China Huaneng Group announced on September 16, 2026 that it had broken ground on a demonstration project at the site of the Bajiao Power Plant, operated by Huaneng Shandong Power Generation Co., Ltd. in Yantai, Shandong Province, combining the world’s largest 50MW-class supercritical CO2 (Supercritical Carbon Dioxide) generator with a 100MW/400MWh molten salt thermal storage system. It is reported to be the world’s first demonstration project of a “storage plus generation” model that stores surplus power from existing coal-fired plants in molten salt and later heats supercritical CO2 with the stored heat to regenerate electricity, with commercial operation targeted for 2027.
The project reportedly consists of three components: a molten salt thermal storage system, a supercritical CO2 cycle power generation system, and a steam generation system. The core principle is said to be storing surplus power from existing coal-fired cogeneration facilities as thermal energy in molten salt, then using the stored heat during periods of high power demand to heat and expand supercritical CO2 to drive a turbine for regeneration. This is described as a long-duration energy storage technology distinct from pumped hydro storage or battery energy storage systems (BESS), interpreted as an attempt to enhance the operational flexibility of coal-fired power generation while securing regulating capacity to address renewable energy variability. The specific equipment manufacturer or any overseas technology licensor has not been disclosed.
The supercritical CO2 generator is a single 50MW-class unit, reportedly the largest of its kind in the world. The molten salt thermal storage system is being built at a scale of 100MW/400MWh, corresponding to a storage capacity capable of supplying 100MW of rated output for up to four hours. Construction began on September 16, 2026, with commercial operation targeted for 2027.
The demonstration is regarded as an early step toward commercializing long-duration thermal storage-power generation technology to support operational flexibility of coal-fired power plants and the integration of renewable energy. The supercritical CO2 power cycle is drawing attention as a next-generation power generation technology due to its potential for higher efficiency and a smaller equipment footprint compared with conventional steam turbines.
The combination of molten salt thermal storage and supercritical CO2 power generation is drawing attention as a long-duration energy storage alternative that could compete with pumped hydro storage and lithium-ion battery storage. Because the supercritical CO2 power cycle can significantly reduce turbine size while improving efficiency compared with conventional steam Rankine cycles, it is seen as a technology that could influence equipment development and procurement trends among power generation equipment suppliers. As addressing grid variability from expanding renewable energy becomes a common challenge across the global power generation industry, this project serves as a demonstration case of a model that combines storage infrastructure with existing coal-fired assets, offering a reference case for related EPC firms and suppliers of key equipment such as turbines and heat exchangers. Since supercritical CO2 power generation remains at an early stage of commercialization worldwide, the success or failure of this demonstration is expected to serve as a test bed for gauging whether follow-on orders for similar-scale projects will expand. Storage-integrated power generation models that enhance the operational flexibility of thermal power facilities may also serve as reference models for coal-fired transition projects in other regions.
Whether the targeted 2027 commercial operation date is met is the first point to watch. Whether the actual power generation efficiency and the storage-to-generation conversion efficiency meet design specifications after commercial operation begins is also a key matter requiring confirmation. If the demonstration is successfully validated, the potential for expanded application to other coal-fired power plants in China is drawing attention, and follow-on order activity by related equipment manufacturers and EPC firms also bears watching. The progress of competing projects by other countries and companies developing supercritical CO2 power generation technology is likewise noted as a point of interest.