EnergyPathways, the UK energy transition company, announces that it is fast-tracking development of its low-carbon hydrogen and graphite production facility at Barrow-in-Furness, Cumbria, with the aim of becoming revenue generative by 2029 with a potentially earlier project start-up, subject to further design optimisation and supply chain management.
Alongside the LDES and natural gas/hydrogen storage elements, hydrogen, graphite and ammonia production (together 'Hydrogen Industries') is the third pillar of the Company's integrated MESH project.
Commercialisation of the Hydrogen Industries pillar is not dependent on Government commercial support and involves minimal regulatory process. Land has been identified, existing gas and power network connections are in place, and engineering work is progressing with the Company's two leading technology partners, Hazer Group (with KBR) and Hycamite TCD Technologies.
Graphite: a critical mineral and a Government priority
The UK Government has identified graphite as a critical and growth mineral, essential to national security, industrial strategy and the energy transition. The UK currently imports all of its graphite, and there is a growing need for indigenously produced graphite to mitigate against global geo-political shocks.
The Barrow facility will deploy methane splitting technology, which cracks natural gas into low-carbon hydrogen and solid graphitic carbon. The carbon is captured as graphite rather than released as CO2, creating a new domestic source of a strategically important material.
Strong market dynamics across multiple grades
The Company's analysis confirms established markets for graphite across a range of grades. This provides strong market dynamics and a clear path to monetisation from the outset.
A two-phase graphite strategy
- Phase 1 - establish EnergyPathways as a major graphite supplier: the Company has identified its initial markets as tyre manufacturing, metallurgical industries, and the blending of graphite into concrete and asphalt. These industries use carbon on a large scale, and EnergyPathways' graphite would offer them a route to decarbonisation; and
- Phase 2 - move up the value chain: conversion of graphitic carbon into high-grade graphite, including graphite suitable for use in electric vehicle batteries and other advanced applications.
Built for fast-track delivery
- Land: a site has been identified in Barrow capable of hosting a 20,000 tonne per annum plant, with potential for future expansion. Negotiations regarding its purchase are under way;
- Grid connections: existing connections into the gas and power networks will enable fast-track development. The Company is in direct dialogue regarding the option to secure a prioritised grid connection; and
- No subsidy dependence: with no Government commercial support required and minimal regulatory process, EnergyPathways has identified a route to early revenues by 2029. The Company will continue to look at potential grants that could be utilised for further development work on higher qualities of graphite, which naturally attract better prices and margins.
Commenting on the fast-track project, Ben Clube, CEO of EnergyPathways, said:
"We have a real opportunity to accelerate this project and become revenue generative by 2029 if not earlier, underpinning the Company with strong cash flows at attractive EBITDA margins. We are actively accelerating this aspect of MESH, with multiple workstreams ongoing, including the acquisition or lease of suitable land in Barrow and engagement regarding connections into the gas and power grids. The economics of the Hydrogen Industries component of MESH are compelling on a standalone basis. We are progressing engagement with offtake clients to underpin the economics and with strategic investors, as well as private capital, to fund the fast-tracked development.
'Graphite is a critical mineral the UK cannot currently produce for itself, and our work shows strong demand across multiple grades. Our focus now is on locking in offtake, completing engineering and securing the funding to deliver early cash flow for MESH and long-term investment for Barrow. We look forward to updating the market as we complete the various milestones on our route to commercialisation.'
About MESH: https://energypathways.uk/mesh
Source: EnergyPathways
