EnergyPathways plc (LSE:EPP) has raised £1.75 million through a share placing with a single institutional investor to support the development of its MESH long-duration energy storage project and provide additional working capital.
The UK energy transition company issued the new shares at 5.75 pence each, with the proceeds intended to fund further project development activities, including the potential acquisition of land, pipelines and technical data associated with MESH.
The placing involves the issue of 30,434,782 new ordinary shares, which are expected to be admitted to trading on AIM on 15 October 2026.
Following admission, EnergyPathways will have 282,134,998 ordinary shares in issue, with the newly issued shares representing approximately 10.8% of the enlarged share capital.
The company also confirmed the closure of its Capital Access Window following completion of the fundraising process. Trading in its existing ordinary shares is scheduled to resume on 13 October 2026.
EnergyPathways said the additional funding will allow it to progress work on MESH, a proposed integrated energy storage development designed to combine compressed air, natural gas and hydrogen storage infrastructure.
The company intends to use part of the proceeds to acquire assets and technical information considered necessary for advancing the project through its development stages.
These acquisitions are intended to reduce project development risks and support future discussions with institutional investors and strategic partners regarding potential financing arrangements.
MESH has been designated as a project of national significance by the UK Government, according to the company.
The proposed development is designed to store surplus electricity generated by wind farms and make energy available when required, using a combination of long-duration storage technologies and associated gas infrastructure.
EnergyPathways is targeting a power capacity of approximately 300 megawatts and an energy storage capacity of 55 gigawatt-hours, with the proposed system designed to provide more than 100 hours of storage.
The company believes the project could contribute to reducing the amount of wind-generated electricity that is curtailed when supply exceeds demand or transmission capacity.
Management also expects the proposed infrastructure to provide additional flexibility to the UK electricity system by enabling stored energy to be dispatched during periods of lower renewable generation.
The project includes plans for natural gas and hydrogen storage facilities, alongside infrastructure intended to support future hydrogen production and energy supply.
EnergyPathways has indicated that hydrogen production could begin around 2029 to 2030, with long-duration energy storage operations potentially commencing during 2031 to 2032.
These timelines remain subject to the completion of development activities, regulatory approvals, government policy arrangements and the availability of project financing.
The company has also outlined the potential for MESH to provide gas storage capacity equivalent to approximately six days of UK national demand.
According to EnergyPathways, the proposed capacity could more than double the UK’s existing gas storage capability, although this remains dependent on the project’s development and eventual implementation.
The company considers the project a potential contributor to UK energy security through additional gas storage capacity and greater flexibility in balancing renewable electricity generation with demand.
The latest fundraising provides capital for the next phase of project development rather than full construction financing, with EnergyPathways continuing to pursue institutional and strategic investment opportunities.
The company will now focus on progressing asset acquisitions, technical work and other development requirements associated with MESH as it prepares for subsequent project stages.
About EnergyPathways plc
EnergyPathways plc is a UK-listed energy transition company focused on developing long-duration energy storage infrastructure and associated natural gas and hydrogen projects.
Its principal development is MESH, an integrated energy storage project intended to combine compressed air energy storage with natural gas and hydrogen infrastructure.
The project is designed to support electricity system flexibility by storing surplus renewable energy and providing dispatchable power during periods when generation from renewable sources is lower.
EnergyPathways is targeting a proposed capacity of 300 MW and 55 GWh, with more than 100 hours of energy storage capability.
The company’s development plans also include hydrogen production and gas storage infrastructure, with future operations dependent on technical development, regulatory approvals and financing.
EnergyPathways is pursuing a phased development strategy involving asset acquisition, engineering studies and engagement with potential institutional and strategic partners.
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