Commencement of Commercial Operations at LAES Commercial Demonstration Plant
December 12, 2025
Sumitomo Heavy Industries, Ltd.
Hiroshima Gas Co., Ltd.
Sumitomo Heavy Industries, Ltd. (Head office: Shinagawa-ku, Tokyo; Representative Director, President and CEO: Shinji Shimomura; “Sumitomo Heavy Industries”) partnered with Hiroshima Gas Co., Ltd. (Head office: Hiroshima City; President: Tomohiko Nakagawa; “Hiroshima Gas”) to construct a LAES commercial demonstration plant at Hatsukaichi LNG Terminal. The facility started commercial operation on December 1, 2025, and a completion ceremony was held on December 9, 2025.
This facility is the world's first LAES commercial plant designed to improve charging efficiency by utilizing LNG cold energy during the liquefied air generation process. Sumitomo Heavy Industries is responsible for the facility's design, construction, operation, and management, and will work to optimize the facility based on insights gained during commercial operation. Hiroshima Gas will supply the LNG cold energy and work to utilize it effectively, including energy and CO2 savings in the boilers of its own facilities.
Looking ahead to anticipated demand for long-duration energy storage and grid stabilization, Sumitomo Heavy Industries will contribute to stabilizing the supply of electricity and realizing a decarbonized society by providing energy storage facility that contributes to the effective use of renewable energy and the reduction of environmental impact.

| Name | Sumitomo Heavy Industries, Ltd. Hatsukaichi LAES Power Station |
|---|---|
| Location | 11-71 Mokuzaiko-minami, Hatsukaichi City, Hiroshima Prefecture (within Hatsukaichi LNG Terminal) |
| Capacity | 5 MW x 4-hour storage (charging: 4MW) |
| Start of Commercial Operations |
December 1, 2025 |
In LAES, surplus power such as off-peak power and renewable energy is utilized to compress and cool air, liquefying it for storage in tanks. When electricity is needed, the liquefied air is pressurized, vaporized, and heated to drive a turbine generator and supply electricity. It is well-suited for long duration energy storage. It not only helps balance electricity supply and demand but also provides a constant, stable supply of inertia and reactive power, thereby contributing to grid stabilization. In combination with unstable renewable energy generation sources like solar power, it can replace thermal power plants.
[LAES Commercial Demonstration Plant Purpose]
(1) Compliance with laws and regulations in LAES design and construction
(2) Verification of efficiency improvement and energy-saving effects of mutual use of LNG cold heat that has not been used
(3) Responding to and streamlining Japan's grid operation and the power supply and demand market
[LAES Commercial Demonstration Plant Outline]

*The LAES system consists of th¬¬e following three processes.
1) Charging: Off-peak power or surplus power is used to operate air liquefaction facility to generate liquefied air.
2) Energy storage: Liquid air is stored in low-pressure, insulated tanks.
3) Electric discharge: The high-pressure gas generated drives turbines and generators to generate electricity.
