Liquid air instead of lithium batteries? The UK launches the world’s first next-generation energy storage facility
Highview Power completes construction of the world’s first commercial liquid air energy storage (LAES) facility.The installation, scheduled to start operations in 2026, could chart a new path for green energy by offering an alternative to lithium-ion batteries and pumped-storage hydroelectric plants.
A new solution to an old challenge: what to do with excess renewable energy
The growing share of renewables in global electricity generation brings climate benefits but also new challenges for grid operators. When the sun isn’t shining or the wind isn’t blowing, there’s a shortage of power. Conversely, during ideal conditions, excess energy can overload the system.
Energy storage is therefore essential for the energy transition. Until now, pumped-storage plants and batteries have dominated, with installed capacity growing from 1 GW to over 80 GW in the past decade.
How liquid air energy storage works
The LAES system uses a physical process where ordinary air becomes an energy fuel:
- Charging: Ambient air is compressed and cooled to -196°C, turning it into a liquid.
- Storage: The liquid air is kept in specialized tanks for days without energy loss.
- Discharging: When energy is needed, the liquid is heated, and the expanding gas drives turbines to generate electricity.
With heat recovery, the process achieves 60–70% efficiency, comparable to other storage technologies.
Carrington – the world’s first commercial LAES plant
Near Manchester, Highview Power is building a facility capable of storing 300 MWh, enough to power 480,000 homes for several hours.
The project will be commissioned in two phases:
- 2026: Technological startup and grid stabilization operations
- 2027: Commercial operation and energy sales to the grid
According to Richard Butland, CEO of Highview Power, the storage system will help reduce costly interventions by grid operators, who currently often rely on gas plants to maintain system stability.
Economics and policy: support is needed
MIT research led by Shaylin Cetegen analyzed LAES economic feasibility across 18 U.S. regions. Findings show profitability emerges in highly decarbonized grids, e.g., Texas or Florida. In less advanced areas, initial subsidies or government guarantees can make the technology viable.
The UK’s “cap and floor” model provides investors a minimum return on capital without direct cost to the government, enabling rapid scaling of LAES projects.
Cheaper than lithium and pumped hydro
Industry estimates suggest LAES could be up to three times cheaper than alternatives:
- LAES: ~$45/MWh
- Pumped-storage hydro: ~$120/MWh
- Lithium-ion batteries: ~$175/MWh
Lower cost, long lifespan (decades), and no reliance on rare materials make LAES a promising component of global energy infrastructure.
Toward a hybrid future
Experts agree there’s no single perfect storage technology. Future grids will combine various methods — hydro, batteries, and liquid air — depending on local conditions. This diversity of storage solutions is key to stable energy systems worldwide.
Source: BBC