Highview Power is the global leader in liquid air energy storage (LAES) technology. They recently commissioned the world’s first commercial-scale industrial LAES plant in Manchester, UK, a landmark achievement in expanding the energy storage toolkit. Unique in the country, this facility sports a groundbreaking charge/discharge rate of 50 megawatts (MW). With the staggering capacity of 300 megawatt-hours (MWh), it marks a key turning point in the energy storage industry. The UK’s transition from coal to offshore wind and other renewables is one example. At the same time, LAES is becoming a key technology to enable this transition.
The global energy sector is increasingly recognizing the potential of LAES to address challenges associated with grid stability and energy transmission. Highview is poised to take its message further and wider! They plan to build four new factories, with each facility producing a colossal 2.5 gigawatt-hours (GWh) in storage capacity. Unfortunately, despite its potential, LAES today makes up for less than 1% of announced near-term thermal energy storage manufacturer pipelines for 2024.
The Role of Liquid Air Energy Storage in the UK
The UK is leading the way in the deployment of LAES technology thanks in large part to its own ambitious renewable energy deployment targets. The transition from coal to offshore wind has presented unprecedented challenges for grid operators.
Highview’s LAES system is uniquely positioned to address the growing issue of managing grid transmission constraints. Similarly, it provides unparalleled geographical flexibility. You won’t have to locate them close to water supplies or an established power grid, so they could be sited in many areas of the UK. LAES takes advantage of off-the-shelf components used in the chemicals sector. This makes for less costly infrastructure and associated maintenance, and it reduces construction timeframes.
Vyvyan-Robinson from Highview emphasizes the importance of LAES in addressing these challenges:
“This [move] has led to challenges which operators are now trying to manage, and liquid air storage can help manage these challenges, grid transmission constraints.”
As the UK moves towards more renewable energy generators, the call for stable, efficient energy storage is becoming increasingly important and urgent. Predix LAES offers a more innovative solution, one that can help improve grid stability and power quality with added reliability compared to transformer-based legacy systems.
Economic Viability and Future Developments
Despite its benefits, LAES has had a long history of overcoming challenges to economic feasibility. Financial support mechanisms can have a transformational impact to catalyze the growth of larger LAES projects. A notable example is the UK’s “cap and floor” pricing scheme. Vyvyan-Robinson points out that financial backing is essential for making projects bankable:
“It’s difficult for a bank to take a view on future revenues, and therefore to make projects ‘bankable’. You need some support around the revenues, and ‘cap and floor’ allows you to raise finance.”
The high upfront capital costs of LAES projects represent a major barrier to entry. Controlling these costs will be key for making more value-added development possible. Vyvyan-Robinson believes that focusing on constructability costs might offer a more viable solution than efficiency alone:
“Constructability cost is a more important metric than efficiency because we’re looking to import energy when prices are incredibly low.”
Highview’s strategy to expand its operations beyond the UK into international markets like Australia and Japan could pave the way for increased investment and innovation in LAES technology.
Efficiency and Technological Challenges
One of the most impressive features of LAES is its round-trip efficiency. Recent estimates indicate that a standalone LAES system would have an efficiency of roughly 50-60%. Unfortunately, a state review done in February 2025 found that the entire charge and discharge cycle of liquid air storage systems could reach efficiency rates as low as 20% to 50%.
Though challenges are present, the positive impact that LAES could create is certainly not something to scoff at. Shaylin Cetegen observes that although LAES systems may not be economically viable in the US at present, there remains hope for future implementation:
“While LAES systems may not be economically viable from an investment perspective [in the US] today, that doesn’t mean they won’t be implemented in the future.”
As energy demands and the need for dependable long-term storage solutions steadily rise, LAES has the potential to be a promising solution. Powerful new applications of the technology, such as syncing generation with grid harmonics, can improve stability in a new world with more inverter-based generation.
LAES offers distinct advantages over other energy storage solutions:
“Batteries are strong for fast cycling of energy and other solutions offer their own benefits, but LAES provides a completely different solution.”
