MOU for clean hydrogen development facility
EPP signs MOU for Hazer technology to decarbonise energy supply in the UK and mitigate Scope 3 emissions
EnergyPathways (AIM: EPP), an energy transition company, has signed a Memorandum of Understanding (MOU) with Hazer Group Ltd, granting exclusive UK rights for 12 months to deploy Hazer’s proprietary methane pyrolysis hydrogen production technology. The technology, globally licensed through Hazer’s strategic alliance with KBR Inc., will support the development of a 90MW clean hydrogen facility as part of EnergyPathways’ MESH integrated energy storage project.
Under the MOU, EnergyPathways and Hazer will jointly scope and finalise a binding agreement to carry out concept engineering studies for a hydrogen production facility capable of generating 20,000 tonnes of hydrogen per year. The project will also target annual output of up to 60,000 tonnes of high-grade synthetic graphite. Feedstock will be sourced from the MESH project and other domestic supplies.
The hydrogen and synthetic graphite produced will support flexible clean power generation, decarbonise hard-to-abate sectors, and reduce Scope 3 emissions. The facility is also intended to supply clean ammonia for UK use and export—offering a competitive domestic alternative as the UK prepares to introduce a Carbon Border Adjustment Mechanism on imported ammonia in 2027.
The concept studies will align with work already underway between Hazer and KBR to integrate the technology into low-carbon ammonia production. Pending results from the concept phase, both parties will decide whether to proceed to Front End Engineering and Design (FEED).
Methane pyrolysis, as used in Hazer’s technology, is supported under the UK Government’s energy policy and eligible for financial backing under the Hydrogen Allocation Round. The project directly supports UK re-industrialisation aims and reduces dependence on imports of critical materials such as ammonia and graphite—both of which are identified as strategic for the UK economy.
The proposed hydrogen facility will be included in a Section 35 Direction request for a Development Consent Order under the Planning Act 2008.
Ben Clube, CEO of EnergyPathways, commented:
“EnergyPathways continues to develop innovative solutions to ensure the MESH project delivers both commercial value and sustainability, aligned with the UK’s broader energy policy objectives. The MOU and partnership with Hazer mark a significant milestone in our ambition to supply the UK with affordable, reliable, low-carbon energy and products—including clean ammonia and graphite.
“Our plan is to build a large-scale, clean hydrogen facility as an extension of the MESH integrated energy storage project. We believe this will enable the delivery of the lowest-cost clean hydrogen production in the UK. The combination of the MOU and the hydrogen facility creates a clear pathway to cost-effective decarbonisation of Scope 3 emissions from future UK gas developments. It will also support the wider decarbonisation of MESH’s flexible, low-carbon power generation capabilities.
“We look forward to advancing the feasibility studies under this MOU as we move through the scoping phase.”
