)

Spirit recently commented they are working with regional green energy company’s to be part of an integrated green energy system in the north west. This includes HYNET, so one would safely assume they would work with the closer by MESH project too.

I doubt a CEO of Bens calibre would have not foreseen this and put in measures to ensure it’s not an issue. Spirit have of course been mentioned in the list of potential Tier 1 partners as well, so maybe that will be the angle they’ll take.

Never mind LastStanding, to do some research after all lol

Bravo

Well I was accusing you. And based on your English language skill set I’d say it’s rich critique someone for not being in academia lol