EnergyPathways CEO on Advancing World’s Largest CAES Project After FEED Milestone

Why It Matters

The advancement of the world’s largest CAES project provides a scalable solution for the UK’s renewable‑energy surplus, offering investors a high‑value, low‑dilution opportunity while supporting national net‑zero targets.

Key Takeaways

• FEED milestone confirms commercial and technical viability of CAES project.
• EnergyPathways secured £50m minimally dilutive financing for development up to 2028.
• UK government designated project as national significance, expediting consent.
• Siemens Energy endorsed design, boosting investor confidence in storage technology.
• Barrow-in-Furness site gains local support, aligning with sustainable industry park.

Summary

EnergyPathways PLC’s chief executive Ben Clube announced that the company has moved its world‑largest compressed‑air energy storage (CAES) project into the front‑end engineering and design (FEED) phase, marking a critical step toward a final investment decision (FID) slated for 2028. The milestone validates the project’s commercial and technical credentials and positions it as a viable, bankable investment.

The company highlighted several key developments: Siemens Energy completed pre‑FEED studies and affirmed the design’s commercial viability; the UK government has classified the project as a “project of national significance,” accelerating its path to a development consent order; and EnergyPathways secured £50 million of minimally dilutive financing, comprising a £5 million convertible loan and an at‑the‑market equity facility. Importantly, the CAES initiative is distinct from EnergyPathways’ separate gas‑storage venture, removing reliance on a gas‑storage licence.

Clube emphasized that “the commercial and technical credentials of the project are strong,” and noted strong local backing in Barrow‑in‑Furness, where the on‑shore component will sit within a broader sustainable industry park. The financing structure, with a premium‑linked convertible loan, aims to limit shareholder dilution while funding FEED activities, contractor appointments, and environmental surveys.

The project’s progress underscores the growing demand for long‑duration energy storage to absorb excess renewable generation in the UK, a critical element of the nation’s net‑zero roadmap. Successful execution could unlock a new asset class for investors and demonstrate the scalability of CAES technology for future decarbonisation efforts.

Original Description

EnergyPathways PLC (AIM:EPP) CEO Ben Clube joined Proactive to discuss a landmark milestone — pre-FEED studies completed with Siemens Energy have independently confirmed the commercial and technical viability of the company's CAES project, the planned world's largest compressed air energy storage facility.

Clube explained the project captures wasted wind power and stores it in offshore salt caverns, releasing it as dispatchable electricity when needed — a large-scale solution to one of the UK grid's biggest challenges. The project, already designated nationally significant, is now advancing into FEED ahead of a final investment decision, funded by a £15 million minimally dilutive financing facility.

Crucially, the CAES project proceeds independently of the gas storage licence application. Upcoming milestones include contractor appointments, regulatory updates and further financing activity.

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