| Client | Department for Energy Security and Net Zero |
| Project | StrataStore Cheshire Energy Storage Centre Study |
| Sector | Energy Infrastructure |
| Services | FEL2a – Concept Select |
| Location | United Kingdom |
Objective
The StrataStore consortium, led by io consulting in collaboration with Hydrostor and EDF Energy, aimed to assess the feasibility of an Advanced Compressed Air Energy Storage (A-CAES) system at the Hole House site in Cheshire, UK, utilising mothballed gas cavities. The study focused on de-risking the technology, evaluating economic viability, and outlining a development roadmap for both a 5MW test-scale plant, which could power more than 8,000 homes, and a 100MW full-scale facility. (image courtesy of Hydrostor Inc.)
Project Scope
The project was conducted under the UK Government’s Department for Energy Security and Net Zero (DESNZ) Long Duration Energy Storage (LODES) competition and included:
- Technical Feasibility: Design a 5MW First of A Kind (FOAK) isochoric A-CAES demonstrator for investment decision readiness and a 100MW+ isochoric facility design to address technical risks and resolve key decisions.
- Economic Modelling: Assessing revenue streams from UK electricity markets.
- Site Assessment: Evaluating subsurface conditions, grid connection, and planning permissions.
- Risk Mitigation: Identifying barriers to commercialisation, including regulatory and market constraints.
Findings & Recommendations
Findings
- Technical Viability
- Proven A-CAES Technology: The test-scale design was adapted from Hydrostor’s ANGAS facility in Australia, demonstrating a viable design.
- Subsurface Suitability: Geostock SA confirmed the Hole House salt caverns were suitable for A-CAES conversion, with recommended pressure limits to ensure stability.
- Infrastructure & Grid Challenges: The UK grid connection process is slow and costly, potentially delaying project execution.
- Economic Viability
- Current Market Gaps: Existing UK energy markets (Day-Ahead, Capacity Market, Short-Term Operating Reserve) do not sufficiently value long-duration energy storage.
- Revenue Shortfall: Business modelling showed that both the test and full-scale plants require additional revenue streams or government support to be commercially viable.
- Regulatory & Permitting Challenges
- Planning Pathway Uncertainty: The full-scale plant requires a Development Consent Order (DCO), a process estimated to take up to three years.
- Health & Safety Considerations: The project aligns with COMAH regulations, but further engagement with regulatory bodies is needed.
Recommendations
- Technical Viability: Proceed with full-scale plant engineering while optimising grid connection strategies to mitigate delays.
- Economic Viability: Advocate for market reforms that recognise the value of long-duration energy storage and explore alternative revenue sources, such as ancillary grid services.
- Regulatory & Permitting Challenges: Initiate early stakeholder engagement to accelerate approvals and refine permitting strategies.
io Value Add
io consulting played a critical role in optimising the project by:
- Technical Leadership: io consulting provided a robust project development framework, integrating FEED and PreFEED methodologies to de-risk the project.
- Dynamic Performance Modelling: Developed a system model, using io’s emerge tool, to accurately model operational performance, responsive to market actions and confirm round-trip-efficiency.
- Strategic Roadmap: Developed a clear next-step strategy, prioritising full-scale plant progression while navigating regulatory and financial barriers.
The study confirmed the technical feasibility of A-CAES at Hole House but highlighted economic and regulatory hurdles. While the test-scale plant will not proceed due to financial constraints, full scale A-CAES LODES deployment across the UK remains a priority, contingent on market reforms and policy support.
io consulting’s strategic approach ensured that the project is well-positioned to capitalise on emerging opportunities in the UK’s transition to net-zero.
