Business
Government update on Climate Change Levy
Government update on Climate Change Levy.
About this update from Energypathways Plc
[{"type":"text","content":"\n\n3 April 2025\nEnergyPathways plc\n \n(\"EnergyPathways\" or the \"Company\")\n \nUK government to remove Climate Change Levy (CCL) costs from electrolytic hydrogen production\n \nEnergyPathways (AIM: EPP), an energy transition company, notes with interest the update provided by the UK government within the Spring Statement 2025, regarding the removal of Climate Change Levy (CCL) costs from electricity used in electrolysis to produce hydrogen. This measure supports the growth of low carbon electrolytic hydrogen production in the UK, which benefits EnergyPathways' wider hydrogen ambitions.\n \nEnergyPathways' Planned MESH Project\n \nEnergyPathways' planned MESH project (\"MESH\" or the \"Project\") is an integrated energy storage hub with an estimated storage capacity of up to 20TWh, equivalent to 7% of the UK's current annual electricity demand.\n \nThe Project is expected to include the development of a large-scale salt cavern hydrogen storage facility (to be known as MESH-H2) of up to 640 MW, with total storage capacity of 2.8 TWh. The hydrogen storage facility will be integrated with the wider MESH project and linked to regional offshore wind to store and supply decarbonised energy. MESH-H2 will potentially be the UK's largest hydrogen storage facility.\n \nThe MESH project will also include the development of a 400 MW compressed air Long Duration Energy Storage (LDES) facility, providing a multi-day clean power supply. Once developed, it will have the potential to be the largest LDES facility in Europe. MESH can be enhanced to provide up to 700 MW of low-carbon flexible power through a highly flexible future-proofed hybrid compressed air storage system (H-CAES) that can be transitioned to carbon free hydrogen based power.\n \nEnergyPathways plans to submit an application in the UK Government's planned Hydrogen Storage Allocation Round and believes the MESH H2 design has competitive attributes that can attract Government support.\n \nEnergyPathways has also submitted a gas storage licence application to the Government regulator in relation to both hydrogen and natural gas storage development and operations. If successful, EnergyPathways will further progress the MESH development.\n \nDepartment of Energy Security and Net Zero (DESNZ) Consultation:\n \nIn its Spring St...