MIT-Led Study Finds Liquid Air Energy Storage a Promising Low-Cost Grid Solution

A new study by researchers from MIT and the Norwegian University of Science and Technology (NTNU) identifies liquid air energy storage (LAES) as a highly promising and potentially low-cost solution for long-duration energy storage in future carbon-free power grids.

As grids increasingly rely on intermittent renewable sources like solar and wind, the need for scalable, reliable storage becomes critical. LAES works by drawing in ambient air, cooling it to a liquid state using surplus electricity, storing it in insulated tanks, and later reheating it to drive turbines and regenerate electricity when needed. The process emits no pollutants and uses only air and electricity, making it one of the cleanest storage options available.

Funded by the MIT Energy Initiative’s Future Energy Systems Center, the team developed a model simulating LAES viability under eight decarbonization scenarios across 18 U.S. regions through 2050. Findings revealed that LAES could be economically viable in select regions like Texas and Florida—especially under aggressive climate targets.

One key advantage of LAES is its flexibility: it can be deployed almost anywhere and leverages commercially available components without relying on rare or expensive materials. Co-location with industrial processes could also enhance efficiency by using available waste heat or cold.

While current economics may not yet fully favor the technology, the study found that capital subsidies of 40–60% could make it viable under realistic scenarios. With a levelized cost of storage (LCOS) around $60/MWh, significantly lower than lithium-ion or pumped hydro, LAES may soon become a cornerstone of resilient, sustainable energy systems.

The study is published in the journal Energy.