Business
Company Update
Company Update.
About this update from Energypathways Plc
[{"type":"text","content":"\n\n \n \n6 August 2024\n \nEnergyPathways plc\n \n(\"EnergyPathways\" or the \"Company\")\n \nCompany Update\n \nNew government's plan to retain the Decarbonisation Investment Allowance in the Energy Profits Levy an encouraging signal for future investment in UK energy transition projects\n \nEnergyPathways (AIM: EPP), an integrated energy transition company delivering low emission energy solutions which offer energy security to the UK, is pleased to provide an update following the UK government's announcement last week on changes to the Energy Profits Levy (\"EPL\").\n \nLast week's speech to the House of Commons by the Chancellor Rachel Reeves confirmed that the new UK government will follow through with its pledges to increase and extend the EPL as well as remove supportive investment allowances for new oil and gas fields.\n \nThis announcement also confirmed, however, that the EPL's Decarbonisation Investment Allowance will be retained.\n \nThe Company views this as a positive indication of the new Labour government's commitment to support investment in energy transition projects such as EnergyPathways' MESH (Marram Energy Storage Hub) project. The Decarbonisation Investment Allowance, set at 80%, incentivises decarbonisation development in the UK's energy sector, including electrification, powering production facilities with renewable energy, green hydrogen production and reducing greenhouse gas emissions (\"GHGs\") by eliminating or avoiding flaring and venting of GHGs.\n \nEnergyPathways is developing its Marram Gas Field, located in the UK Irish Sea, as a major gas and hydrogen storage facility, to be known as MESH. The facility is being designed as a zero emission, fully electrified facility powered by existing renewable offshore wind. Once operational, MESH will produce the low emission natural gas contained within the Marram Gas Field to displace the UK's high emission LNG imports, which are estimated to have a carbon footprint intensity ten times greater than MESH supply. The gas supplied from MESH may be further decarbonised with green hydrogen production to harness the abundant renewable offshore wind power generation capacity of the UK Irish Sea region.\n \nMESH will transition to full-scale gas storage operations with an estimated storage capacity of ap...