UK’s ‘largest’ gas and hydrogen energy storage project on track for FID in 2025

England-based energy transition-focused player EnergyPathways has made inroads in making its proposed large-scale offshore wind-powered energy storage project in the East Irish Sea ready for a final investment decision (FID) later this year by securing a license to operate a block encompassing the project and picking a compatriot contractor to handle engineering study for the field development as part of pre-front end engineering and design (FEED) work.

EnergyPathways, which plans to deliver home-grown clean energy to the UK through its project at the Marram gas field, known as the Marram Energy Storage Hub (MESH) project, has received the license operatorship approval from the North Sea Transition Authority (NSTA) for Block 110/4a that includes the company’s MESH project in the East Irish Sea.

The British player sees the approval as a prerequisite for the submission of the field development plan (FDP) and environmental statement (ES), deeming it to be “an important milestone” in the development of its project, which is expected to provide a secure and dependable supply of natural gas and green hydrogen for the UK market for over 20 years. 

Ben Clube, CEO of EnergyPathways, commented: “We are delighted to announce the NSTA’s approval for the licence operatorship for Marram Block 110/4a which is an endorsement by government authorities of our operating capabilities and is a necessary milestone to keep us on track towards our plans to achieve FID on MESH later this year.”

The company has also signed a subsea engineering service agreement with PDi, deciding to entrust the UK-based firm with engineering study support for the Marram field development’s tie-in connection as part of the pre-FEED task list, which follows the recently announced appointment of Wood as project lead engineering partner for MESH to progress the project through the engineering, construction, commissioning, and management phases.

Commenting on the award, Kirstie Langan, PDi’s Global Business Development Director, highlighted: “We are delighted to be working with EnergyPathways as they progress this most exciting gas development and storage energy infrastructure project, which will provide the UK with a secure and flexible supply of low-carbon, low-cost energy.

“Our highly experienced team of pipeline and process engineers, project execution specialists and designers will ensure a robust and pragmatic approach is taken to support this innovative and nationally significant project.“

According to PDi, the Marram underground geo-storage capacity is projected to be up to 50 billion cubic feet (bcf) of gas and is developing integrated energy storage that can provide the UK with a secure, flexible gas supply and leverage the growing value loss from the UK’s excess wind power by utilizing green hydrogen storage solutions.

Derek Grimmer, EnergyPathways’ Chief Operating Officer, remarked: “EnergyPathways is eager to work with companies that are willing to challenge the status quo and work collaboratively with our own specialist team to develop unique and cost-effective solutions for our flagship MESH project.

“After meeting with many supply chain companies that operate in both the subsea and topsides/EPIC space, we selected PDi for their particular skills, experience and track record in pipeline tie-in’s / hot-taps, coupled with their pragmatic approach to engineering solutions and understanding of new technologies that have been developed over recent years.”

These developments come after EnergyPathways formally confirmed its interest and intention to make an application for a gas storage license in an area that includes the project last year and submitted out-of-round license application requests to the NSTA for two gas storage areas that cover the Knox and Lowry gas fields which, like its planned flagship Marram project, are perceived to be development-ready, offering prospective gas storage potential.

The UK player sees a future commercial opportunity to integrate all three potential gas storage projects as the natural follow-on from developing the Marram project into its wider growth plans to realize the potential of turning its storage project into an energy hub to harness the large untapped gas resources, wind energy, and high-quality geo-storage reservoirs of the UK Irish Sea.

Clube added: “We are also pleased to welcome PDi into the MESH consortium, providing support to EnergyPathways as we progress MESH through the pre-FEED process. PDi is a highly experienced UK company that is a leader in the provision of project management with specific subsea capabilities relevant to MESH.

“This winter’s conditions highlight the importance of the need to increase the UK’s natural gas and energy storage capacity to improve its energy security and to alleviate the impact of volatile global energy prices on UK household budgets.”

Designed as a fully decarbonized and electrified zero-emission facility set to be powered by the renewable wind farms of the UK Irish Sea region, MESH is expected to be the UK’s largest natural gas and hydrogen energy storage facility, according to EnergyPathways. This project is anticipated to become operational at the end of 2027.

Given the MESH project’s strategic location in the East Irish Sea region, which lies near one of the major grid constraint boundaries in the UK, the operator is adamant that this, together with six offshore wind farms with 7-8 GW of existing and planned capacity, makes the area an ideal location for energy storage and backup gas power generation.

EnergyPathways believes that its proposed energy hub, which is expected to store an estimated 7 TWh of energy, could be connected to regional CO₂ storage, the HyNet North-West hydrogen hub, and industrial demand centers to produce “net-zero ready” gas power generation. 

Located only 11 miles (17.7 kilometers) from the Lancashire coast, MESH is believed to be in the perfect spot for energy storage not only because it is surrounded by 7-8 GW of existing and planned offshore wind power but also because it is close to late-life reusable gas pipelines and infrastructure and the country’s key carbon capture and storage (CCS) projects.