Ben Clube on EnergyPathways' MESH milestones - ICYMI

EnergyPathways PLC (AIM:EPP) CEO Ben Clube talked with Proactive about the company's acceptance of the MESH gas storage licence, the launch of its work programme and the next steps towards bringing the long-duration energy storage project into commercial operation.

Clube described the licence acceptance as a significant milestone, confirming that the company is moving immediately into the work programme as it targets a final investment decision in 2028. He also discussed EnergyPathways' intention to participate in Ofgem's second cap and floor allocation process, describing it as a critical government support mechanism for financing the MESH project.

The interview explored the growing importance of long-duration energy storage within the UK's energy transition. Clube explained how increasing renewable generation creates greater intermittency in the electricity system and highlighted the role storage can play in capturing surplus renewable energy that would otherwise be curtailed before supplying it back to the grid when demand exceeds renewable generation.

Unlike conventional battery storage, which typically provides around one to two hours of electricity, MESH is designed to deliver multi-day energy storage. According to Clube, this longer duration enables the project to compete directly with gas-fired power generation during periods when renewable energy is unavailable.

As Clube explained, "We see ourselves as a game changer to displacing the UK's overreliance on expensive gas." He added that the company believes it can provide lower-cost power into that market while supporting the UK's transition towards a more resilient and renewable-led electricity system.

Looking ahead, Clube said investors should watch for progress on the cap and floor process, engineering studies, project partner discussions and the various regulatory and consent milestones as EnergyPathways advances MESH towards its target of commercial operations in 2031.

Proactive: Ben, good morning. You've just accepted the gas storage licence and launched the work programme. How significant is this moment for MESH?

Ben Clube: Good morning. It's a very significant milestone for the MESH project. We're launching straight into our work programme following acceptance of the licence and moving full steam ahead towards our target of reaching final investment decision in 2028.

Proactive: Ofgem has confirmed a second round of its long-duration energy storage scheme and you're entering MESH into that window. What does that support mean for financing the project?

Ben Clube: It's a critical milestone in our journey. Participation in Ofgem's cap and floor second-round process is a key government support mechanism for the MESH project and we believe we'll be highly competitive. Long-duration energy storage is moving rapidly up the priority list within the UK's future energy mix, as demonstrated by the first-round shortlisted projects and the decision to proceed with a second round. It's confirmation of what we expected — that long-duration energy storage is a key enabler of the UK's energy transition.

Proactive: You say MESH can supply multi-day power compared with batteries providing only a couple of hours. How does that change the economics?

Ben Clube: That's the key feature of MESH and how it fits into the UK's energy transition. As renewable generation, particularly wind, continues to expand, intermittency becomes a bigger challenge. When there's excess wind or solar generation, renewable energy is often curtailed and generators are paid to switch off. Storage provides the solution by capturing that otherwise wasted renewable energy and dispatching it when renewable generation can't meet demand.

What MESH offers is duration. Typical batteries provide around one to two hours of storage, with the UK average around 1.5 hours. Multi-day storage allows us to remain in the market much longer during periods when renewables aren't available. Today that demand is largely met by gas-fired power generation. We believe we can compete very effectively in that market at a lower cost, helping reduce the UK's reliance on expensive gas-fired generation.

Proactive: You're targeting commercial operations in 2031. What milestones should investors watch between now and then?

Ben Clube: Key milestones include participation in the cap and floor programme, bringing a project partner into MESH, completing engineering studies and progressing the necessary consent processes. Investors can expect a steady flow of news as these milestones are achieved and as we move through government approval processes.

Proactive: Ben, I hope you'll continue to keep us updated with your progress. Thank you very much for your time today.