EnergyPathways has entered into a collaboration agreement with Hycamite to evaluate the potential use of the latter’s methane splitting technology at a planned graphite and low-carbon hydrogen production plant in Barrow-in-Furness, Cumbria, UK.
The proposed facility is part of EnergyPathways’ Marram Energy Storage Hub (MESH) long-duration energy storage (LDES) project, which aims to combine compressed air energy storage (CAES) with hydrogen production.
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The two companies will work together to assess the commercial feasibility of deploying Hycamite’s process, which converts methane into hydrogen and high-grade graphite.
EnergyPathways said estimates suggest the plant’s hydrogen could be cost-competitive with blue hydrogen and cheaper than the green hydrogen currently available in the UK.
EnergyPathways is also investigating the possibility of using the hydrogen generated to produce ammonia by blending it with nitrogen, targeting sales to the global fertiliser industry.
The UK Government has identified high-grade graphite as a critical mineral used in electric vehicle batteries, aerospace components and defence technologies. It is also a potential export product and a key input for the energy transition.
The company intends to develop a facility capable of producing 20,000 tonnes per annum (tpa) of hydrogen and approximately 60,000tpa of graphite at the Port of Barrow.
Initial economic assessments by EnergyPathways suggest potential combined revenues of £90m ($120m)–£120m annually from sales of hydrogen and high-grade graphite, with earnings before interest, taxes, depreciation and amortisation margins projected between 30% and 40%.
The company estimates that sales of lower-grade graphite could generate an additional £20m–30m in revenue, although these projections are still being assessed and depend on discussions with potential buyers.
The Hycamite collaboration runs alongside EnergyPathways’ existing work with KBR and Hazer Group, which are also evaluating alternative methane-splitting technologies.
The decision on which technology to implement may depend in part on the availability of government funding and the value of future sales agreements.
EnergyPathways plans to apply for support through the UK Government’s Critical Minerals Accelerator programme, which seeks to promote commercialisation of mining and processing technologies for essential minerals.
EnergyPathways CEO Ben Clube said: “We are excited to be working with Hycamite to explore the use of their pioneering and proven technology within our MESH project for high-grade graphite.
“Domestic production of graphite offers huge benefits to the UK, in particular supporting the country’s industrial and defence capabilities, whilst being a sizeable and long-term investment into Barrow’s economy.”
Development of the proposed Barrow plant is subject to further evaluation, approval and potential government support.
Hycamite CEO Matti Malkamäki said: “In addition to producing low-carbon hydrogen, our technology creates an opportunity to produce material with a significantly smaller carbon footprint than before, at a competitive price, and in locations where mined graphite is not currently processed. This is necessary for the sake of the climate, economic growth and security.”
