EnergyPathways (AIM:EPP) has signed a collaboration agreement with Finland's Hycamite TCD Technologies to assess its graphite and low-carbon hydrogen production technology for the UK energy transition company's planned hydrogen plant.
The plant forms part of EnergyPathways' MESH energy storage project spanning the East Irish Sea and Barrow-in-Furness, Cumbria.
Both parties will evaluate the commercial viability of Hycamite's methane splitting and carbon processing technology, which the company says is technically proven and capable of producing hydrogen at a cost competitive with blue hydrogen and cheaper than green hydrogen currently expected in the UK.
The Hycamite tie-up runs alongside EnergyPathways' existing collaboration with KBR and Hazer Group, which offers an alternative methane splitting route to low-cost hydrogen and graphite.
EnergyPathways plans a 20,000 tonne per annum hydrogen plant and a roughly 60,000 tonne per annum graphite plant at ABP's Port of Barrow.
Initial scoping economics point to annual revenues of £90 million to £120 million from selling roughly 20,000 tonnes each of hydrogen and high-grade graphite, with an EBITDA margin of 30% to 40%, plus a further £20 million to £30 million upside from lower-grade graphite fines not yet included in those figures.
The UK government has designated graphite a critical growth mineral, used in EV batteries, fuel cells, aerospace and defence manufacturing.
EnergyPathways intends to apply for the government's Critical Minerals Accelerator grant programme, launched in August, to support the production plans.
"Domestic production of graphite offers huge benefits to the UK, in particular supporting the country's industrial and defence capabilities," said chief executive Ben Clube.
The choice of technology will depend on grant support secured and the commercial terms achieved in future offtake contracts.
News Intelligence what this means for the company
EnergyPathways has signed a collaboration agreement with Hycamite to evaluate the Finnish firm's methane-splitting technology for hydrogen and graphite production at its planned Barrow-in-Furness plant, as part of the broader MESH energy storage project. The deal is an assessment phase running alongside an existing partnership with KBR and Hazer Group on an alternative methane-splitting route; the choice of technology will depend on grant funding secured and offtake contract terms. The project targets 20,000 tonnes per annum hydrogen and 60,000 tonnes per annum graphite, with scoping economics pointing to £90–120 million annual revenue and 30–40% EBITDA margins.
The Hycamite collaboration adds a second technical pathway to the hydrogen and graphite production leg of MESH, reducing single-technology risk but also signalling that neither route is yet locked in. Execution now hinges on securing Critical Minerals Accelerator grant support and negotiating offtake contracts—both remain uncertain.
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