EnergyPathways to collaborate with govt on hydrogen storage, shares surge

21st Oct 2024 12:35

(Sharecast News) - AIM-listed EnergyPathways surged on Monday as the Department of Energy Security and Net Zero (DESNZ) invited the company to participate in the Hydrogen Storage Business Model (HSBM) Design Group.

The group comprises a select number of companies, including several tier one companies that are at the forefront of the UK's energy transition, EnergyPathways said.

The HSBM, when finalised following consultation with the Design Group, will define DESNZ's new investment support scheme to promote the development of hydrogen storage projects.

EnergyPathways said it expects the first DESNZ Hydrogen Storage Allocation Round to be launched next year and plans to submit an application for its large-scale MESH natural gas and green hydrogen storage project.

The initial focus of government support in the first Hydrogen Storage Allocation Round is expected to be on scalable geological storage for green hydrogen.

Chief executive Ben Clube said: "We are very pleased to have been invited to participate in the DESNZ Hydrogen Storage Business Model Design Group - an honour, given the select group involved including tier one companies.

"Through its involvement in the group, EnergyPathways will have an opportunity to contribute to the shape of the final commercial and regulatory design of the Hydrogen Storage Business Model that will be used in the First Hydrogen Storage Allocation Round to be launched in 2025.

"Our invitation results from our progressive engagement with the relevant authorities and shows the collaborative approach required between government and industry to enable the UK to achieve its objectives with regards to an effective Net Zero and energy security agenda.

"We believe EnergyPathways' MESH project is fully aligned with the UK government's strategic objectives for hydrogen storage and transporation and has a number of competitive advantages to warrant Government support under the HSBM."

At 1230 BST, the shares were up 30% at 4.50p.