Hatsukaichi LAES

Executive Overview

The Hatsukaichi LAES Power Station is a 5 MW / 20 MWh liquid air energy storage (LAES) facility that commenced commercial operations on 1 December 2025 at Hiroshima Gas's Hatsukaichi LNG Terminal in Hiroshima Prefecture, Japan. Developed by Sumitomo Heavy Industries (SHI) in partnership with Hiroshima Gas, the plant is the world's first commercial-scale LAES facility to integrate with an LNG terminal, using the terminal's waste cold energy to significantly improve charging efficiency and avoid emissions from gas-fired boilers. The project was designed to demonstrate compliance with LAES design and construction regulations, verify efficiency gains from LNG cold energy reuse, and participate in Japan's grid operation and power supply-demand markets. SHI operates the plant and is responsible for its design, construction, operation, and management.

How It Works & Differentiation

The system charges during off-peak periods by using surplus electricity to liquefy air through a refrigeration process, storing the resulting liquid air in low-pressure, insulated tanks. During discharge, the liquid air is expanded to gas under high pressure, driving turbines and generators to supply electricity to the grid. The integration with Hiroshima Gas's LNG terminal is the key technical differentiator: cold energy recovered during LNG regasification is used to pre-cool the incoming air during charging, substantially reducing the electricity required for liquefaction and improving round-trip efficiency. The plant provides synchronous power to the grid, delivering grid stability services including inertia, reactive power, and short-circuit capacity that are not available from non-synchronous storage technologies.

Commercialization & Traction

The plant participates in Japan's wholesale electricity market (2 MW minimum load), the Supply and Demand Adjustment Market (3 MW), and the Capacity Market (4.99 MW), establishing a multi-revenue stream commercial model for LAES at grid scale. Sumitomo SHI FW, SHI's boiler and energy systems subsidiary, has simultaneously signed an MOU with Siemens Energy to jointly advance the LAES market globally, positioning Hatsukaichi as the operational reference point for that commercial programme. The project was publicly inaugurated on 9 December 2025, and has been documented as a case study by the Long Duration Energy Storage (LDES) Council, increasing its international visibility.

Scalability & Strategic Context

Hatsukaichi is the first proof point in what SHI and its partners are positioning as a globally scalable LAES platform. Highview Power, whose CRYOBattery technology underpins the Hatsukaichi design, has a UK programme identifying over 16 sites with potential to serve 7.6 million homes, and projects in planning in Australia. The LNG cold-energy integration model is particularly relevant for Japan, South Korea, and other import-dependent LNG markets where regasification terminals are co-located with industrial or grid infrastructure. Japan's 7th Strategic Energy Plan and its 2050 carbon neutrality target provide the policy framework within which further domestic LAES deployments are likely to be evaluated.