January 18, 2023

Sumitomo Heavy Industries, Ltd. (“SHI”) (Head Office: Shinagawa-ku, Tokyo, President and CEO: Shinji Shimomura) has established a partnership with Hiroshima Gas Co., Ltd. (Head Office: Hiroshima City, Hiroshima, President: Kensuke Matsufuji) and decided to construct a commercial Liquid Air Energy Storage (“LAES” *1) demonstration plant adjacent to Hatsukaichi LNG Terminal.

SHI invested in Highview Enterprise Limited (“Highview” *2 ), industry leader in Liquid Air Energy Storage technology in February 2020 and acquired a license for Highview’s Liquid Air Energy Storage technology. This first commercial demonstration plant is utilizing Highview’s Liquid Air Energy Storage technology. The external cold for increasing the LAES plant’s efficiency will be provided from the LNG plant adjacent to the commercial demonstration plant.

In addition to individual contracts with Power Transmission and Distribution companies, this LAES plant operates in the wholesale power and capacity markets as well as in the supply and demand adjustment markets. Through focus on energy storage market foreseen in the future, and by providing energy storage solutions contributing to the effective use of resources and reduced environmental impact of energy, SHI will contribute to stable supply of clean electricity and the realization of a decarbonized society.

[Purpose of the commercial demonstration project]
① Show compliance with relevant laws and regulations for designing and construction
② Demonstrate operation with grid and with power market
③ Verify process efficiency increase and energy saving by use of external cold

From perspective of decarbonization, the plant stores valuable renewable energy (wind, solar, etc.) and contributes to provision of clean energy when discharged to power the society when needed.

[Outline of the facility]
LAES System: CryoBattery ™
Capacity: 4.99MW x 4hours Storage (Charging 4MW)
Commercial market:
①Wholesale market: 2MW (minimum load expected)
②Supply and Demand Adjustment Market: 3MW
③Capacity Market: 4.99MW
Commencement of Commercial Operation: 2024 (Plan)
Construction site: 12-20, Mokuzaikou-minami, Hatsukaichi, Hiroshima (Plan)

[Outline of Hiroshima Gas]

(*1) The Liquid Air Storage System consists of three main processes (or functions);
1) Charging: A charging device which uses excess renewable electricity at the off-peak periods to power an industrial liquefier to produce liquified air.
2) Storaging: An energy storage where liquid air is held in an insulated tank at low pressure.
3) Discharging: A power-recovery unit where liquid air is expanded to gas and used to drive a turbine/generator and to generate electricity.

(*2) [Outline of Highview]