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

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

September 2, 2026
Sungrow’s first-half-of-year (H1) revenue fell 28.99% year-on-year, while net profit attributable to owners of the parent company dropped 32.01%.
August 31, 2026
CATL has formed a partnership to work on projects awarded contracts through Brazil’s first national energy storage auction programme, which received more than 6,000 bids.
August 28, 2026
Geothermal energy company Bedrock Energy has had its proposed compressed air energy storage (CAES) project in Huron County, Ontario, Canada rejected.
Premium
August 28, 2026
China’s listed battery storage companies have entered the peak interim reporting season, with H1 2026 likely marking the broadest profit recovery in recent years.
Premium
August 27, 2026
A total of 18GWh of large-scale BESS capacity came online in July 2026, of which China accounted for 70%.