EnergyPathways plc (AIM: EPP) has signed Heads of Terms to acquire strategically located land at Barrow-in-Furness, Cumbria, providing a potential pipeline connection for its MESH energy storage project and supporting plans to accelerate hydrogen and graphite production.
The UK energy transition company said the proposed acquisition would establish a key infrastructure corridor linking its offshore Irish Sea energy storage development with existing gas pipeline networks.
MESH is designed to combine large-scale natural gas and hydrogen storage with long-duration electricity storage, flexible power generation and hydrogen production.
The land agreement represents an important step towards developing hydrogen and natural gas transportation infrastructure, potentially allowing EnergyPathways to reuse existing pipeline assets rather than constructing an entirely new network.
The Heads of Terms are not yet binding, with both parties progressing towards a definitive agreement. The purchase price has not been disclosed, and completion is expected within approximately one month, subject to due diligence and customary conditions.
EnergyPathways is also progressing discussions with National Gas Transmission over a connection to the UK’s National Transmission System at Barrow-in-Furness.
Separately, the company is engaging with an existing pipeline owner regarding the potential reuse of strategically important infrastructure, which could help reduce development costs and accelerate delivery.
The proposed land acquisition would also support the company’s hydrogen industries business, which is targeting first revenues from hydrogen and graphite production as early as 2029–2030.
This element of MESH is being advanced as a potentially standalone commercial operation, providing an opportunity to generate revenue while the wider energy storage project progresses through development and financing.
Chief Executive Ben Clube described the proposed purchase as a major milestone, highlighting the land’s strategic importance in connecting MESH to existing energy infrastructure.
He said the site would complement the company’s plans with Associated British Ports at Barrow and provide greater flexibility for hydrogen and natural gas transportation.
The infrastructure corridor is intended to support several elements of MESH, including compressed-air electricity storage, gas and hydrogen storage, low-carbon flexible power generation and hydrogen production.
EnergyPathways also highlighted recent UK Government energy policy announcements, including the approval of the Jackdaw gas field and proposed measures supporting energy infrastructure investment.
The company believes these developments, alongside the Government’s broader approach to energy security and the North Sea transition, strengthen the policy environment for projects combining conventional gas infrastructure with low-carbon technologies.
Management considers energy storage increasingly important to Britain’s energy security as the electricity system incorporates more renewable generation and seeks to manage fluctuations in supply and demand.
For investors, the Barrow land agreement represents a potential infrastructure milestone for MESH, helping establish a route for pipeline connections while supporting the company’s plans to commercialise hydrogen and graphite production.
However, the land purchase remains conditional, and the proposed pipeline arrangements, grid connections and wider development plans have not yet been finalised.
The targeted 2029–2030 revenue timetable will also depend on completing engineering, securing financing, obtaining the necessary approvals and establishing commercial operations.
Attention will now turn to completion of the land acquisition, progress on pipeline and National Gas Transmission connections, and the remaining milestones towards a Final Investment Decision, as EnergyPathways advances its integrated energy storage and hydrogen development strategy.
