EnergyPathways launches work programme after North Sea gas storage licence award
Published: 02:16 01 Jul 2026 EDT
EnergyPathways PLC (AIM:EPP), the UK energy transition company, has begun the work programme for its MESH project after formally accepting a gas storage licence from the North Sea Transition Authority.
The company said a site survey in the East Irish Sea is planned for the third quarter of ths year.
That survey will gather environmental, geological and seabed data to support the regulatory, engineering and subsurface work needed to advance the project.
The licence covers an offshore area that could accommodate up to 60 large-scale salt storage caverns, with potential for multi-terawatt-hour integrated energy storage, subject to consents and financing.
The MESH project has been designated a project of national significance by the UK government.
It is designed to combine compressed air energy storage, natural gas storage that would later transition to hydrogen, and hydrogen production for clean power and industrial use.
The announcement coincided with a policy signal from Ofgem, the energy regulator, on long duration energy storage (LDES), a category covering technologies that can store power for extended periods rather than a few hours.
On 26 June, Ofgem published a provisional list of LDES projects under the first window of its cap and floor scheme, a support mechanism that guarantees investors a minimum revenue while limiting excess returns.
The regulator also confirmed it would proceed with a second window, with further guidance expected by the end of 2026.
EnergyPathways said it was preparing to enter its compressed air storage project into that second window.
Chief executive Ben Clube said the regulator's decision confirmed the central role of LDES in the UK's future energy system and the value of establishing a robust investment framework.
He noted that Ofgem's inclusion of compressed air energy storage, albeit at small-scale, in the first round underlined the technology's contribution alongside other storage methods.
Clube said the LDES element of MESH would be the UK's largest such facility, able to supply power over multiple days rather than the couple of hours typical of batteries.
He added that the directors believe it is well placed to reduce the UK's reliance on expensive gas-fired generation and to help lower electricity prices.
