EnergyPathways PLC (AIM: EPP) has had a volatile three months, but its latest update has boosted confidence in the company’s progress this year.
The group highlighted ongoing engagement with the North Sea Transition Authority (NSTA) over its gas storage licence, saying it is considering options such as amending and resubmitting its application. Management expressed optimism that the Marram Energy Storage Hub (MESH) will secure natural gas and hydrogen storage licences, supported by constructive dialogue with both the NSTA and the Department for Energy and Net Zero.
This optimism helped drive the shares 130% higher as investors welcomed progress on MESH, the company’s flagship project in the Irish Sea. Marram is planned as a compressed-air energy storage facility capable of producing and storing hydrogen, aimed at balancing Britain’s grid as renewable power grows.
EnergyPathways has partnered with major contractors to advance the project. Siemens will lead the feasibility study, Costain will examine onshore infrastructure, Zenith Energy will provide well engineering, and a memorandum of understanding with Hazer could add a low-cost clean hydrogen unit.
Chief executive Ben Clube said strong operational progress had been made this year, with strategic agreements signed to support the FEED phase and move the project towards a final investment decision. The company is also seeking a Section 35 direction under the Planning Act 2008 to classify Marram as nationally significant infrastructure, which would streamline the planning process.
Financially, the company reported a pre-tax loss of £607,201 for the first half to June, compared with £550,159 a year earlier, with cash of £695,335. Fundraisings in April (£744,000) and August (£400,000), both backed by directors, have kept operations moving. Clube acknowledged that funding conditions for clean energy projects have become tougher as oil majors scale back investment and borrowing costs rise, but argued this reinforces the need for integrated storage solutions.
While the final investment decision remains a key hurdle, investors see growing potential in MESH as it develops from a speculative concept into a project of national significance. The latest rally in the share price reflects renewed confidence in that journey.
