MESH Development Design Selected Following Pre-FEED Activities

EnergyPathways has announced an update on its pre-Front End Engineering and Design ('pre-FEED') activities for the Marram Energy Storage Hub ('MESH') 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."

MESH (Marram Energy Storage Hub)

13/01/2025

Background

The new UK Government is dedicated to doubling onshore wind and quadrupling offshore wind by 2030, as a central part of its plan to fully decarbonise electricity. In that time, UK wind capacity will increase from ~30 GW to ~90 GW.

With major constraints in the UK transmission grid and current wind capacity already at ~80% of peak winter demand, we fear that much of this taxpayer subsidised investment in wind expansion will be wasted. Wind curtailments already cost UK taxpayers ~£1bn p.a. and look set to rise steeply to ~£5+bn by 2030.

Gas, accounting for ~32% of the UK’s energy mix, will remain a critical transition fuel until green hydrogen storage can be deployed at scale to harness excess wind. Until then, gas is needed to fill the demand gaps arising from intermittent wind power and is vital for supplying heat to UK homes and industries.

The UK has some of the lowest levels of gas storage of the world’s major economies. With ~40% of UK energy supply already imported, and gas imports set to rise to 80% of gas demand by 2030, gas storage will be essential to secure reliable energy supply and reduce the impact of global prices on household bills.

Ideal Location for Integrated Energy Storage

EnergyPathways is developing integrated energy storage that can provide the UK with secure flexible gas supply and leverage the growing value loss from the UK’s excess wind power by utilising green hydrogen storage solutions.

EnergyPathway’s MESH project (Marram Energy Storage Hub), located 11 miles from the Lancashire coast is an ideal location for energy storage development.

MESH is using high-quality geo-storage reservoirs within the region’s gas fields. These reservoirs have high injection and withdrawal rate attributes – ideal for flexible and reliable energy supply to back up intermittent wind, as well as meet volatile demand.

MESH is surrounded by 7-8GW of planned and existing offshore wind power that will be used to provide decarbonised energy to power the facility and store excess wind energy as green hydrogen.

Being close to existing late life gas pipelines, gas processing and offshore transmission lines, MESH can use these to readily connect new energy supply to the UK market, with the high population and industrial demand centres of North-West England nearby.

MESH is also well positioned to integrate with the nearby CCS sequestration reservoirs and the UK’s leading hydrogen hub - HyNet North-West - to bolster decarbonised energy supply for industrial clusters and peaking gas power.

MESH - Major Gas & Green Hydrogen Storage Facility

MESH energy storage infrastructure will provide a secure and reliable supply of natural gas and green hydrogen for over 25 years. It is designed as an integrated zero GHG emission storage facility, fully electrified and powered by the region’s nearby renewable energy.

MESH’s storage capacity of ~14 TWh (~50 bn cubic feet of gas) will be of equivalent size to Centrica’s Rough facility, currently UK’s largest, and it will increase UK’s gas storage capacity by ~50%. It will be able to store an equivalent volume of energy to heat 2.5 million UK homes over winter.

EnergyPathways’ development will use the UK’s oil and gas, and renewable work force and businesses. It comprises a gas storage project of 4 wells with pilot green hydrogen production that is positioned to harness the UK’s excess wind power with scaled up. Gas storage will be developed across two phases with initial formation gas production followed by full gas storage operations.

High Yield Infrastructure Returns

The MESH project schedule is to reach development plan approval and FID in late 2025, with operational revenues starting late 2027. Project development is subject to the award of a UK regulated storage licence.

The investment will benefit from early high cash flows from formation gas production that will finance second phase development.

Positioned for Growth

EnergyPathways has formed a consortium of top tier energy companies to develop the 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.

EnergyPathways has identified 2 further high-quality geo-storage reservoirs, Knox and Lowry, and a geo-salt sequence for energy storage development. These are located nearby to MESH and can be readily integrated to treble MESH’s energy storage capacity. EnergyPathways has requested storage and production licences to be awarded by the regulator for these geological resources.

KeyFacts Energy: Energy Pathways UK country profile   l   KeyFacts Energy: Projects Database