EnergyPathways (AIM:EPP) plans to raise funds for near-term work on the Marram Energy Storage Hub (MESH), the AIM-listed group's flagship long-duration energy storage project in the East Irish Sea and Barrow-in-Furness.
Proceeds will cover licence work commitments, activities supporting the project's Ofgem long-duration energy storage (LDES) cap and floor submission, and planning and permitting work.
The company previously set up a £15m financing package in April to fund front-end engineering and design (FEED) for MESH, comprising a three-year secured Loan Note allowing up to £5m of drawdowns and a three-year £10m at-the-market equity facility.
MESH has been designated a project of national significance by the UK government and combines compressed air energy storage with natural gas and hydrogen storage, targeting 300 MW of capacity and 55 GWh of storage with duration exceeding 100 hours, which the company says would make it the UK's largest such scheme.
EnergyPathways said hydrogen production is targeted to start in 2029-2030, with LDES operations following in 2031-2032, subject to government policy, approvals and financing.
The company argues MESH's multi-day storage capability can capture wind power currently curtailed on the grid, citing costs to consumers from switching off wind farms that exceeded £1.5bn last year and are projected to top £8bn by 2030 as wind capacity expands.
EnergyPathways appointed Jacobs earlier this month to lead planning, consenting and environmental work for MESH, including support for the Ofgem Cap and Floor submission, with formal confirmation of MESH's eligibility the next milestone in that process.