© Ryan Duff/DCT Media 
EnergyPathways chief executive Ben Clube has called for speedier regulatory approvals for energy storage projects as he warned that investors won’t hang around forever.
The Worthing-headquartered firm is advancing the Marram Energy Storage Hub (MESH) project off the coast of Lancashire.
The MESH plans could store up to 50 billion cubic feet of natural gas and green hydrogen stored across four offshore salt caverns, powered by offshore wind.
But Clube has expressed concern that investors are hesitant to invest in UK large-scale energy storage projects amid uncertainty over Westminster policy.
Clube has written to energy security and net zero secretary Ed Miliband, GB Energy chairman Juergen Maier, and more calling for change to support the UK’s energy market.
© Supplied by EnergyPathwaysHe called on the Labour government to speed up bureaucratic processes to ensure “critical projects” like MESH can attract investment and proceed to construction.
Clube’s letter came in response to one from Miliband, Maier and other UK government officials addressed to renewable energy developers and investor.
The “Build it in Britain” letter aimed to showcase the moves being made by government to support its clean power by 2030 target.
Clube wrote: “With time running short to meet Clean Energy 2030 targets, we call on the government to speed up regulatory approvals so that private sector partners and investors can mobilize and advance critical projects like MESH to achieve its net zero ambitions.”
Uncertainty continues to bite UK energy sector
EnergyPathways moved to expedite the MESH project towards the end of last year, citing changes to the regulatory and fiscal environment in the UK under the Labour government.
The Government letter from April read: “We know that uncertain trading conditions mean that companies are thinking hard about where to invest their resources.
“Collectively and separately, we stand ready to work with your business to explain our policy framework, the clear action being taken to deliver on this framework and the institutions we have put in place to accelerate private investment into clean energy across the UK.”
© Supplied by James Veysey / ShuttThe EnergyPathways boss called for support for projects like his to make a step change in the energy transition while delivering energy security in the UK.
“We believe our proposed MESH integrated energy storage project is an important piece in helping solve Britian’s net zero puzzle,” Clube added.
“It can play a vital role in the nation’s energy security and reducing the burden of net zero costs on consumer energy bills.”
What is MESH?
The MESH project aims to store natural gas and hydrogen in the Irish Sea while producing gas from the Marram Field.
The project aims to provide long-term low-carbon energy supply and storage and will be completely powered with offshore wind turbines, meaning it stands to benefit from the decarbonisation investment allowance.
Just last week, EnergyPathways announced plans to incorporate a compressed air energy storage (CAES) system within the MESH development.
However, the production licence for the space lapsed recently as activity at the site was not delivered on time.
© Supplied by EnergyPathwaysIt was awarded a Licence Operatorship for hydrocarbon activities on Block 110/4a in January.
Late last year, the firm said that it would be focusing more heavily on developing its storage operations in the UK Irish Sea over its Marram gas project.
Clube has previously shared his belief that natural gas should be used throughout the energy transition.
He previously told Energy Voice: “Gas is not a bridging or a transition fuel, it is the destination and in the future of the UK, gas will continue to be – in our opinion – a major energy source.”
A Rough time for gas storage highlights MESH importance
The push for gas storge comes amid concerns of the future of Centrica’s Rough storage site.
Last month, Centrica warned that it may shut down the site, which is the UK’s largest gas storage facility, if it doesn’t receive additional government support.
Soon after Centrica’s threats of closing its storage site, a Scottish Government committee heard that the UK may need to build 10 times the capacity of Rough offshore gas storage facility to meet its future hydrogen needs.
University of Edinburgh professor Stuart Hazeldine told the Net Zero, Energy and Transport Committee that the UK could effectively need to build “another 20 salt caverns” onshore to provide sufficient hydrogen storage.
© Centrica StorageIn his letter to Westminster, Clube highlighted the importance of securing a future for MESH at a time when the future of Rough is uncertain.
“Rough’s closure threatens not just the UK’s energy security, but also government’s net zero plans, which rely heavily on a secure and reliable source of gas for its backup power, when wind is not available,” The EnergyPathways boss explained.
He warned a post-Rough UK would have “only 6 days of stored gas supply”, adding that the country’s current storage capacity is “already a mere fraction of that of most European countries”.
UK ‘wasting its abundant wind energy’ while bills soar
The EnergyPathways boss also took aim at renewable energy subsidies that are handed out to UK operators by Westminster, a move which he sees as being responsible for the country’s high energy bills.
“The UK is already wasting its abundant wind energy on a regular basis under subsidised Contracts for Difference arrangements with wind developers,” Clube wrote.
“Without mitigation the cost to consumers of this wasted wind, or ‘curtailments’, is expected to surge to at least £6bn by 2030.”
The government letter came as Westminster announced £300 million public investment in domestic offshore wind supply chains, through the recently established publicly owned firm GB Energy.
© Supplied by House of Commons.Miliband and co added: “This will deploy grant funding to key supply chain projects across the fixed and floating offshore wind sector, supporting the domestic manufacture of critical and innovative components.”
Clube responded: “MESH can help cut the subsidy costs being passed on to consumer power bills by: reducing costs of excess wind and curtailments; reducing the need for expensive network upgrades; decreasing our reliance on costly standby gas-fired capacity; and limiting the buildout of high-cost separate decarbonised backup power.”
The EnergyPathways chief executive argued that the “huge spending” forecast for the government’s plans “averaging £40bn or more annually” could result in consumers footing the bill
“Much of this investment is dependent on subsidy and there is a risk these costs could be passed on to consumers’ bills,” Clube wrote.
Time for ‘common-sense storage solutions’
He said that to meet these goals, “pragmatic, common-sense storage solutions like MESH are needed,” and that as the UK is set to import a growing percentage of its gas “a resilient gas supply chain will be crucial to prop up our energy security”.
“The integrated nature of MESH’s energy storage facilities allows it to produce low-carbon, dispatchable power over multi-day periods to back up wind power,” Clube explained.
“The cost of this low-carbon flexible power solution will be highly competitive in comparison to CCS-linked gas power, battery energy storage systems, and hydrogen to power solutions.”
© Supplied by EnergyPathwaysHe added that UK financial backers have expressed an interest in the project, resulting in MESH “not requiring government subsidy to progress”.
On the government’s recent wind investment announcements, the Westminster letter explained: “A key goal will be to crowd in private sector investment to deliver maximum impact.”
Those behind the government letter added: “In all of us, you will find the most willing partners, united in our belief that in this uncertain world, the UK represents the best place to do business and to capitalise on the enormous opportunities offered by the clean energy transition and our modern industrial strategy.”
Creating a ‘boost’ in investor confidence
Clube wrote in response that MESH stands to create jobs by working with local suppliers and “boost investor confidence”.
He commented: “Besides making a material contribution to the country’s looming 2030 clean energy targets, the project is well positioned to help reignite employment in the UK’s offshore sector and boost investor confidence in the UK’s energy transition.”
It is understood that industry big names have shown an interest in backing MESH, however, they are holding off until the project sees a clear path forward.
Aberdeen headquartered service company Wood was awarded an engineering contract by EnergyPathways late last year.
The firm is set to provide pre-front end engineering and design (pre-FEED) and FEED work on the gas storage project.
The company and its technical advisers stated that it has progressed in-house concept engineering studies to add a hybrid compressed air energy storage component (H-CAES) to MESH.
