Deals Counterparts

Harbin Electric Corporation and Shanghai Electric supplied core equipment for Huai'an Salt Cavern CAES project

Supply Agreement Storage announced China Mar 4, 2026
USD520M
Deal Value
600 MW
Capacity
operating
Stage
Huai’an Salt Cavern CAES demonstration project
Project

Harbin Electric Corporation and Shanghai Electric supplied core equipment, including air turbine units, generators, electric motors, and molten salt storage tanks, for the newly operational 600 MW Huai'an Salt Cavern compressed air energy storage project in China.

Deal Analysis

This announced supply agreement involves two prominent Chinese industrial players, Harbin Electric Corporation and Shanghai Electric, providing core equipment for the newly operational 600 MW Huai'an Salt Cavern compressed air energy storage (CAES) project in China. The scope of supply encompasses critical components essential for the project's operation, including air turbine units, generators, electric motors, and molten salt storage tanks, highlighting the depth of their involvement in this significant infrastructure development. The deal is notable for the collaboration between Shanghai Electric, a major multinational power generation and electrical equipment manufacturer, and Harbin Electric Corporation, in a large-scale energy storage initiative. The 600 MW capacity of the Huai'an CAES project positions it as a substantial asset for long-duration energy storage, crucial for grid stability and the integration of renewable energy sources. This partnership underscores the domestic capability within China to develop and equip advanced, large-scale energy storage solutions. While the financial value of the agreement has not been disclosed, its strategic importance lies in further solidifying the suppliers' positions within the rapidly expanding energy storage sector. The successful deployment of complex equipment for a salt cavern CAES project demonstrates a maturing supply chain for advanced storage technologies in China, directly supporting the nation's ambitious clean energy transition objectives.
  • Supply agreement for core equipment for a 600 MW CAES project.
  • Involvement of major Chinese industrial suppliers: Harbin Electric Corporation and Shanghai Electric.
  • Focus on advanced, large-scale salt cavern compressed air energy storage (CAES) technology.
  • Strategic project located in China, supporting its energy transition.

Source Intelligence

KEY DETAILS

The project has 2,400 MWh of storage. It utilizes roughly 980,000 cubic meters of salt caverns located 1,150–1,500 meters underground. It employs non‑supplementary combustion high‑temperature adiabatic compression technology, based on molten salt and pressurized thermal water, achieving approximately 71% conversion efficiency. The first 300 MW unit reached full-load operation in December 2025. Quote: "With 600 MW of installed capacity and 2,400 MWh of storage, the Huai’an Salt Cavern project is now the world’s largest compressed air energy storage facility... The project features two 300 MW CAES units, utilizing roughly 980,000 cubic meters of salt caverns located 1,150–1,500 meters underground. It employs non‑supplementary combustion high‑temperature adiabatic compression technology, based on molten salt and pressurized thermal water, achieving approximately 71% conversion efficiency. ...The first 300 MW unit reached full-load operation in December 2025, followed by Unit 2’s commissioning."

Deal Size
With a total investment of $520 million
Capacity
With 600 MW of installed capacity
Location
the Huai’an Salt Cavern CAES demonstration project in Jiangsu Province stands as the largest operating facility of its kind globally.
COD
World's largest compressed air energy storage station now fully operational in China
PARTIES MENTIONED IN SOURCE
H
Harbin Electric Corporation supplier

"Harbin Electric Corporation and Shanghai Electric supplied core equipment"

S
Shanghai Electric supplier

"Harbin Electric Corporation and Shanghai Electric supplied core equipment"

high quality Enriched Mar 4, 2026

Timeline

Announced
Mar 4, 2026
Signed
Closed