Evaluating economic feasibility of liquid air energy storage systems in future US electricity markets

Shaylin A. Cetegen, Truls Gundersen and Paul I. Barton

Energy, 2025, vol. 321, issue C

Abstract: Liquid air energy storage is a clean, long-duration grid-scale energy storage technology, capable of providing multiple gigawatt-hours of storage capacity. Its inherent locatability unlocks nearly universal siting opportunities, making it suitable for diverse geographical contexts. While its technical viability is well-established, a comprehensive assessment of its economic feasibility under evolving market conditions is essential to understanding its potential role in the future energy landscape. This study employs a mixed-integer linear programming model to maximize the net present value of liquid air energy storage systems over their lifespan across 18 US regions under eight distinct decarbonization scenarios. This approach yields conservative estimates of economic viability in projected future electricity markets. The results identify Texas and Florida as the most promising markets for deployment and suggest that a levelized cost of storage of approximately $60/MWh is achievable across all decarbonization scenarios, which is significantly lower than literature-reported values for alternative technologies, such as pumped hydro energy storage and lithium-ion battery energy storage. Additionally, sensitivity analyses reveal the influence of technical performance improvements and economic incentives on feasibility and broader adoption. These insights are critical for policymakers and stakeholders aiming to support long-duration energy storage solutions in a decarbonization landscape.

Keywords: Energy storage; Grid-scale energy storage; Liquid air energy storage; Mixed-integer linear programming; Optimization (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544225010898
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:321:y:2025:i:c:s0360544225010898

DOI: 10.1016/j.energy.2025.135447

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().