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A state-funded consortium is building Chinas first large-scale compressed air energy storage (CAES) project using a fully artificial underground cavern, marking a major step toward commercializing the technology.A consortium led by Astate is developing a 300 MW/1200 MWh compressed air energy storage (CAES) project in Xinyang, Henan Province, with a fully artificial underground cavern, the first of its kind in China. The project, valued at 2.15 billion yuan ($300 million) and backed by local state-owned Xinyang Construction Investment Group, technology specialist CAES China Energy Storage National Engineering Research Center (China Energy Storage) and two other state-owned investment firms, is scheduled for completion by the end of 2026. Unlike traditional CAES facilities, which use natural underground formations or salt caverns, this project will excavate a dedicated storage chamber under a mountain over two years. The cavern, 15 metres in diameter and 1,800 metres long, will have a total air storage capacity of 318,000 cubic metres. Construction involves precision blasting, structural reinforcement, concrete lining and a sealed steel layer to withstand an operating pressure of 14 MPa. The project is led by China Energy Storage’s Henan subsidiary, which has previously developed multiple CAES facilities, including 100 MW, 150 MW and 300 MW facilities. By December 2024, approximately 400 meters of the transport tunnel had been completed, representing almost 80% of the planned progress, and excavation of the storage cavern has already begun. Once operational, the facility is expected to achieve a conversion efficiency of 72.1% and generate 420 million kWh annually, enough to power 350,000 homes. The system incorporates China Energy Storage’s latest 300 MW CAES technology, featuring multi-stage compressors, high-load turbines and advanced supercritical heat exchangers. This design improves efficiency by 2% over its 100 MW predecessor, while reducing unit costs by 30%. By replacing the CAES’s conventional combustion chambers with high-efficiency heat exchangers, the system eliminates dependence on fossil fuels, ensuring zero emissions and environmental sustainability. Designated as a pilot project under the China National Energy Administration’s new energy storage initiative, the Xinyang facility pioneers an innovative air-sealing approach to artificial underground storage, providing a significant boost to the commercialization of CAES technology in China. |
