Member Info for tomhuk2000

Https://x.com/smallcappixuk/status/1914582921517666812?s=46&t=IHEn1TE0c7FNFBktt6H8XQ

Https://www.telegraph.co.uk/business/2025/04/14/plans-for-giant-gas-filled-caverns-to-avoid-net-zero-energy/

Absolutely Barnet. Risks for sure but I’m very hopeful.

28% up from last nights placing price Bengot. Have you added anything to your supposed holding?

Hi Starbright

Yes I think they only took what they needed from the GGAF and when the MOU for more preferential financing came along they elected to hold off on drawing down more. Makes good sense. I don’t necessarily think any more onerous terms were stumbled upon, I think it’s just that a better option was presented.

With regard to information asymmetry and the assumption EPP are now in a non news flow zone due to being able to buy out of a closed period… The only news that is market sensitive here at the moment is the award of the gas storage license which isn’t public knowledge yet as the NSTA haven’t announced it.

So I think the BOD have raised and bought with confidence that the approvals will land and in time for it not to be a breach of market rules.

Following the license approval… there’s a lot of potential news flow to come.

BarnetPeter, hello 👋🏻, yes, I certainly agree that the government has a knack of scoring own goals with regard to energy policy. However MESH is a project that ticks every box in the labour party manifesto (and more or less appeals perfectly cross party). The company have openly stated they do not require any government funding (due to private sector investment) and all they require now is the gas storage license approval. Interestingly, 9 km to the west is the Bains gas storage facility that is fully licensed and approved. So, as a project that delivers homegrown natural gas, offers gas and hydrogen storage, offsets government curtailment costs for waste wind energy And has compressed air long duration storage…. It looks a very good bat to be a win-win for EPP and the government

Hi Starbright,

Yes I did say that. EPP’s cash balance was modest but sufficient and they had access to the £5.1m GGAF (Green loan facility) with which the cash runway would have seen them through past FID at the end of this year.

However, as per last months RNS, an MOU with a cornerstone green energy fund was agreed to provided finance at multiples of the current SP. As I understand it from comms with EPP, the cornerstone financer will enter once the license is approved (imminently I hear).

So the decision, with the cornerstone fund, was taken to raise the necessary funds to see them through until license approval and the investment from the cornerstone fund. They have done this as the GGAF drawdown would have charged 12% interest and incurred dilutive warrants.

So a closed in house, no broker raise was issued and as you can see. The results are positive.

I hope that helps 👍🏻

Currently up 26% above the placing price on the morning after.

So, #EPP have just had a cash top up of over £700,000, the BOD have all bought (and not just token amounts), the raise was a strategic in-house, no broker no warrant affair that sends a very clear message to the market. And they are now attracting the eye of mainstream media outlets (see Telegraph Article last Sunday). On top of that the CEO has stated that MOU’d cornerstone finance is ready to go on the issue of the licenses (however those same financiers are presumably happy to throw over £600,000 into the mix at this stage)… all whilst avoiding the use of the GGAF loan many skeptics were so critical of… all of this at a time when the government are at their most active with regard to streamlining infrastructure application reforms and the approving of licenses.

Call me an optimist, but yes and I think I might do very well out of this Bengot 😉

Just a short sentence: I’m sure everything is fine.

(These deals of course are reliant on license approval and come with NDA’s as standard)

New reforms from DESNZ and OFGEM to be announced later today to streamline clean energy projects.

https://www.gov.uk/government/news/clean-energy-projects-prioritised-for-grid-connections

Online version link: https://www.telegraph.co.uk/business/2025/04/14/plans-for-giant-gas-filled-caverns-to-avoid-net-zero-energy/

Front page of the @Telegraph’s Business and Money section for @energy_pathways #EPP

Key quote: “We don t want any public money. We just want permission to get on with it.”

https://x.com/redditdeluxe/status/1911434486408954266?s=46&t=IHEn1TE0c7FNFBktt6H8XQ

“ Great to see the Govt's commitment to a low-carbon hydrogen market with the shortlisting of projects in HAR2.

EPP sees hydrogen playing a critical role in the UK’s energy transition and awaits confirmation of its outstanding hydrogen storage licence application for MESH.”

https://x.com/energy_pathways/status/1909621700376871066?s=46&t=IHEn1TE0c7FNFBktt6H8XQ

I’ve had a few DM’s asking how confident I am that #EPP @energy_pathways will be granted storage license approvals for MESH. The answer I give is: Yes, very confident indeed, and for these reasons:

• In May 2024 EPP were approved to apply for an “out of round” application for the Marram license. This is usually only permitted “if justified by exceptional circumstances… Usually, the NSTA will only consider an application where a potential applicant can demonstrate a firm commitment to near-term activity.” Source: NSTA website.

Recognition by the NSTA that MESH is a project with real potential.

• As per the RNS in August 2024 “A number of major tier one engineering and energy companies, interested in participating in EnergyPathways' MESH development have provided letters of support for our gas storage licence application.” A ringing endorsement from industry leaders.

• In October 2024 were invited by the NSTA & DESNZ to consult as part of the Hydrogen Storage Business Model (HSBM) Design Group. This group comprises a select number of companies, including several Tier-One companies that are at the forefront of the UK's energy transition. It would be odd if the company advising the government about gas and hydrogen storage were then denied the opportunity to store gas and hydrogen.

• In December 2024 the NSTA & DESNZ approved the Operatorship License for the Marram gas field. A huge milestone for EPP and a vote of confidence from the NSTA.

• EPP are consulting with the NSTA and Crown Estate to restructure the original license application to make it a “straight to production” license and more logistically and financially beneficial to EPP. This demonstrates a very positive working relationship with the regulatory bodies involved.

• In March EPP presented the MESH project at the @OEUK_ Share Fair, an event sponsored by the NSTA.

This again shows an appreciation by the NSTA for the potential in MESH

• As per last week’s Climate Change Levy RNS, EPP will be applying for the HAR3 (Hydrogen Storage Allocation Round).

This would not be done if there wasn’t significant confidence the storage license would be approved.

A copy and paste job for you too Bengot.

We went through this with LastStanding several times.

The CEO clarified in an interview in January that the initial £100k drawdown of the £5.1m GGAF loan has completed and was done as per terms of the agreement and further drawdowns would commence only if funds were needed. So the fact nothing more has been drawn down demonstrates that the EPP cash balance is fine at the moment.

Also with a MOU with a cornerstone green energy fund on the table at multiples of the SP the sensible route would only be to use the GGAF fund as a back up.

They have also RNS’d that they are in talks with a FTSE 100 gas offtake partner who will potentially be providing project level debt finance… which is rather good!

So to make sure new investors aren’t mislead, the CEO has repeated many times he holds 5.96% of the company and isn’t interested in heavily dilutive cash raises and he is aligned with shareholders on this subject.

Happily, your comment has allowed me to demonstrate the very good cash position EPP are in. Thanks Bengot!

I think that clears that up.

I’ll just copy and paste my last response to your post

Ah sharebel, always a bullish sign when you turn up.

As I’ve stated before, infrastructure plays like EPP have an investment/value dynamic. We are not going to stay at this level until we are actually producing gas… to think so is utter nonsense.

At £10-11m MCAP EPP will rerate substantially when the licenses are approved and the RNS’d cornerstone fund detail is confirmed and the project level strategic funding is announced from the FTSE 100 gas offtaker.

Quite simply, when funding is confirmed this stops being a £10m MCAP company.

Deary me 😂

A summary of #EPP @energy_pathways:

• The MESH Project will have an integrated energy storage capacity of 20TWh capable of heating 2.7m homes

• MESH offers a fully diversified energy solution combining gas production/storage, hydrogen production/storage and compressed air long duration energy storage (LDES)

• When fully operational MESH will be the UK’s largest gas storage hub & Europe’s biggest LDES facility

• 100% owned, fully appraised Marram Gas Field contains a recoverable 46bcf gas

• With the addition of the Knox & Lowry Gas fields, recoverable gas will be 100bcf

• License Operatorship Approval granted for Block 110/4a, which includes the Marram Energy Storage Hub (MESH) by NSTA (North Sea Transition Authority) December ’24

• License Application Decisions for Gas/Hydrogen Storage at Marram are imminent having worked closely with the NSTA to restructure the license application to a “straight to production” license that will benefit the company logistically and financially moving forward

• Knox and Lowry gas field licenses are in consultation with the NSTA

• Phase 1 & 2 of MESH will provide between 500-600 million therms of gas storage with injection rates of 1.7m-2.0m therms per day at Marram

• The addition of the Knox and Lowry fields, at this stage, are estimated to increase the gas storage capacity of MESH to circa 1.5 billion therms of gas

• Hydrogen storage capacity at Marram is estimated to be 2.8TWh, the aim would be to triple this with the addition of the Knox and Lowry fields

• MESH will be the largest LDES facility in Europe, with their innovative H-CAES compressed air long duration energy storage providing rapid, low cost energy storage with a multi day storage capacity (far exceeding that of competitors)

• EPP hold intellectual property (IP) rights for the H-CAES technology and are looking to exploit this beyond the MESH project

• MESH will be powered by economical renewable energy via wind, solar and batteries

• The project will use state of the art AI energy management technology

• £5.1m Green Loan Facility in place to fund MESH through beyond FID

• MOU signed for cornerstone investment with a Green Energy fund at multiples of the current SP

• FTSE 100 Tier One partner talks for long term gas storage and gas sales offtake agreements, as well as providing project debt finance

• FID (Final Investment Decision) scheduled for the end of 2025

• First Gas production scheduled for H2 2027

• First Gas Storage scheduled as early as 2028

• EnergyPathways has formed a consortium of tier one energy companies to develop MESH, comprising one of the world’s largest developers of wind power, one of world’s largest integrated oil and gas companies, a FTSE 250 global leading engineering consultancy and global market leader in industrial automation and industrial software

• Wood Group announced as Lead Engineering Par

• In October 2024, the Department of Energy Security and Net Zero (DESNZ) invited EnergyPathways to participate in the Hydrogen Storage Business Model (HSBM)Design Group. This group comprises a select number of companies, including several Tier-One companies that are at the forefront of the UK's energy transition.

• The ability to attract private sector investment means that MESH isn’t reliant on government or taxpayer money. However, the MESH project aligns with cross-party priorities re energy storage and should attract public sector funding via grants and strategic investment

- EPP plan to exploit “stranded” gas assets in the Irish Sea for gas production and storage. These assets would be otherwise lost due to decommissioning

- MESH provides a wide ranging solution to the UK’s energy transition goals and energy security, and helps solve many of the problems encountered by the renewable energy sector

Briefing Document: https://energypathways.uk/activity-updates/mesh-project-briefing

A very good write up from Charles Archer here about #EPP

@that_stocks_guy

https://x.com/that_stocks_guy/status/1907030278524072418?s=46&t=IHEn1TE0c7FNFBktt6H8XQ