EnergyPathways plc (AIM: EPP) has signed a collaboration agreement with Finnish technology group Hycamite TCD Technologies to assess low-carbon hydrogen and high-grade graphite production technology for its planned MESH energy storage project in Barrow-in-Furness.
EnergyPathways plans to develop a plant capable of producing around 20,000 tonnes of hydrogen and up to 60,000 tonnes of graphite annually at Associated British Ports’ Port of Barrow.
Initial company scoping estimates indicate potential annual revenues of £90 million to £120 million from approximately 20,000 tonnes each of hydrogen and high-grade graphite, with an indicative EBITDA margin of 30%-40%.
EnergyPathways said there could be a further £20 million to £30 million of annual revenue from lower-grade graphite and residual fines, although this has not been included in the initial economics.
Hycamite’s technology splits methane into hydrogen and solid carbon, potentially producing hydrogen at a cost competitive with blue hydrogen and below current expected UK green hydrogen costs. The resulting high-grade graphite could target battery, aerospace, defence and advanced manufacturing markets.
The company is also assessing whether some of the hydrogen could be combined with nitrogen to produce ammonia for the fertiliser market.
EnergyPathways will evaluate Hycamite alongside technology being assessed with KBR and Hazer Group, with the eventual technology selection dependent partly on government support and future offtake agreements.
The company intends to apply for funding through the UK Government’s Critical Minerals Accelerator programme to support development of the graphite operation.
Chief executive Ben Clube said domestic graphite production could strengthen UK industrial and defence supply chains while creating a significant long-term investment at Barrow.
Investors should note that the £90 million-£120 million revenue and 30%-40% EBITDA margin figures are preliminary company scoping estimates, rather than contracted revenues or completed feasibility-study economics. Development remains subject to technology selection, government support, offtake agreements, approvals and financing, with hydrogen operations currently targeted for 2029-2030.
