EPP signs MOU for Hazer technology to decarbonise energy supply in the UK and mitigate Scope 3 emissions

EnergyPathways, an energy transition company, announces a strategic engagement with Hazer Group to use its proprietary hydrogen production technology - globally licensed through Hazer's strategic alliance with KBR, a global engineering leader and technology solutions provider. This technology will be used to develop a bolt-on clean hydrogen facility that will expand the Company's MESH integrated energy storage project.

Under the MOU, the Company secures the support of Hazer as well as exclusive rights to access Hazer's leading technology within the UK for an initial period of 12 months. Hazer and KBR have formed an exclusive, strategic alliance focused on the licensing and deployment of Hazer's technology in the global ammonia and methanol markets.

MOU

Under the terms of the MOU, Hazer and EnergyPathways have agreed to negotiate and finalise a definitive binding agreement for concept engineering studies for a Hazer licensed facility with an indicative hydrogen production capacity of 90MW (20,000 tonne per annum). The planned MESH hydrogen facility will enable the Company to supply decarbonised energy in the UK and mitigate Scope 3 emissions. The MESH hydrogen facility will use feedstocks from the MESH energy storage project and other sources in order to produce and store hydrogen for flexible clean power generation as well as ammonia for use in the UK and for export. The Company is also targeting production of up to 60,000 tonnes per annum of high-quality synthetic graphite.

The scope of the studies will be jointly agreed by the Parties and will leverage the work underway with Hazer's strategic alliance partner KBR for the integration of the Hazer technology with the production of low-carbon ammonia. The studies are to be considered a part of a scoping phase to determine the selected technical design to proceed to detailed Front End Engineering and Design ("FEED"). After completion of the concept engineering studies, the Parties will determine whether they wish to proceed into FEED.

Fees, timelines and other terms and conditions for the completion of the concept engineering studies, FEED and technology licensing will be negotiated between the Parties. Under the MOU, Hazer has granted EnergyPathways certain exclusive rights to use Hazer's licensed technology in the UK for an initial period of 12 months.

MESH Hydrogen Production

The 90MW MESH hydrogen facility supports the UK government's re-industrialisation goals by establishing domestic production of clean ammonia and graphite, reducing reliance on imports for critical commodities. The UK Government's energy policy framework supports methane pyrolysis technology as a viable clean-energy pathway recognising its potential to accelerate the decarbonisation of hard-to-abate sectors and the reduction of scope-3 emissions.

Methane pyrolysis is an eligible technology for financial assistance under the Hydrogen Allocation Round. Hazer's methane pyrolysis technology also meets the required technical readiness level and scalability criteria. Additionally, the UK Government has designated graphite as a critical mineral, noting that the country is currently almost completely reliant on Chinese imports.

The UK Government will introduce the Carbon Border Adjustment Mechanism in 2027, adding a tariff to ammonia imports that will affect UK consumers. The Company aims to competitively produce clean ammonia domestically, supporting UK re-industrialisation and reducing reliance on high-emission, fossil fuel-based ammonia imports.

The MESH hydrogen facility is to be included in a request for a Section 35 Direction for a Development Consent Order under the Planning Act 2008.

Ben Clube EnergyPathways' CEO commented:
"EnergyPathways continues to progress innovative solutions to ensure MESH delivers a combination of commercial and sustainable benefits that support the UK's wider energy policies. The MOU and partnership to use Hazer technology is a significant milestone for the Company's plans to provide the UK with affordable, reliable low-carbon energy and energy products including clean ammonia and graphite.

"The Company plans to develop the large-scale MESH clean hydrogen facility that will bolt onto its MESH integrated storage project, enabling the Company to deliver what we think will be the lowest-cost clean hydrogen production in the UK. The MOU and MESH's hydrogen facility will offer a line of sight to the cost-effective decarbonisation pathway for Scope 3 emissions associated with future UK gas development projects. The project will also produce hydrogen at scale that can further decarbonise MESH's flexible and affordable low-carbon power capability.

"We look forward to progressing the studies associated with this MOU through the scoping phase as we assess feasibility."

Hazer's CEO and MD Glenn Corrie said:
"We are delighted to be working with the experienced team at EnergyPathways to integrate Hazer's technology into the strategic MESH infrastructure project to provide the UK with a secure supply of affordable, low carbon energy and products. We welcome the pragmatic approach from the UK Government that recognises and supports various pathways to achieve the decarbonisation of hard-to-abate sectors, with the inclusion of technology solutions such as Hazer."

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