EnergyPathways took a step closer to delivering the MESH project

EnergyPathways PLC (AIM:EPP) this week was accepted for a gas storage licence at its MESH project in the North Sea and revealed it had begun work programmes to progress the project.

It comes as EnergyPathways advances long-duration energy storage development towards a targeted final investment decision in 2028.

Speaking to Proactive, chief executive Ben Clube said licence acceptance represented a significant milestone, allowing the company to move immediately into the next stage of project development.

Clube said participation in Ofgem's second cap and floor allocation process would represent a critical step in financing the project. He explained that the government-backed mechanism is central to supporting long-duration energy storage developments and said EnergyPathways believes MESH will be highly competitive within the process.

He also pointed to increasing government recognition of long-duration energy storage as an essential component of the UK's evolving electricity system, noting that the launch of a second allocation round reinforces the growing importance of the sector.

Here, we take a closer look at what Ben Clube had to say when he joined the Proactive studio.

Proactive: Hello, you're watching Proactive. I'm joined by Ben Clube, the CEO of EnergyPathways PLC (AIM:EPP). 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.