EnergyPathways Regulatory News (EPP)

10 February 2025

EnergyPathways plc

("EnergyPathways" or the "Company")

MESH Development Design Selected Following Pre-FEED Activities

EnergyPathways (AIM: EPP) is pleased to announce an update on its pre-Front End Engineering and Design ("pre-FEED") activities for the Marram Energy Storage Hub ("MESH" or the "Project") and the selected technical design for the initial phase of the MESH development. The technical engineering and design studies have been undertaken by EnergyPathways in conjunction with its strategic partners Wood plc, Mermaid Subsea Services (UK) Limited and PDi Ltd.

The MESH development has been designed as an integrated energy system solution. MESH will connect gas production, gas storage, hydrogen storage, offshore wind and decarbonised gas power generation to provide the UK with a long term secure and dependable supply of clean energy. MESH has been designed as a decarbonised facility with production operations fully electrified and powered by renewable energy. The MESH development design will repurpose existing late life gas infrastructure as a future energy hub that can help harness the significant energy resources of the North West of England.

The MESH project development is initially centred on the development of the Marram Gas Field as a gas storage and production facility. The Final Investment Decision ("FID") for this is planned for the end of 2025 with first production operations starting in late 2027.

The initial MESH project development involves:

· a new unmanned offshore platform ("Marram A") with four well slots, powered by renewables (wind, solar and batteries);

· two initial production wells (to be drilled Q2 2027) in Phase 1, followed by two more for gas storage (Q2 2029) in Phase 2;

· a new 9km pipeline connecting the new "Marram A" platform to an existing gas export trunkline following cessation of production from a late life gas field;

· upgrading and repurposing of existing late life onshore gas facilities with latest modern, low emission technologies to decarbonise MESH gas production and gas storage withdrawal and injection operations;

· re-purposing of industrial land in Barrow-in-Furness to minimise the Project's environmental footprint and enable a timely start up; and

· a short distance onshore tie-in to the National Gas UK Transmission System

Phases 1 and 2 will deliver a facility that will store an estimated 500-600 million therms of gas with withdrawal and injection rates of 1.7-2.0 million therms of gas per day from the combined 4 well storage facility.

This initial MESH development establishes a central energy hub for future integration with other regional energy projects, including additional gas storage, gas production, hydrogen storage, offshore wind power and low-emission power generation. These future plans for a wider integrated energy system beyond the initial MESH gas storage and production facility are being progressed in regard to:

· Hydrogen Storage (MESH-H2): along with the license application submitted for Marram gas storage, the licence area covers salt cavern hydrogen storage potential. Concept engineering has been completed and submitted to the relevant authorities for a hydrogen storage project (DESNZ, The Crown Estate, NSTA);

· Gas Storage: storage licence application requests have been submitted to the NSTA for the discovered undeveloped Knox and Lowry gas fields that are suitable for gas storage;

· Low Carbon Energy Production: ongoing engagement with various stakeholders to connect the region's wind power and to access the East Irish Sea's stranded gas resources with the MESH decarbonised energy hub; and

· Decarbonised Power Generation (MESH-POWER): concept engineering has been completed for offshore gas power generation designed to complement and support the region's wind power.

In addition, EnergyPathways has commissioned studies into static and dynamic storage reservoir and integrated production modelling, in parallel with desktop studies in preparation for the necessary environmental and seabed surveys to be undertaken later this year.

Ben Clube, CEO of EnergyPathways plc said:

"We are pleased to provide a summary of what has been a very active period for EnergyPathways as we progress MESH through the pre-FEED stage and we remain on track to achieve FID at the end of 2025. With the development design for the MESH integrated energy system now framed, we can move forward to deliver a major energy project to support the UK's energy transition ambitions.

"As a large-scale energy storage facility, MESH can play a critical strategic role in providing the UK with a secure and reliable supply of low emission energy for decades to come. It can play an important role in helping moderate the impact of international gas prices and energy import costs on household bills.

"The MESH energy hub capitalises on specific regional dynamics and integrates multiple energy assets to help the UK harness its considerable energy resources of the North-West of England including excess and curtailed wind power and regional stranded low emission gas resources. By repurposing soon to be decommissioned gas infrastructure, MESH will bring a new lease of life to important UK energy assets being abandoned by the exiting oil and gas industry.

"In parallel with the extensive technical work streams outlined above, we continue to engage constructively on MESH project financing. What is clear from our engagement with industry and financing stakeholders to date is that there is a clear recognition of the commercial proposition tabled by MESH. We believe that the potential of MESH to mobilise private and public capital in order to provide clean energy to the UK's energy transition warrants the support of a government weighed down by taxpayer subsidised projects."

About MESH

MESH is a new large scale energy storage facility that is expected to provide a secure and dependable supply of natural gas and green hydrogen for the UK market for over 20 years. MESH is expected to be the UK's largest natural gas and hydrogen energy storage facility and will be able to store in excess of 500 million therms of energy. Production operations are expected to start from the end of 2027 to ensure a reliable and secure supply of energy for the UK. MESH has been designed as a fully decarbonised and electrified zero emission facility that is to be powered by the renewable wind farms of the UK Irish Sea region. EnergyPathways aims to play a leading role in supporting the UK's energy transition and development of a hydrogen economy.

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