EnergyPathways announces that Siemens Energy Limited ("Siemens Energy") has been engaged to carry out a feasibility assessment in support of the Company's planned large-scale integrated energy storage and decarbonisation project, MESH.

The overall objective of Siemens Energy's feasibility assessment is to identify the optimal technical, financial and business solutions for the MESH integrated energy system that is expected to provide low to zero-carbon dispatchable electricity to the grid, enhancing the UK's energy security and flexibility ("Feasibility Assessment"). The Feasibility Assessment will achieve this through a comprehensive assessment of system-wide UK energy market requirements and viable technological pathways. The Feasibility Assessment will establish a foundation for the MESH integrated energy system solution that can be progressed to detailed design, modelling and optimisation.

The engagement with Siemens Energy provides the MESH project with access to leading edge expertise, in particular, in LDES compressed air systems, electrical gas compression systems and, critically, a deep understanding of integrated energy systems. These technologies will be at the heart of the UK's smart grid revolution as it transitions to a renewables-dominated power system.

The Siemens Energy engagement is an important milestone in establishing MESH as a significant energy infrastructure asset for the UK's energy future, and for the Company to become a leader in the deployment of grid integrated systems.

Ben Clube, CEO of EnergyPathways said:

"We're pleased to have entered into this engagement with Siemens Energy who are truly market leaders in innovative energy solutions and a global dominant force in sustainable energy transition. This represents yet another engagement by EnergyPathways with a Tier-1 energy company demonstrating the Company's commitment to working with the leaders in the energy transition, as we seek to deliver a compelling economic and technical energy solution for the UK.

"The UK government, in our view correctly, seeks to take a total energy system approach to fulfil the nation's ambitions to transition to net zero and establishing a renewables dominated energy system. With the National Energy System Operator (NESO) formed to lead this approach, it has already flagged that a clear priority for the UKis the need for more energy storage for it to meetits ambitious energy transition targets.

"The Siemens Energy engagement will ensure the MESH project optimally joins up UK energy assets so that the MESH LDES and gas storage systems efficiently harnesses curtailed offshore wind power and converts it into low carbon flexible power supply when needed by consumers. It will also ensure MESH provides a secure and reliable supply of stored natural gas that will be critical for hydrogen production and backup decarbonised dispatchable power supply for when the wind does not blow. The engagement will also help future proof the MESH project and to become the UK's largest hydrogen storage facility and provide the UK with material bolt on hydrogen production capability."

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.

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