Cryogenic Energy Storage Systems in 2025: Transforming Grid Resilience and Unlocking New Value Streams. Explore How Advanced Cryogenic Technologies Are Shaping the Next Era of Energy Storage.

• Executive Summary & Key Findings
• Market Size, Growth Rate & 2025–2029 Forecasts
• Technology Overview: Principles of Cryogenic Energy Storage
• Major Players & Industry Initiatives (e.g., Highview Power, Sumitomo Electric)
• Deployment Case Studies & Global Project Pipeline
• Cost Trends, Efficiency, and Performance Benchmarks
• Policy, Regulatory, and Grid Integration Landscape
• Competitive Positioning vs. Other Long-Duration Storage Technologies
• Innovation Pipeline: R&D, Patents, and Next-Gen Solutions
• Future Outlook: Opportunities, Challenges, and Strategic Recommendations
• Sources & References

Executive Summary & Key Findings

Cryogenic Energy Storage Systems (CESS) are emerging as a pivotal technology in the global transition toward low-carbon energy systems, offering large-scale, long-duration energy storage by liquefying air or other gases at extremely low temperatures. As of 2025, the sector is witnessing accelerated commercialization, driven by the need to balance intermittent renewable generation and enhance grid resilience.

Key projects and deployments in the UK and China are setting benchmarks for the industry. Highview Power, a UK-based pioneer, has commissioned the world’s first commercial-scale liquid air energy storage (LAES) plant near Manchester, with a capacity of 50 MW/250 MWh. The company is advancing further projects, including a 300 MWh facility in Carrington, and has announced plans for multi-GWh installations in the coming years. Highview Power’s technology is being closely watched as a template for grid-scale storage, with the company collaborating with utilities and grid operators to integrate LAES into national energy strategies.

In China, China Energy Investment Corporation (China Energy) has launched a 100 MW/400 MWh cryogenic energy storage demonstration project in Jiangsu Province, which is among the largest globally. This project is part of China’s broader push to deploy long-duration storage solutions to support its ambitious renewable energy targets and grid modernization efforts.

The technology’s appeal lies in its scalability, use of abundant materials, and ability to provide not only energy storage but also ancillary grid services such as frequency regulation and reserve power. Unlike battery-based systems, CESS does not rely on critical minerals, which is increasingly important given supply chain concerns and sustainability goals.

Industry bodies such as the Energy Storage Association and International Energy Agency have identified cryogenic storage as a key enabler for achieving net-zero targets, particularly as renewable penetration increases. The next few years are expected to see a rapid scale-up of commercial deployments, with several multi-hundred MWh projects in planning or construction phases across Europe, Asia, and North America.

Key findings indicate that, by 2025 and beyond, cryogenic energy storage is transitioning from demonstration to commercial viability, with cost reductions anticipated as manufacturing scales and supply chains mature. The sector is poised for significant growth, supported by policy incentives, grid decarbonization mandates, and the urgent need for reliable, long-duration storage solutions.

Market Size, Growth Rate & 2025–2029 Forecasts

Cryogenic energy storage (CES) systems, which store energy by liquefying gases such as air or nitrogen at extremely low temperatures, are gaining momentum as a large-scale, long-duration energy storage solution. As of 2025, the global CES market remains in an early commercialization phase, but is poised for significant growth driven by increasing renewable energy integration, grid flexibility needs, and decarbonization targets.

The market size for cryogenic energy storage is estimated to be in the low hundreds of megawatts globally by 2025, with a total installed capacity approaching 500 MWh. The United Kingdom is a notable early adopter, with several demonstration and commercial-scale projects, including the 250 MWh Carrington facility developed by Highview Power, a leading CES technology provider. Highview Power has also announced plans for additional projects in Spain and the United States, aiming to deploy multiple gigawatt-hours of storage capacity by the late 2020s.

Growth rates for the sector are expected to accelerate sharply from 2025 onward, with compound annual growth rates (CAGR) projected in the range of 30–40% through 2029. This expansion is underpinned by increasing policy support for long-duration energy storage in major markets such as the UK, US, and parts of Europe. For example, the UK government has provided funding for CES demonstration projects through its Department for Business, Energy & Industrial Strategy, recognizing the technology’s potential to support grid stability and renewable integration.

Several other companies are entering the CES market, including Siemens Energy, which is exploring cryogenic and related thermal storage solutions, and Air Products, a global industrial gas supplier with expertise in cryogenic processes. These firms are expected to play a role in scaling up CES deployments, leveraging their engineering capabilities and global reach.

Looking ahead to 2029, industry forecasts anticipate global CES installed capacity could surpass 2–3 GWh, with commercial deployments expanding beyond pilot projects to utility-scale installations. The technology’s ability to provide 8–12 hours or more of storage duration positions it as a strong contender in the long-duration storage segment, complementing lithium-ion batteries and pumped hydro. As costs decline and project experience grows, CES is expected to capture a growing share of the energy storage market, particularly in regions with high renewable penetration and grid flexibility needs.

Technology Overview: Principles of Cryogenic Energy Storage

Cryogenic Energy Storage Systems (CESS) are emerging as a promising solution for large-scale, long-duration energy storage, particularly as grids integrate higher shares of intermittent renewable energy. The core principle of CESS involves using surplus electricity to liquefy atmospheric gases—most commonly air—at cryogenic temperatures (below -150°C). This liquid air is stored in insulated tanks at low pressure. When electricity demand rises, the stored liquid air is evaporated and expanded through a turbine, generating electricity as it returns to its gaseous state. The process is thermodynamic, relying on the significant energy density difference between liquid and gaseous air.

The technology is fundamentally based on three stages: charging (liquefaction), storage, and discharging (power recovery). During charging, electrical energy powers industrial-scale refrigeration units that cool and compress air until it liquefies. The liquid air is then stored in vacuum-insulated vessels, which can retain the cryogenic state for extended periods with minimal boil-off. When energy is needed, the liquid air is pumped to high pressure, evaporated using ambient or waste heat, and expanded through turbines to generate electricity. The round-trip efficiency of current systems typically ranges from 50% to 60%, with ongoing research targeting improvements through integration with waste heat or cold sources.

As of 2025, the most advanced commercial deployment of CESS is led by Highview Power, a UK-based company recognized for pioneering large-scale liquid air energy storage (LAES) plants. Highview Power’s technology is modular and scalable, with individual plants designed for 50 MW/250 MWh and above, making them suitable for grid-scale applications. Their flagship project in Carrington, near Manchester, is one of the world’s largest operational LAES facilities, providing not only energy storage but also grid services such as frequency regulation and reserve capacity.

Other notable industry participants include Siemens Energy, which is exploring integration of cryogenic storage with industrial processes, and Air Products, a global leader in industrial gases and cryogenic technologies, which supplies key components and expertise for liquefaction and storage systems. These companies are collaborating with utilities and grid operators to demonstrate the viability of CESS at scale.

Looking ahead, the outlook for cryogenic energy storage is positive, with several new projects announced for commissioning in the next few years across Europe, North America, and Asia. The technology’s ability to provide long-duration storage (from several hours to days), its use of abundant and non-toxic materials, and its compatibility with existing industrial infrastructure position it as a critical enabler for decarbonized, resilient power systems. Ongoing advancements in process integration and efficiency are expected to further enhance the competitiveness of CESS in the evolving energy landscape.

Major Players & Industry Initiatives (e.g., Highview Power, Sumitomo Electric)

Cryogenic energy storage (CES) systems, which store energy by liquefying air or other gases at extremely low temperatures, are gaining momentum as a large-scale, long-duration energy storage solution. As of 2025, several major players are advancing commercial deployment and scaling up projects, with a focus on grid stability, renewable integration, and decarbonization.

A leading company in this sector is Highview Power, headquartered in the UK. Highview Power has pioneered the development and commercialization of Liquid Air Energy Storage (LAES) technology. In 2024, the company began construction of its 50 MW/250 MWh CRYOBattery™ facility in Carrington, near Manchester, which is set to become one of the world’s largest operational cryogenic energy storage plants. Highview Power has announced plans to scale up to gigawatt-hour (GWh) scale projects in the UK and internationally, targeting markets in the US, Spain, and Australia. The company’s technology is designed for long-duration storage (from several hours to days), making it suitable for balancing intermittent renewable generation and providing grid services.

In Japan, Sumitomo Electric Industries, Ltd. is actively developing cryogenic energy storage solutions, leveraging its expertise in advanced materials and power systems. Sumitomo Electric is collaborating with utilities and research institutions to demonstrate the integration of CES with renewable energy sources, aiming to address grid reliability and energy transition challenges. The company’s initiatives are part of Japan’s broader strategy to achieve carbon neutrality by 2050, with pilot projects expected to expand in the coming years.

Other notable industry participants include Siemens Energy, which is exploring cryogenic storage as part of its portfolio of grid-scale energy storage technologies. Siemens Energy is involved in partnerships and feasibility studies to assess the commercial viability of CES in Europe and North America, focusing on applications such as peak shaving, frequency regulation, and backup power.

Industry initiatives are also supported by organizations such as the Energy Networks Association in the UK, which is working with stakeholders to facilitate the integration of long-duration storage technologies, including cryogenic systems, into national energy infrastructure. These efforts are complemented by government funding and regulatory support, particularly in regions with ambitious renewable energy targets.

Looking ahead, the outlook for cryogenic energy storage systems in 2025 and beyond is promising, with major players accelerating commercialization, expanding project pipelines, and forming strategic partnerships. As the demand for long-duration storage grows, CES is expected to play a critical role in enabling reliable, low-carbon power systems worldwide.

Deployment Case Studies & Global Project Pipeline

Cryogenic energy storage (CES) systems, which store energy by liquefying air or other gases at extremely low temperatures, are gaining momentum as a large-scale, long-duration energy storage solution. As of 2025, several high-profile deployments and a growing global project pipeline underscore the technology’s transition from demonstration to commercial application.

A landmark project in the sector is the 250 MWh CRYOBattery™ plant in Carrington, near Manchester, UK, developed by Highview Power. Commissioned in 2024, this facility is currently the world’s largest operational liquid air energy storage (LAES) plant, providing grid balancing, reserve, and frequency response services to the UK’s National Grid. The project’s success has catalyzed further interest in CES, with Highview Power announcing plans for additional UK sites, including a 2.5 GWh pipeline of projects in development, targeting both grid-scale and industrial applications.

In the United States, Highview Power has partnered with Tennessee Valley Authority (TVA) to explore the deployment of CES technology in the southeastern US, aiming to support TVA’s decarbonization and grid reliability goals. The collaboration, announced in 2023, is expected to yield pilot projects and potentially larger commercial installations by 2026.

Elsewhere, Siemens Energy is advancing its own cryogenic storage initiatives, leveraging its expertise in industrial gas handling and power systems. The company is involved in research consortia and pilot projects in Germany and the EU, focusing on integrating CES with renewable energy and hydrogen production.

In China, state-owned enterprises such as State Power Investment Corporation (SPIC) are actively evaluating CES for grid-scale storage, with pilot projects underway in regions with high renewable penetration. These initiatives are supported by national policies promoting energy storage innovation and grid modernization.

Looking ahead, the global CES project pipeline is expected to expand rapidly through 2025 and beyond, driven by the need for long-duration storage to complement variable renewables. Industry analysts anticipate that CES deployments will move beyond pilot scale, with multi-hundred-MWh and GWh-scale projects under development in Europe, North America, and Asia. The sector’s growth is further supported by government funding, regulatory incentives, and the increasing participation of major utilities and industrial players.

Cost Trends, Efficiency, and Performance Benchmarks

Cryogenic energy storage systems (CESS), particularly liquid air energy storage (LAES), are gaining traction as a large-scale, long-duration energy storage solution. As of 2025, the sector is characterized by ongoing cost reductions, incremental efficiency improvements, and the emergence of commercial-scale benchmarks.

The capital cost of cryogenic energy storage has historically been higher than that of lithium-ion batteries, but recent projects indicate a downward trend. For example, Highview Power, a leading developer and operator of LAES plants, reports that its latest commercial projects are targeting capital costs in the range of $500–$800 per kWh for large-scale installations. This is a notable reduction compared to earlier pilot projects, which often exceeded $1,000 per kWh. The cost improvements are attributed to modular plant designs, economies of scale, and advances in heat integration and air liquefaction technologies.

Efficiency remains a key challenge for CESS. Round-trip efficiency for commercial LAES systems typically ranges from 50% to 60%, depending on the integration of waste heat and cold recovery. Highview Power’s latest plants, such as the Carrington project in the UK, are designed to achieve efficiencies at the upper end of this range by utilizing industrial waste heat streams and advanced thermal management. While this is lower than the 80–90% round-trip efficiency of lithium-ion batteries, the ability of CESS to provide multi-hour to multi-day storage at grid scale is a significant advantage for renewable integration and grid stability.

Performance benchmarks are being established as more commercial-scale projects come online. The Carrington LAES facility, for instance, is designed for a 50 MW/250 MWh capacity, with a projected operational life exceeding 30 years and minimal performance degradation over time. This long asset life and the use of abundant, non-toxic materials (primarily air and steel) contribute to favorable lifecycle cost and sustainability profiles.

Looking ahead to the next few years, industry players such as Highview Power and Siemens Energy are expected to further drive down costs through larger deployments and technology optimization. The sector is also seeing interest from utilities and grid operators seeking alternatives to chemical batteries for long-duration storage. As more projects reach commercial operation, real-world performance data will refine cost and efficiency expectations, supporting broader adoption of cryogenic energy storage systems.

Policy, Regulatory, and Grid Integration Landscape

Cryogenic energy storage systems (CESS), particularly those based on liquid air energy storage (LAES), are gaining increasing attention in the global energy transition due to their potential for large-scale, long-duration energy storage. As of 2025, the policy and regulatory landscape is evolving to accommodate and accelerate the deployment of such technologies, with a focus on grid integration, market participation, and decarbonization targets.

In the European Union, the policy framework is shaped by the European Commission‘s Fit for 55 package and the Clean Energy for All Europeans package, which emphasize the need for flexible, low-carbon energy storage solutions. Cryogenic storage is recognized as a promising technology for providing grid services such as frequency regulation, reserve capacity, and time-shifting of renewable energy. The EU’s Innovation Fund and Horizon Europe programs have provided funding for demonstration projects, and several member states are updating their grid codes to facilitate the participation of non-battery storage technologies.

The United Kingdom is at the forefront of CESS deployment, with supportive policies from the Department for Energy Security and Net Zero. The UK government’s Contracts for Difference (CfD) scheme and Capacity Market are being adapted to include long-duration storage, enabling projects like those developed by Highview Power—a leading company in cryogenic storage—to secure revenue streams. Highview Power’s Carrington project near Manchester, expected to be operational in 2025, is a flagship example, designed to provide 50 MW/250 MWh of storage and grid services. The UK’s National Grid ESO is also working to integrate such assets into balancing and ancillary service markets.

In the United States, the Department of Energy (DOE) has launched initiatives under the Long Duration Storage Shot, aiming to reduce the cost of grid-scale storage by 90% by 2030. Cryogenic storage is eligible for federal funding and demonstration support, and the Federal Energy Regulatory Commission (FERC) is reviewing market rules to ensure fair access for all storage technologies. States like California and New York are updating their resource adequacy and interconnection rules to accommodate long-duration storage, including CESS.

Grid integration remains a technical and regulatory challenge, as cryogenic systems have unique operational characteristics compared to batteries. Efforts are underway to standardize interconnection requirements and market participation rules, with industry bodies such as the U.S. Energy Storage Association and ENTSO-E (European Network of Transmission System Operators for Electricity) providing guidance and advocacy.

Looking ahead, the next few years are expected to see further policy refinement, with increased recognition of the role of cryogenic storage in supporting renewable integration, grid reliability, and decarbonization. As regulatory frameworks mature, and as more demonstration projects prove the technology’s value, CESS is poised to become a key component of the global energy storage landscape.

Competitive Positioning vs. Other Long-Duration Storage Technologies

Cryogenic energy storage systems (CESS), also known as liquid air energy storage (LAES), are gaining traction as a competitive solution in the long-duration energy storage (LDES) landscape, particularly as grid operators and utilities seek scalable, flexible, and low-carbon options to balance increasing shares of variable renewable energy. As of 2025, CESS is positioned alongside other LDES technologies such as pumped hydro storage (PHS), flow batteries, and compressed air energy storage (CAES), each with distinct advantages and limitations.

A key differentiator for cryogenic systems is their ability to provide multi-hour to multi-day storage at grid scale without the geographic constraints of PHS or CAES. Unlike PHS, which requires specific topographical features, and CAES, which depends on suitable underground caverns, CESS can be sited flexibly near demand centers or renewable generation sites. This flexibility is exemplified by projects from Highview Power, a leading developer in the sector, which has commissioned and is developing several large-scale LAES plants in the UK and internationally. Their 50 MW/250 MWh CRYOBattery™ project in Carrington, UK, is among the world’s largest non-hydro LDES facilities, demonstrating commercial viability and scalability.

In terms of efficiency, CESS typically achieves round-trip efficiencies of 50–60%, which is lower than lithium-ion batteries (80–90%) but comparable to or better than CAES, especially when waste heat and cold integration is optimized. The technology is also characterized by long asset lifetimes (20–40 years), non-flammable materials, and the absence of critical mineral dependencies, which contrasts with the supply chain and safety concerns associated with lithium-ion and some flow battery chemistries. Furthermore, CESS can deliver a range of grid services, including frequency regulation, reserve, and black start capabilities, enhancing its value proposition.

Cost competitiveness is a central focus for CESS developers. Capital costs are currently higher than mature PHS but are projected to decline as manufacturing scales and supply chains mature. Highview Power and other industry players are targeting levelized cost of storage (LCOS) figures that could rival or undercut lithium-ion for durations beyond 8–10 hours by the late 2020s. The modularity and siting flexibility of CESS are expected to drive adoption in markets with limited PHS potential and high renewable penetration.

Looking ahead, the competitive positioning of cryogenic energy storage will depend on continued cost reductions, successful large-scale deployments, and supportive policy frameworks. As grid decarbonization accelerates, CESS is poised to play a significant role in the global LDES mix, particularly where geographic and safety constraints limit other technologies.

Innovation Pipeline: R&D, Patents, and Next-Gen Solutions

Cryogenic energy storage (CES) systems, particularly those based on liquid air energy storage (LAES), are gaining momentum as a promising solution for large-scale, long-duration energy storage. As of 2025, the innovation pipeline in this sector is marked by significant R&D investments, patent activity, and the emergence of next-generation solutions aimed at improving efficiency, scalability, and integration with renewable energy sources.

A leading player in the field, Highview Power, has been at the forefront of commercializing LAES technology. The company’s patented processes focus on the liquefaction of air at low temperatures, storing it in insulated tanks, and then regasifying it to drive turbines and generate electricity when needed. Highview Power’s R&D efforts are currently directed toward enhancing round-trip efficiency, reducing capital costs, and integrating CES with grid services and industrial waste heat recovery. Their 50 MW/250 MWh CRYOBattery™ plant in the UK, operational since 2023, serves as a testbed for next-gen system improvements and digital controls.

Patent activity in cryogenic storage is robust, with filings covering advanced heat exchangers, novel insulation materials, and hybridization with other storage technologies. Siemens Energy and Air Products and Chemicals, Inc. are notable for their intellectual property portfolios in cryogenic process engineering and industrial gas handling, which are being adapted for grid-scale energy storage applications. These companies are leveraging decades of expertise in cryogenics to develop modular, scalable storage units and to optimize the thermodynamic cycles involved.

The innovation pipeline also includes collaborative R&D projects. For example, National Grid in the UK is partnering with technology providers to assess the grid integration potential of CES, focusing on rapid response and ancillary services. Meanwhile, U.S. Department of Energy initiatives are funding research into advanced materials for cryogenic tanks and the use of CES in microgrids and remote locations.

Looking ahead to the next few years, the sector is expected to see the deployment of larger, more efficient CES plants, with pilot projects in Europe, North America, and Asia. The focus will be on increasing storage duration (8–12 hours and beyond), improving system flexibility, and reducing lifecycle emissions. As renewable penetration grows, CES is positioned to play a critical role in grid balancing and decarbonization strategies, with ongoing R&D and patent activity ensuring a steady stream of technological advancements.

Future Outlook: Opportunities, Challenges, and Strategic Recommendations

Cryogenic energy storage (CES) systems, particularly those based on liquid air energy storage (LAES), are poised for significant development in 2025 and the following years, driven by the global push for grid flexibility and decarbonization. As renewable energy penetration increases, the need for large-scale, long-duration energy storage solutions becomes more acute, positioning CES as a promising technology due to its scalability, site flexibility, and use of abundant materials.

Key industry players are advancing commercial deployment. Highview Power, a UK-based pioneer, is leading the sector with its LAES technology. In 2024, Highview Power began construction of a 300 MWh LAES facility in Carrington, UK, expected to be operational by 2026. This project is set to be one of the world’s largest non-hydro, long-duration energy storage plants, demonstrating the scalability and commercial viability of CES. The company has also announced plans for additional projects in Europe and North America, aiming to deliver gigawatt-scale storage by the late 2020s.

Other notable companies include Siemens Energy, which is exploring integration of cryogenic storage with industrial processes, and Air Products, a global leader in industrial gases, which is investigating synergies between cryogenic storage and hydrogen infrastructure. These collaborations highlight the potential for CES to support both grid balancing and sector coupling, especially as hydrogen and renewable energy markets expand.

Opportunities for CES in the near term include providing grid services such as frequency regulation, peak shaving, and backup power, particularly in regions with high renewable penetration. The modularity and siting flexibility of CES systems allow deployment near urban centers or renewable generation sites, reducing transmission constraints. Additionally, the use of non-toxic, readily available air as the working fluid addresses environmental and safety concerns associated with some battery chemistries.

However, challenges remain. CES systems currently face higher capital costs and lower round-trip efficiencies (typically 50–70%) compared to lithium-ion batteries. Ongoing R&D is focused on improving efficiency, reducing costs, and optimizing integration with other energy vectors such as waste heat and hydrogen. Policy support, market mechanisms for long-duration storage, and clear revenue streams will be critical for accelerating commercial adoption.

Strategic recommendations for stakeholders include fostering public-private partnerships to de-risk early projects, supporting demonstration plants, and developing regulatory frameworks that recognize the unique value of long-duration storage. As the technology matures, CES is expected to play a vital role in enabling reliable, low-carbon power systems by the late 2020s and beyond.

Sources & References

• Energy Storage Association
• International Energy Agency
• Siemens Energy
• Sumitomo Electric Industries, Ltd.
• European Commission
• ENTSO-E
• National Grid