EnergyPathways PLC (AIM: EPP) said it has launched the licence work programme for its MESH project following the formal award and acceptance of a Gas Storage Licence from the North Sea Transition Authority.
The AIM-listed UK energy transition company said the award marks a significant milestone for MESH, its planned integrated energy storage project in the East Irish Sea. A site survey is now planned for the third quarter of 2026.
The survey is expected to collect environmental, geological and seabed data to support the project’s regulatory, engineering and subsurface workstreams as EnergyPathways moves towards the next stage of development.
The licence covers a substantial offshore area that could support the construction of up to 60 large-scale salt storage caverns. Subject to the necessary consents and financing, the company said the site has the potential to provide multi-terawatt-hour scale integrated energy storage.
MESH has been designated by the UK Government as a project of national significance. The development is expected to combine compressed air energy storage, natural gas storage transitioning to hydrogen storage, and complementary hydrogen production.
EnergyPathways also welcomed Ofgem’s latest update on the long-duration energy storage cap and floor scheme. Ofgem published its minded-to decision list for the first application window on 26 June and confirmed plans to proceed with a second window.
The company said it is preparing to enter the compressed air energy storage element of MESH into Ofgem’s second cap and floor window.
Chief executive Ben Clube said Ofgem’s announcement confirmed the central role of long-duration energy storage in the UK’s future energy system.
He said EnergyPathways continues to advance the MESH project, which the company expects to become the UK’s largest long-duration energy storage facility.
The company said MESH is designed to capture surplus renewable electricity that would otherwise be curtailed and provide multi-day dispatchable power at lower cost and with lower emissions than conventional gas-fired generation.
EnergyPathways also said the project has the potential to more than double the UK’s gas storage capacity, strengthening energy security and reducing reliance on imported gas.
Subject to regulatory approvals and financing, MESH is targeted to enter operation in 2031.
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