The United Kingdom’s energy landscape is undergoing a dramatic transformation, marked by both bold innovation and daunting regulatory hurdles. In the past week alone, two major stories have emerged—one highlighting the promise of homegrown nuclear technology, the other exposing the frustrations of a small energy company’s struggle with government bureaucracy. Together, they paint a vivid picture of the challenges and opportunities facing Britain’s pursuit of energy security and Net Zero ambitions.
On August 16, 2025, the University of Manchester announced that its ENLIGHT programme had secured more than £13 million in public and industry funding to advance sustainable graphite supplies for the nuclear sector. According to the university’s press release, the initiative aims to support Britain’s nuclear industry by focusing on two crucial fronts: establishing a reliable domestic graphite supply chain and developing solutions to manage the mounting stockpile of irradiated graphite waste. The five-year programme is a collaborative effort, drawing expertise from Manchester, Oxford, Plymouth, and Loughborough universities, and is further buoyed by £5 million in industry investment on top of an £8.2 million grant from UK Research and Innovation’s Engineering and Physical Sciences Research Council (EPSRC).
Professor Abbie Jones, chair in nuclear graphite at the University of Manchester and principal investigator for ENLIGHT, summed up the stakes: “Nuclear graphite plays a vital role in the safety and efficiency of advanced reactors, yet the UK currently relies on overseas suppliers for this material. ENLIGHT will lay the foundation to re-establish a UK-based graphite supply chain while developing sustainable solutions to recycle and reuse irradiated graphite – transforming a growing waste stream into a valuable resource. This programme will reduce waste, strengthen energy security, and support the country’s net zero ambitions.”
The timing couldn’t be more critical. Graphite is a key component in the next generation of Advanced Modular Reactors (AMRs), which are expected to play a pivotal role in the UK’s clean energy transition over the next 25 years. Yet, as things stand, the country lacks sufficient domestic graphite, forcing it to rely on imports. The material is expensive, accounting for more than 30% of reactor construction costs, and the UK’s dependency on foreign suppliers represents a strategic vulnerability.
But the challenge doesn’t end there. The nation is also grappling with a legacy of nuclear waste—over 100,000 tonnes of irradiated graphite currently sit in storage, and that figure is set to rise as the UK’s fleet of Advanced Gas-cooled Reactors faces decommissioning by 2028. ENLIGHT claims that developing sustainable graphite and recycling technologies could save the country as much as £2 billion in waste management costs, while also bolstering research and innovation in the field.
The programme’s structure reflects the complexity of the problem. The University of Oxford leads efforts on graphite selection and design, Loughborough applies computational modelling to study graphite’s behaviour under extreme conditions, and Plymouth analyzes the porous materials crucial for evaluating repurposed graphite. Beyond research, ENLIGHT is also investing in skills development, aiming to maintain the UK’s leadership in nuclear innovation and clean energy.
While the ENLIGHT initiative represents a hopeful stride toward energy independence and sustainability, another story unfolding this week illustrates just how precarious progress can be in the UK’s energy sector—especially for smaller companies trying to break through.
Energy Pathways PLC (EPP), a small-cap integrated energy transition company, has experienced a rollercoaster 18 months since its reverse takeover (RTO) at the end of 2023. At the outset, EPP’s ambitions seemed well-aligned with national priorities: the company aimed to develop “ready-to-go” gas projects to support energy security and Net Zero goals, raising £2 million and achieving a market cap of £6.3 million. The centerpiece of its strategy was the Marram project, a fully appraised gas field in the UK–Irish Sea boasting up to 35.3 billion cubic feet (BCF) of underdeveloped gas. EPP touted Marram as a low-emission, low-cost project with the potential for long-duration energy storage and hydrogen production—a compelling proposition in the wake of the Russia–Ukraine conflict, which rattled Europe’s gas supplies and underscored the need for domestic energy resilience.
Early 2024 brought a flurry of activity: EPP partnered with MCS and Mermaid on the Marram project, targeting first gas as early as 2025. By August, the company had applied for a gas storage licence to create a hub capable of heating 2.2 million UK homes, further raising the stakes. In September, EPP announced that the final investment decision for the Marram Energy Storage Hub (MESH) was expected by late 2025, with the first energy supply anticipated in 2027. But beneath the surface, financial strains were mounting. By September, EPP’s cash reserves had dwindled to under £1.2 million, and its share price had slipped from 4p at the time of the RTO to just 1.5p.
Fortune seemed to turn in October 2024, when EPP secured a £5.1 million Green Loan Facility from Global Green Asset Financing Limited, a Luxembourg-based green finance platform. The loan, structured with a three-year term and a 12.5% annual coupon paid monthly, sent the company’s shares soaring to nearly 12p. CEO Ben Cube was briefly hailed as a champion of small-cap innovation, even as skeptics raised questions about the funding’s terms and the government’s reliability as a business partner.
Yet the optimism proved short-lived. On August 14, 2025, the North Sea Transition Authority (NSTA) delivered a crushing blow, informing EPP that it would not be awarding a Gas Storage Licence for the MESH project. The decision stunned many in the sector, with industry watchers speculating whether the NSTA’s move was motivated by a preference for larger players or a misunderstanding of the project’s merits. EPP responded by resubmitting its application and seeking approval directly from the Secretary of State—a move that could bypass what critics have described as the NSTA’s “subjective whims.”
As of August 16, 2025, EPP’s market cap had plummeted to around £4 million, and retail investors were left wondering whether the company could recover or would become just another cautionary tale. For now, EPP’s future hangs in the balance, with hopes pinned on ministerial intervention and a potential rebound if the MESH project is ultimately approved.
The contrast between ENLIGHT’s government-backed momentum and EPP’s regulatory roadblocks highlights a central tension in Britain’s energy transition. On one hand, there is clear political and financial support for innovation in nuclear and clean energy technologies. On the other, small companies pursuing ambitious projects often find themselves at the mercy of opaque decision-making and shifting policy winds.
As the UK races to secure its energy future, these stories offer a glimpse of both the promise and the pitfalls that lie ahead. Whether through collaborative, well-funded research or the grit and determination of small-cap trailblazers, the nation’s energy ambitions will likely depend on its ability to balance innovation with practical, transparent governance. For now, all eyes are on the next steps—both in the laboratory and in the corridors of power.
