EnergyPathways applies for Irish Sea gas storage licence

19th Aug 2024 12:29

(Sharecast News) - EnergyPathways announced on Monday that it has submitted a gas storage licence application to the North Sea Transition Authority (NSTA) for its proposed Marram Energy Storage Hub (MESH) project.

The AIM-traded firm said the application covers the Marram Gas Field, 100% owned by the company and located offshore in the UK Irish Sea.

It said the MESH project was designed to be a major energy storage facility, capable of storing enough natural gas and green hydrogen to supply energy to 2.2 million UK homes over winter.

The facility's underground storage capacity was estimated at around 50 billion cubic feet of gas, matching the size of the UK's largest existing gas storage facility at Rough.

MESH was intended to play a crucial role in stabilising the UK energy market, the board explained, by mitigating commodity price volatility, which could help lower energy costs for consumers.

The project would also contribute to the UK's energy transition by being fully-decarbonised and powered by renewable wind farms in the Irish Sea.

It said the gas produced would have a carbon footprint intensity around one-tenth that of imported LNG, making it a significantly greener option.

The MESH facility was designed with future potential in mind, including the ability to store green hydrogen produced from excess wind power.

That capability could offer a critical long-duration energy solution as the UK's renewable energy sector continued to expand, addressing issues like wind curtailment that were projected to cost UK consumers up to £5bn annually by 2035.

Located 11 miles from the Lancashire coast, the MESH facility was strategically positioned near seven to eight gigawatts of existing and planned offshore wind power, reusable gas pipelines, and key carbon capture and storage (CCS) projects.

That proximity to major energy infrastructure and high-demand industrial centres in north-west England made MESH ideally suited to support the region's decarbonisation efforts, the board added.

EnergyPathways said it had garnered support from several major engineering and energy companies interested in participating in the MESH development, adding that it would continue negotiations with potential partners in the coming months.

"We are delighted to have submitted our gas storage licence application to the NSTA," said chief executive officer Ben Clube.

"As part of this, the company has assembled a number of tier-one energy and engineering companies that are interested in participating in the MESH project.

"In reaching this milestone for MESH, we are pleased to be bringing forward an energy transition project that strongly aligns with the UK government's energy policy and objectives."

Clube said that with the UK having "some of the lowest levels" of gas storage of the world's major economies, and it "becoming increasingly dependent" on LNG imports, the firm believed an expansion of the UK's gas storage capacity would be vital for a "dependable and secure" energy supply.

"In the event of being successful with this licence application, we will integrate it into our Marram Project development plan ahead of a final investment decision."

At 1046 BST, shares in EnergyPathways were down 4% at 2.4p.

Reporting by Josh White for Sharecast.com.