Construction starts on 1.4GWh compressed air energy storage unit in China

October 26, 2022
LinkedIn
Twitter
Reddit
Facebook
Email

Construction has started on a 350MW/1.4GWh compressed air energy storage (CAES) unit in Shangdong, China.

The Tai’an demonstration project broke ground on 29 September and is expected to be the world’s largest salt cavern CAES project, according to a media statement from The State-owned Assets Supervision and Administration Commission of the State Council. Media reports say the project should become operational in 2024.

While being described as a “2x300MW” project the initial investment and construction is on a 350MW/1.4GWh system with 325 degree Celsius low-melting point molten salt high-temperature thermal insulation CAES technology. It takes eight hours to charge and can discharge for four hours.

CAES works by pressurising and funnelling air into a sealed unit, in this case a salt cavern, to charge the system. When energy is needed, the air, which cools during the charging process, is released through a heating system to expand the air which then turns a turbine generator.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The project’s developers are China Energy Engineering Group Co., Ltd. and Taian Taishan New Energy Development Co., Ltd., who together are investing 2.23 billion yuan (US$311 million) in the first of two phases of construction. 

The Commission said the project will help boost new energy storage technologies, encourage the use of renewable energy and make use of the disused salt cavern.

China has taken a bullish approach to the technology. As reported by Energy-Storage.news last month, a 300MWh CAES unit was connected to the grid in Jiangsu. There are nine projects in operation or construction stages totalling nearly 700MW of power and over 5GW at the planning stage, reported the Asia Times earlier this month.

CAES technology has a much lower round-trip efficiency than the two predominant existing forms of energy storage, lithium-ion batteries and pumped hydro energy storage. But Hydrostor, a Canadian company, claims a proprietary Advanced CAES (A-CAES) solution it has developed can raise it to around 65%. A 1,600MWh project Hydrostor is developing in Australia just got funding support from the national Australian Renewable Energy Agency (ARENA).

Read Next

Premium
February 9, 2026
Energy-Storage.news Premium speaks to Daniel Dedrick, US-based BESS developer and operator, GridStor’s CTO, about the company’s strategies for navigating FEOC and Section 301 tariffs.
February 4, 2026
Three Chinese energy storage companies have recently successively filed or updated their listing applications with the Hong Kong Stock Exchange (HKEX), planning IPOs on the Hong Kong Main Board.
Premium
February 3, 2026
Energy-Storage.news Premium hears from Tom Cornell, CEO and President of Prevalon Energy, about the company’s strategies for navigating upcoming changes in the energy storage industry over the next year.
January 30, 2026
By the end of December 2025, China’s cumulative installed capacity of new energy storage technologies including lithium-ion reached 144.7GW, representing an 85% year-on-year rise.
January 29, 2026
Long-duration energy storage (LDES) developer-operator Hydrostor has announced a strategic technology and equity agreement with energy infrastructure equipment manufacturer Baker Hughes.