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The liquid air energy storage (LAES) market is expected to grow significantly from USD 1,739.4 million in 2024 to USD 4,887.6 million by 2030, reflecting a CAGR of 18.8%. This growth is fueled by the increasing power demand driven by industrialization and globalization. LAES technology serves various applications, including peaking power, grid support, emergency backup, voltage control, and frequency regulation.
LAES technology offers high energy density, easy setup, and long-duration energy storage (LDES). It utilizes air stored as a liquid, which is then converted back to gas to drive turbines. Advantages of LAES systems include a long lifespan, high efficiency, and suitability for medium-to-large-scale applications, with systems capable of producing over 100 MW.
In the industrial segment, LAES ensures power availability during outages and aids in demand-side management, reducing energy costs. This approach enhances load control and power system contingency, thereby improving the overall efficiency of power systems. Notably, the electricity and heat industries accounted for about 14% of global emissions prior to the implementation of net-zero mandates worldwide, aimed at achieving carbon neutrality by 2050.
According to predictions, 65 Gt of greenhouse gases will be emitted in 2022. LAES technology supports these objectives by mitigating uncontrolled emissions and facilitating the integration of renewable energy sources (RES), such as solar and wind power.
Ongoing research and development, along with investments in the power and energy sectors, primarily focus on advanced power grids, including renewable and smart grids. The LDES capabilities of LAES target grid-scale deployments, addressing issues related to voltage, frequency, and grid congestion. LAES promotes renewable energy integration by storing energy from intermittent renewable sources and converting it into usable power.
Research indicates that hybridizing RES with LAES can potentially offset 100% of fossil fuel energy. RESs feed energy into air liquefaction during off-peak periods, and the stored liquid air is used in turbines when necessary. This method offers better energy density than pumped hydro storage (PHS) and compressed air energy storage (CAES) without being site-specific.
These developments highlight the growing importance of LAES in enhancing energy storage capabilities and transitioning to cleaner energy sources to meet the increasing global energy demand.
North America: The North American region is the largest market for liquid air energy storage systems. The U.S., in particular, has made significant investments in renewable power and has ambitious future goals. Approximately 90 power storage projects have been commissioned in California, where companies are integrating solar resources to improve system reliability. The U.S. and Canadian markets are driven by the need for clean power storage and corporate partnerships.
Asia-Pacific (APAC): The APAC region is expected to witness substantial growth in the LAES market, with a projected CAGR of 19.2% until 2030. This growth is attributed to rapid economic development and industrialization. LAES systems are employed in various sectors, including oil & gas and power & energy, due to their compatibility with any gas. Key applications in APAC include backup power, carbon capture, and industrial process cooling. The Asia-Pacific countries are investing heavily in renewable power research and development, accelerating market growth. India, for instance, requires 160 GWh of storage capacity by the end of the decade, with 61% needed for the renewable power sector's decarbonization targets.
Source: P&S Intelligence
