TL;DR
Airengy and Hagag Europe are investing €55 million to develop a 5 GWh compressed-air energy storage plant in Romania, using Airengy’s proprietary technology. Construction is expected to start in 2027, with commercial operation by early 2028.
Airengy and Hagag Europe have announced a joint project to develop a 5 GWh compressed-air energy storage (CAES) plant in Romania, with commercial operation expected by early 2028. The project involves an investment of approximately €55 million and aims to utilize Airengy’s proprietary AirBattery technology, marking a significant step in long-duration energy storage development in Europe.
The Romanian project will be developed in two phases, with the initial phase adding around 200 MWh of storage capacity at an estimated cost of €4.5 million. The plant will use underground salt caverns for storing compressed air, which is then converted into electricity via a hydraulic turbine during discharge. The total planned capacity is up to 25 MW, with a total storage capacity reaching 5 GWh.
Airengy will handle planning, design, construction, and operation of the plant, while Hagag Europe will secure rights to utilize existing salt caverns and will own 40% of the project through a special purpose vehicle. A third unnamed stakeholder will hold the remaining 20%. Construction is targeted to start in 2027, with commercial operation projected for early 2028, according to Airengy’s VP of Business Development Technologies.
The AirBattery system has been tested on a smaller scale in Israel, with pilot projects of 10 kW and 250 kW capacities. The Romanian project represents a major milestone in commercializing this long-duration storage technology, which is designed to operate with minimal environmental impact and low operating costs, as it uses only water and air without polluting materials or rare metals.
Implications for European Energy Storage Capacity
This project signifies a notable advancement in long-duration energy storage in Europe, addressing the need for grid balancing and renewable energy integration. The use of salt caverns for CAES is a proven method, and the deployment of Airengy’s technology could expand the availability of low-cost, environmentally friendly storage options across the continent. The project’s success may encourage further investments in similar facilities, helping Europe meet its decarbonization targets and enhance energy security.

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Romania’s Salt Caverns and Energy Storage Potential
Romania has a significant number of unutilized underground salt caverns, some with existing grid connections and industrial infrastructure, making it an attractive location for large-scale energy storage projects. The country’s strategic position and energy market dynamics have made it an appealing site for innovative storage solutions like CAES. This project aligns with broader European efforts to develop resilient, flexible energy systems that support renewable energy sources.
Airengy has been active in other European markets, including collaborations in the UK and Germany, evaluating large-scale storage sites. The Romanian project marks an expansion of its operations into Eastern Europe, leveraging local salt cavern resources and Hagag Europe’s infrastructure expansion plans.
“The Romanian salt caverns provide an ideal environment for long-duration CAES, especially with existing infrastructure nearby.”
— an anonymous researcher

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Remaining Questions About Project Timeline and Capacity
Details about the final project capacity, exact timeline of construction, and specific operational milestones remain to be confirmed. It is also unclear how quickly the project can scale beyond the initial phases, or how regulatory and market factors in Romania may influence the development process.

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Next Steps for Project Development and Deployment
Airengy and Hagag Europe are expected to finalize project planning and secure permits in the coming months. Construction is anticipated to commence in 2027, with the first phase delivering around 200 MWh of storage. Monitoring of project milestones and regulatory approvals will be critical to meet the targeted operational date of early 2028.

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Key Questions
What is compressed-air energy storage (CAES)?
CAES is a technology that stores energy by compressing air into underground caverns and releasing it to generate electricity during periods of high demand. It is considered a long-duration storage solution with low environmental impact.
Why is Romania chosen for this project?
Romania offers suitable underground salt caverns with existing infrastructure, making it an attractive location for large-scale CAES. The country’s energy market and decarbonization efforts also support such projects.
When is the project expected to be operational?
Construction is expected to start in 2027, with commercial operation targeted for early 2028, according to Airengy.
How does Airengy’s technology differ from other storage methods?
Airengy’s AirBattery technology uses only air and water, avoiding polluting materials and rare metals. It offers low wear, minimal maintenance, and climate-agnostic operation, making it suitable for long-term use.
What impact could this project have on Europe’s energy grid?
If successful, this project could expand the availability of long-duration storage, helping to stabilize grids with high renewable penetration and supporting decarbonization goals across Europe.
Source: PV Magazine