Aberdeen headquartered service company Wood (LON:WG) has picked up a contract with EnergyPathways (LON:EPP) for engineering work on its Marram Energy Storage Hub (MESH) project.
The firm is set to provide pre-front end engineering and design (pre-FEED) and FEED work on the gas storage project.
EnergyPathways’ MESH scheme, in the Irish Sea will provide long term clean energy supply and storage and will be completely powered with UK renewable energy and stand to benefit from the decarbonisation investment allowance.
MESH is a gas and hydrogen storage facility which is set to come from the Marram gas field. Located off the Lancashire coast, MESH is being developed alongside EnergyPathways’ 35bcf Marram gas field.
Ben Clube, CEO of EnergyPathways said: “This marks another significant milestone for EnergyPathways as it continues to build its leading position in the UK’s energy transition and making a meaningful contribution towards the UK’s energy security, net zero objectives and transitioning British jobs for the future.”
The firm said it is targeting a final investment decision on the project “at the end of 2025”.
© Supplied by EnergyPathwaysWood is set to kick off pre-FEED operation next month and the firm said the work will not create any new jobs and will be carried out by “existing engineering teams”.
Clube added: “Wood will bring a wealth of energy transition engineering consultancy capability, coupled with strong project management skills to help us deliver our integrated energy infrastructure project.”
The storage facility will have a capacity of around 50bcf of gas once completed and will be used to store natural gas and hydrogen to supply the UK market.
Martin Simmonite, senior vice president of operations, UK at Wood commented: “We will work with our new partner to deliver this innovative project by applying Wood’s full life-cycle engineering and operations capabilities and, ultimately, contribute to the UK’s net zero progress.”
EnergyPathways said it would fund the work with the drawdown of £100,000 from a loan facility although this is “expected to be paid by the end of the year”.
The operator said the withdrawal satisfied the “minimum drawdown amount” agreed on the £5.1-million loan for the MESH project agreed with Luxembourg-based corporate financing platform GGAF in October.
EnergyPathways announced that interest on the loan is charged on drawn down amounts at a fixed rate of 12.5% per annum and is payable monthly.
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