Liquid Air Energy Storage Market To Generate Revenue worth $4,887.6 Million by 2030
- Published: January 2024
The liquid air energy storage market is set to grow at a CAGR of 18.8% from 2024 to 2030 and reach USD 4,887.6 million by 2030. This is because the electricity sector is strongly focusing on its decarbonization, for which producing more renewable energy and synchronizing it with the grid are highly important.
Many countries’ governments have established emission targets to reach net-zero. Therefore, power grids are undergoing changes, as they are one of the key elements of the energy transmission and distribution infrastructure. The widespread use of the liquid air energy storage technology can enable grids to become more responsive and resilient because it emits no emissions and stores a large volume of air in a small area.
The importance of storage systems is growing as renewable energy sources become highly common in the world's electricity mix. The capacity of LAES ranges from 50 to 600 Megawatt-hours, and the duration can be from 4 to 20 hours. Moreover, a study conducted in 2021 shows that the integration of LAES with nuclear power can achieve round-trip efficiency (RTE) of 59.96%, which is why it can be used for load-following operations.
The setup of these systems does require some specific environmental conditions to prevent plant malfunction and damage, but they can be swiftly erected without posing any geological problem. Further, in addition to being abundant, the materials used in LAES make it a more-sustainable and environmentally beneficial energy storage option.
Europe holds Significant Market Share
Europe held significant market share as many companies are setting up renewable energy generation and energy storage systems in the U.K. Additionally, due to the various energy-related issues faced by Europe, governments and companies are strongly focusing on research and development.
For instance, Highview Power announced in 2022 that it was seeking USD 472 million for the design and construction of the first commercial-scale liquid air energy storage facility in the world. The plant, which is expected to be constructed close to Manchester in northern England, will have a capacity to store 300 MWh of energy for up to 12 hours. Around USD 25 million has been given by the British government. Further, as per reports, Europe and MEA launched new storage systems in 2022 with a capacity of 4.5 GW/7.1 GWh.
Additionally, Highview Power plans to build up to 2 GWh of LAES projects in four Spanish regions, that is, Asturias, Cantabria, Castilla y Leon, and the Canary Islands, for USD 1 billion. In 2019, there were seven projects under consideration, all with a capacity of 300 MWh and an output rating of nearly 50 MW.
Some key players of the market are Highview Enterprises Ltd, MAN Energy Solutions SE, General Electric Company, Linde plc, Messer SE & Co. KGaA, Mitsubishi Hitachi Power System, and Siemens AG.