EnergyPathways reports progress on Marram gas project

15th Apr 2024 10:20

(Sharecast News) - EnergyPathways updated the market on its operational and strategic progress at the Marram gas project on Monday, saying it expected the outcome of its outstanding licence applications in the first half of this year.

The AIM-traded firm said progressive engagement with regulators was intended to fast-track development at Marram.

Significant strides were reported in front-end engineering design (FEED) workstreams, including discussions with infrastructure hosts.

EnergyPathways said it was developing a fully electrified Marram subsea development concept, aiming for 100% renewable energy use, in line with government energy strategies.

A longer-term strategy would involve establishing a clean energy hub in the UK Irish Sea region, tapping into gas resources, wind energy, and geo-storage reservoirs.

The board said the North Sea Transition Authority (NSTA) now expected to announce the outcome of EnergyPathways' licence application in the second quarter.

EnergyPathways said it was continuing to engage with regulators, and had submitted requests for Marram's field development plan approvals.

Marram was progressing towards final investment decision, with ongoing environmental assessments and risk evaluations.

The company added that it participated in the Offshore Energies UK Share Fair conference, adding that engagements with authorities, stakeholders and infrastructure hosts were ongoing.

Technical teams were advancing engineering designs for Marram's all-electric, zero-emission subsea production system.

Partnerships with industry leaders and supply chain engagements were also progressing tie-back development concepts.

The firm said Marram's electrification design aligned with net zero objectives, and could qualify for government incentives.

On the strategic front, EnergyPathways said its long-term strategy included establishing an energy hub in the UK Irish Sea, leveraging gas resources, wind energy, and geo-storage reservoirs.

It said it intended Marram to demonstrate high-value development with significantly lower emissions than LNG imports.

The company said it was seeking to ensure Marram's production was powered by renewable energy and engineered for energy storage re-use.

Proposed energy hub plans would involve integrating nearby gas discoveries to increase energy supply potential.

The board said the East Irish Sea region's proximity to major grid constraints and existing wind farms made it an ideal location for energy storage and gas power generation.

It said the energy hub could connect to regional carbon dioxide storage, hydrogen hubs, and industrial demand centres, offering reliable and cost-competitive "net-zero ready" gas power generation.

EnergyPathways explained that it was aiming to manufacture net zero energy products, and capitalise on price arbitrage opportunities during peak gas demand.

"We are pleased to report on positive progress with regard to the decarbonised development concepts that underpin our FEED studies for the Marram Project and the follow-on developments targeted by the company," said chief executive officer Ben Clube.

"We believe that this initiative positions the Company well to navigate the Marram Project through the current uncertainty in the UK's oil and gas regulatory environment.

"We maintain supportive dialogue with the NSTA and understand that we will learn the outcome of our outstanding licence application in the first half of 2024."

Clube said the company was also making good progress with the various workstreams that comprise the FEED process, as it looked to deliver the fast-track development of the "high-value and strategically important" Marram Project.

"Our focus is to ensure that Marram is a best-in-class decarbonised development that is not only fully compliant with Government and NSTA directives, but also aligns with government strategy to support decarbonised energy solutions.

"Our longer-term strategy, to create an energy hub that provides an optimal solution for the UK's energy security and transition objectives, will build on Marram's foundation position and the competitive location of the UK Irish Sea.

"In that regard, we intend to undertake third-party studies to optimise the development of the licences that we have applied for, to enable quick and inexpensive transition of depleted fields into gas storage, including potential hydrogen storage, supporting value added energy solutions including decarbonised back up power generation."

At 0826 BST, shares in EnergyPathways were down 4.76% at 2p.

Reporting by Josh White for Sharecast.com.