CH ENERGY ENG(03996): Hubei Yingcheng 300MW Compressed Air Energy Storage Power Station Demonstration Project Fully Connected to the Grid for Power Generation

CH ENERGY ENG (03996) Announcement: According to the company's strategic planning, the company relies on strong energy technology and standard-setting capabilities, system integration and technological innovation advantages, full industry chain and system-solving capabilities, focusing on new quality productivity, actively creating a new energy storage technology source. In 2021, the company independently developed the "300MW Compressed Air Energy Storage System Solution" and invested in the construction of the world's first demonstration project with a single machine power of 300MW for compressed air energy storage. The project has now achieved full capacity grid-connection power generation and entered a stable commercial operation phase. The specific details are as follows: The 300MW Compressed Air Energy Storage Demonstration Project in Yingcheng, Hubei Province ("Yingcheng Compressed Air Energy Storage Demonstration Project" or "the Project") is jointly invested by the company's subsidiary, CNE Digital Technology Group Co., Ltd., and State Grid Hubei Comprehensive Energy Service Co., Ltd. The project started construction in July 2022 and includes the construction of a set of 300MW/1500MWh compressed air energy storage power generation units and supporting facilities, with a 25-year operating period. The project has a maximum energy storage scale of 1500 MWh, a conversion efficiency of nearly 70%, can store energy for 8 hours a day and discharge energy for 5 hours, and generates approximately 500 million kWh of electricity annually. The Yingcheng Compressed Air Energy Storage Demonstration Project is the world's first 300MW-level non-reburning compressed air energy storage project, utilizing the abundant salt cavern resources in Yingcheng, Hubei Province to build a globally pioneering, fully green, non-reburning, and highly efficient 300MW compressed air energy storage project. The compressed air energy storage plant compresses air using electricity during low periods of the grid, stores the high-pressure compressed air in salt caverns, and releases the compressed air during high-demand periods, driving generators to generate electricity for the grid. The project greatly enhances the regional grid's capacity to accommodate new energy sources and helps in building a new type of local power system. The project is a landmark project and practice for the company to achieve carbon neutrality goals, establish a new energy system, integrate technological and industrial innovation, and is the world's largest, most efficient, and longest-operating pure green compressed air energy storage project. On April 9, 2024, the Yingcheng Compressed Air Energy Storage Demonstration Project successfully completed its first grid-connected trial operation, with all systems running stably and parameters meeting design and construction goals. As of January 9, 2025, the underground gas storage of the project has a capacity of nearly 700,000 cubic meters, achieving full capacity operation of the compression side and full power grid connection generation on the discharge side. Currently, the Yingcheng Compressed Air Energy Storage Demonstration Project has been included in the national NDRC Green Low-Carbon Advanced Technology Demonstration Project, the National Energy Administration's New Energy Storage Pilot Demonstration Project, and the Hubei Province New Energy Storage Plant Pilot Demonstration Project, as well as other national and provincial key demonstration projects. It has been included in the first batch of projects list of the State-owned Assets Supervision and Administration Commission of the State Council's Central Enterprises Technology Application Expansion Project, the third batch of major energy equipment projects list of the National Energy Administration, and was awarded the top ten energy industry technological innovation achievements in 2023. It is included in the key construction project library of Hubei Province. At the same time, the project has achieved 100% localization of key core equipment and deep underground space utilization technology products, filling multiple international gaps, with a total of over 200 patents, proprietary technologies, and standard specifications. In the future, the company will continue to promote technological innovation in the direction of higher efficiency, lower cost, and larger scale for compressed air energy storage, better meeting the needs of new power systems and maintaining a leading position in the energy storage field.