CH ENERGY ENG(SH:601868) Xin Hua Cai Jing·2025-06-20 09:46Core Insights - The Shandong Tai'an project is a significant energy landmark in China, featuring a 350 MW compressed air energy storage (CAES) power station, which is the largest single-unit capacity CAES project under construction globally [1][2] - The project aims to achieve full-capacity power generation by the end of 2025, with an annual output of 4.6 billion kWh, sufficient to meet the electricity needs of over 200,000 households [1] - The innovative use of abandoned salt caverns for air storage not only utilizes idle resources but also avoids high maintenance costs associated with traditional salt cavern methods [1][2] Project Details - The CAES system operates by compressing air during low electricity demand and releasing it to generate power during peak demand, functioning like a large "battery" [1][2] - The project has completed key construction milestones since its groundbreaking on May 28, 2024, including building works, equipment installation, and drilling [1] - The project manager highlighted the dual function of the system, which also acts as a large air purifier by filtering dust and impurities from the air [1] Industry Context - The CAES project represents a shift in energy storage technology, moving from smaller-scale projects (previously maxing out at 60 MW) to larger capacities, with the Tai'an project being a key example [2] - The flexibility in site selection and shorter construction periods of CAES compared to pumped hydro storage make it an attractive option for energy storage [2] - China has abundant natural salt cavern resources, but traditional development methods have limited their utilization; innovative solutions like underground artificial caverns are being explored in regions with fewer natural resources [2] Future Prospects - The successful implementation of the Tai'an project and the "Energy Storage No. 1" project marks a significant breakthrough in the CAES field, with intentions to expand technology collaboration internationally [3] - The company aims to position CAES as a hallmark of China's green energy initiatives, focusing on technology-driven solutions and comprehensive industry chain offerings [3]