China's 792 Million kWh Compressed Air Energy Station Becomes Fully Operational
Key Takeaways
- ▸The world's largest compressed air energy storage facility in China's Jiangsu Province is now fully operational with 600 MW capacity and 2,400 MWh storage
- ▸The $520 million project will generate 792 million kWh annually, powering 600,000 households while cutting CO₂ emissions by 600,000 tons per year
- ▸The system uses abandoned salt caverns 1,150-1,500 meters deep and employs molten salt technology to achieve 70-71% conversion efficiency without fossil fuel combustion
Summary
China has fully commissioned the world's largest compressed air energy storage (CAES) facility in Jiangsu Province's Huai'an region. The $520 million demonstration project recently achieved a major milestone when Unit 2 successfully connected to the grid and reached full-load power generation, joining Unit 1 which became operational in December 2025. The facility boasts 600 MW of total installed capacity across two 300 MW units, with 2,400 MWh of storage capacity and approximately 70-71% conversion efficiency.
The system utilizes abandoned salt caverns located 1,150 to 1,500 meters underground as massive energy storage chambers. During periods of low electricity demand, air is compressed and stored in these caverns; during peak demand, the compressed air is released to drive turbines and generate power. The project employs advanced 'molten salt + pressurized thermal water' non-supplementary combustion technology, which stores and reuses heat from compression without burning fossil fuels, making it a genuinely low-carbon energy storage solution.
Shanghai Electric provided critical equipment including air turbine units, generators, electric motors, and molten salt storage tanks for the project. Once at full capacity, the facility is expected to generate 792 million kWh of electricity annually—enough to power approximately 600,000 households. The environmental impact is substantial: the system will save approximately 250,000 tons of standard coal and reduce CO₂ emissions by 600,000 tons each year, supporting China's transition to a new-type power system with improved grid stability through peak shaving and frequency regulation.
- Shanghai Electric supplied core equipment including turbines, generators, and molten salt storage tanks for both 300 MW units
