Hatsukaichi LAES

Hatsukaichi LAES

Project Details

Location

Hatsukaichi, Hiroshima, Japan

Capacity

5 MW-electric, 20 MWh-electric

COD

COD: 2025

About This Project

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.

Project Timeline

Further Reading

News Article

LDES Council Case Study

The document is a case study about Sumitomo Heavy Industries building the world’s first commercial liquid air energy storage (LAES) plant in Hiroshima, Japan, which uses air and recycled industrial cold to provide zero-emissions backup power and grid stability, supporting Japan’s 2050 carbon neutrality goals.

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Company Website

Commencement of Commercial Operations at LAES Commercial Demonstration Plant

The page announces the commencement of commercial operations at the world's first Liquid Air Energy Storage (LAES) commercial demonstration plant, developed by Sumitomo Heavy Industries and Hiroshima Gas, which uses LNG cold energy to improve efficiency and aims to support grid stabilization and decarbonization by enabling long-duration energy storage.

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Company Website

Sumitomo SHI FW Collaborates with Siemens Energy to Advance Long Duration Energy Storage Market with Technology that Uses Clean Air

Sumitomo SHI FW and Siemens Energy have signed a Memorandum of Understanding to collaborate on developing and advancing Liquid Air Energy Storage (LAES) technology, which uses clean air for long-duration energy storage to support renewable integration and grid stability worldwide.

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Company Website

World’s First Commercial Scale LAES Plant Operational

The post announces the inauguration of the world's first commercial-scale Liquid Air Energy Storage (LAES) plant integrated with LNG cold energy in Hiroshima, Japan, highlighting its role in delivering zero-carbon energy and supporting grid stability as a milestone for clean energy innovation.

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Company Website

Notice Regarding the Completion of the Acquisition of JGC Coal Fuel Service Corporation Shares

Sumitomo Heavy Industries and Hiroshima Gas Co., Ltd. are partnering to build a commercial demonstration plant for Liquid Air Energy Storage (LAES) using Highview's technology, aiming to support clean energy supply and decarbonization by storing renewable energy and participating in various power markets.

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Press release

Notice Regarding the Completion of the Acquisition of Shares of JMU and Conversion into a Subsidiary

Sumitomo Heavy Industries and Hiroshima Gas held a safety prayer and groundbreaking ceremony for a Liquid Air Energy Storage (LAES) commercial demonstration plant at Hiroshima Gas’ Hatsukaichi Plant, aiming to start operations in 2025 and contribute to clean energy and decarbonization efforts.

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Image Source

Projects

The Highview Power projects page highlights the company's development of large-scale, long-duration energy storage and grid stability facilities in the UK and globally, aimed at supporting renewable energy integration and accelerating the transition to net zero.

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