EnergyPathways (AIM:EPP) has raised £1.75m through a placing with a single institutional investor, the AIM-listed integrated energy transition company said, with the funds earmarked to accelerate its Marram Energy Storage Hub (MESH) project and provide working capital.
The company intends to use the proceeds to acquire key assets including land, existing pipelines and technical data, steps it says will further de-risk MESH for institutional and strategic partner investment, discussions on which it says are already under way.
MESH is EnergyPathways' flagship project in the East Irish Sea and at Barrow-in-Furness, an integrated scheme combining compressed-air energy storage, gas storage and a transition to hydrogen storage and low-carbon hydrogen production, which the UK government designated nationally significant last year.
The placing follows the company's £15m financing package agreed in April to fund front-end engineering and design (FEED) work on the project's compressed-air energy storage element, of which it had drawn down £2m of a £5m loan note and issued 6.94m shares worth 2.99% of its issued capital under an at-the-market facility, according to its most recent progress update.
That update, published alongside half-year results in September, also disclosed a loss of £1.95m for the six months to 30 June, compared with a loss of £607,201 a year earlier and above the £1.66m loss reported for the whole of 2025.
Following admission of the new shares, EnergyPathways' issued ordinary share capital will total 282.13m shares, which also represents the company's total voting rights.
Trading in the company's shares, which had been suspended, is being restored alongside admission of the new stock.
The company said it remains in active discussions with institutional and strategic partners as it works toward a final investment decision on MESH targeted for 2028.