Liquid Air Energy Storage: Complementary to BESS
LAES is gaining 2025 momentum as the long-duration partner to lithium-ion, economically scalable for multi-day storage, with commercial demonstrations in Korea, the UK, and China.
Liquid Air Energy Storage (LAES) is gaining traction in 2025 as a strong complement to battery storage rather than a direct alternative. LAES converts surplus electricity, typically from wind or solar, into liquid air through cryogenic cooling. When power is required, the liquid air is expanded to drive turbines and generate electricity. This enables large-scale, long-duration storage without reliance on scarce minerals or specific geography.
Where LAES Fits
Lithium-ion remains optimal for short-duration applications such as frequency regulation and intraday balancing, but its costs and material constraints rise sharply for multi-day storage. LAES addresses this gap, offering economically scalable storage from several hours to multiple days, with a competitive levelised cost of storage in bulk energy-shifting applications.
Commercial Momentum
- Korea Institute of Machinery and Materials demonstrated a 2025 LAES system producing 10 tonnes of liquid air per day, signalling readiness for industrial-scale deployment.
- UK, Highview Power's multi-GWh LAES projects progressed under Ofgem's Cap and Floor scheme, signalling growing confidence in LAES as a long-duration storage solution.
- China has started commissioning the world's largest LAES system.
A Hybrid Storage Architecture
Batteries for fast response, LAES for long-duration energy shifting, together they offer improved grid resilience and cost optimisation. As renewable penetration rises, LAES is increasingly viewed as a critical enabling technology to complement batteries and ensure reliable, low-carbon power systems.
References
MIT Energy Initiative · The Chemical Engineer · Highways Today · Power · PV Magazine