EnergyPathways PLC (AIM:EPP) has launched front-end engineering and design for what it expects to be the world’s largest compressed air energy storage project, backed by a £15 million financing agreement.
The AIM-listed energy transition company said pre-FEED work carried out with Siemens Energy had confirmed the commerciality and economic viability of the MESH CAES project, which is planned for the East Irish Sea and Barrow-in-Furness.
The facility is expected to have around 300 MW of power capacity and 55.2 GWh of storage capacity, giving it more than seven days of sustained power output. EnergyPathways said the project would use surplus grid and offshore wind power to compress air into large offshore salt caverns, before releasing it to generate dispatchable power when needed.
Funding for FEED will come through a £15 million agreement with a global institutional investor, made up of a secured £5 million loan note and a £10 million at-the-market equity placing facility.
Chief executive Ben Clube said the project would create infrastructure “to store and redistribute our nation's growing surplus of renewable energy” during periods of low wind, electricity scarcity or high demand.
"I am delighted to kick off the FEED programme for our MESH CAES project. This project, when brought online, will be an invaluable asset for the UK's electricity network and will help deliver the objective for a clean energy system," Clube said.
"Importantly, we expect UK consumers will see the benefits of our CAES project through lower power bills. By harnessing Britain's abundant wasted wind power, it can be used to produce low-cost dispatchable power to reduce our dependency on expensive gas imports for our power supply."