EnergyPathways puts Finnish hydrogen firm Hycamit under review for MESH storage project
A dual hydrogen-graphite production model could generate £90-120 million annually for the East Irish Sea project, pending commercial viability findings.
EnergyPathways said on Thursday (2026-09-17) it would evaluate Finnish firm Hycamit's hydrogen and graphite production capabilities for the Marram Energy Storage Hub, known as MESH, off the East Irish Sea. The company told shareholders it was investigating the commercial viability of what it described as Hycamit's "proven technology," a phrase that stops well short of endorsement at this point in the review.3
The financial case rests on a dual-output model. EnergyPathways told shareholders revenues of between £90 million and £120 million per year are forecast if MESH produces 20,000 tonnes each of hydrogen and graphite annually, described as within the project's stated ambitions.3 That is a wide band. Hitting the upper end requires both production streams to operate at scale simultaneously, then find buyers in markets where pricing is neither liquid nor transparent.3
The Hycamit announcement came nine days after EnergyPathways confirmed, on Tuesday (2026-09-08), that it had selected engineering firm Jacobs to manage planning, consenting, and submission to Ofgem's forthcoming long-duration energy storage cap and floor round.2 That regulatory mechanism provides a revenue floor when market prices fall short of a threshold, shielding investors from the low-price scenarios that have historically made large storage projects difficult to finance through equity and debt alone.2
The sequence of moves suggests EnergyPathways is advancing MESH toward a final investment decision, with the Ofgem submission deadline imposing a pacing constraint on the broader development schedule.2,3
The choice of a Finnish technology partner carries a pricing dimension. Finland's day-ahead electricity settled at €26.43 per megawatt-hour on 21 September, well below hub prices elsewhere in Europe, a gap that matters for electrolysis-based production where power cost is typically the largest single input expense. EnergyPathways has not disclosed the specifics of Hycamit's production method in its shareholder materials.3 The evaluation builds on work already under way, EnergyPathways told shareholders, suggesting prior engagement with the Finnish firm rather than a first contact; still, "will investigate" is the language of a process opening, not one nearing a conclusion. A negative finding forces a rethink.3
The graphite stream is the less familiar half of the revenue model. Hydrogen can be sold to industrial buyers under long-term bilateral agreements, a structure debt providers recognise and can underwrite.3 Graphite pricing, tied to battery supply chains and anode materials demand, follows electric vehicle production cycles — introducing a second commodity exposure with a distinct risk profile for any lender or equity partner evaluating MESH.3
The Ofgem cap and floor mechanism is where those two risks could be partially neutralised. If approved, the floor would underpin baseline revenues regardless of commodity price movements in either market, making the project's debt service more predictable. Getting the submission timing right is as important to MESH's progress as finding the right production technology.2
Researchers in the United States, Canada, and Australia are mapping naturally occurring geological hydrogen deposits, which scientists and start-ups believe could become a meaningful supply source if proven commercially viable.1 EnergyPathways has not indicated how this longer-term supply picture factors into the Hycamit commercial review.
EnergyPathways has not disclosed a timeline for completing the Hycamit due diligence. If the technology review runs past the Ofgem submission window, MESH could be deferred to a later intake of the cap and floor programme, setting back financing discussions and leaving the project's combined hydrogen-and-graphite revenue thesis unresolved for another year or more.2,3