# Liquid air storage: Economics

Why first plants are costly and revenue is still uncertain

Source page: https://www.materialinsights.org/energy/e_liquid_air/sg-econ/

What this tab covers Economics and financial structure: capital versus operating cost, levelised cost of storage, and how the asset earns money.

Capital costs are high at first-of-a-kind scale and private returns are thin; Highview's large UK projects missed Ofgem's June 2026 cap-and-floor shortlist, leaving their revenue route unclear.

#### Capex versus opex
Mixed

Carrington's construction was triggered by a GBP 300 million round from the UK Infrastructure Bank and Centrica, about GBP 1,000 per kWh or GBP 6,000 per kW if all of it goes to the plant (calculated, an upper bound). Highview has raised over GBP 500 million in total, including GBP 130 million in November 2025 for Hunterston's first phase, and has outlined a GBP 2 billion plan for 6.4 GWh by 2030, about GBP 310 per kWh (calculated), a plan that assumed cap-and-floor support for Hunterston and Killingholme. Opex covers machinery maintenance; there are no stack or cell replacements.^[1](https://www.thechemicalengineer.com/news/energy-stored-as-liquefied-air-300m-investment-triggers-construction-of-uk-s-first-commercial-scale-plant/)^[6](https://www.powermag.com/highview-powers-two-uk-laes-projects-advance-in-ofgems-cap-and-floor-scheme/)^[7](https://www.businesswire.com/news/home/20251110590267/en/Highview-Surpasses-Half-a-Billion-Pounds-of-Funding-With-Latest-%C2%A3130M-Capital-Raise-for-Phase-One-of-Long-Duration-Energy-Storage-Facility-at-Hunterston-Ayrshire)
 Carrington funding GBP 300 million for 300 MWh (about GBP 1,000/kWh, calculated)^[1](https://www.thechemicalengineer.com/news/energy-stored-as-liquefied-air-300m-investment-triggers-construction-of-uk-s-first-commercial-scale-plant/) Highview roll-out plan GBP 2 billion for 6.4 GWh (about GBP 310/kWh, calculated)^[6](https://www.powermag.com/highview-powers-two-uk-laes-projects-advance-in-ofgems-cap-and-floor-scheme/) Total raised over GBP 500 million (Nov 2025)^[7](https://www.businesswire.com/news/home/20251110590267/en/Highview-Surpasses-Half-a-Billion-Pounds-of-Funding-With-Latest-%C2%A3130M-Capital-Raise-for-Phase-One-of-Long-Duration-Energy-Storage-Facility-at-Hunterston-Ayrshire)

#### Levelised cost of storage
Mixed

An MIT and NTNU study in Energy (2025) estimated about USD 60 per MWh across US decarbonisation scenarios, roughly a third of lithium-ion and half of pumped hydro on its assumptions, but found the net present value negative in most cases without subsidy. A 2025 benchmarking study in the Journal of Energy Storage found a standalone liquid air plant unviable in every location modelled and beaten by batteries; it needed a CO2 price above about 300 per tonne (EUR, as reported) to compete with a gas-fired variant. The gap between these results reflects different price and revenue assumptions.^[5](https://www.thechemicalengineer.com/news/liquid-air-could-be-cheapest-method-for-long-term-energy-storage-researchers-predict/)^[13](https://doi.org/10.1016/j.est.2024.114800)
 LCOS (MIT/NTNU, 2025) about USD 60/MWh^[5](https://www.thechemicalengineer.com/news/liquid-air-could-be-cheapest-method-for-long-term-energy-storage-researchers-predict/) CO2 price for standalone LAES to match gas-fired variant (2025 study) above about EUR 300/t^[13](https://doi.org/10.1016/j.est.2024.114800)

#### Revenue stack and market participation
Mixed

Plants can earn from arbitrage, capacity payments and, because of their synchronous turbines, inertia and voltage support; Highview's Hunterston phase one is a stability island, due January 2028 per its November 2025 release (2027 on its website), that earns before any storage is built. In Great Britain, Ofgem's cap-and-floor scheme, launched in April 2025, guarantees a revenue floor and caps upside. Hunterston and Killingholme passed its eligibility stage among 77 projects, but Ofgem's June 2026 minded-to list of 16 projects (7,645 MW) left both out after they scored below the bar on financial assessment; the final decision follows consultation.^[6](https://www.powermag.com/highview-powers-two-uk-laes-projects-advance-in-ofgems-cap-and-floor-scheme/)^[7](https://www.businesswire.com/news/home/20251110590267/en/Highview-Surpasses-Half-a-Billion-Pounds-of-Funding-With-Latest-%C2%A3130M-Capital-Raise-for-Phase-One-of-Long-Duration-Energy-Storage-Facility-at-Hunterston-Ayrshire)^[10](https://highviewpower.com/faqs/)^[15](https://consult.ofgem.gov.uk/energy-generation/ldes-window-1-minded-to-decision/supporting_documents/window-1-minded-to-decisions-long-duration-electricity-storage-consultationpdf)
 Cap-and-floor projects past eligibility 77^[6](https://www.powermag.com/highview-powers-two-uk-laes-projects-advance-in-ofgems-cap-and-floor-scheme/) Minded-to list (June 2026) 16 projects, 7,645 MW; no liquid air project^[15](https://consult.ofgem.gov.uk/energy-generation/ldes-window-1-minded-to-decision/supporting_documents/window-1-minded-to-decisions-long-duration-electricity-storage-consultationpdf) Highview projects as assessed 2 x 300 MW, 8 h hybrids (Hunterston, Killingholme)^[15](https://consult.ofgem.gov.uk/energy-generation/ldes-window-1-minded-to-decision/supporting_documents/window-1-minded-to-decisions-long-duration-electricity-storage-consultationpdf)

#### Sources

1. [Energy stored as liquefied air: GBP 300m investment triggers construction of UK's first commercial-scale plant](https://www.thechemicalengineer.com/news/energy-stored-as-liquefied-air-300m-investment-triggers-construction-of-uk-s-first-commercial-scale-plant/) The Chemical Engineer (IChemE), 2024
2. [Liquid air could be cheapest method for long-term energy storage, researchers predict](https://www.thechemicalengineer.com/news/liquid-air-could-be-cheapest-method-for-long-term-energy-storage-researchers-predict/) The Chemical Engineer (IChemE), 2025
3. [Highview Power's two UK LAES projects advance in Ofgem's cap-and-floor scheme](https://www.powermag.com/highview-powers-two-uk-laes-projects-advance-in-ofgems-cap-and-floor-scheme/) POWER Magazine, 2025
4. [Highview surpasses half a billion pounds of funding with latest GBP 130M capital raise for phase one at Hunterston](https://www.businesswire.com/news/home/20251110590267/en/Highview-Surpasses-Half-a-Billion-Pounds-of-Funding-With-Latest-%C2%A3130M-Capital-Raise-for-Phase-One-of-Long-Duration-Energy-Storage-Facility-at-Hunterston-Ayrshire) Highview Power via Business Wire, 2025
5. [FAQs](https://highviewpower.com/faqs/) Highview Power (company website), 2026
6. [Benchmarking of liquid air energy storage with and without added firing against batteries and gas-fired power plants (Arnaiz del Pozo, Jimenez Alvaro and Cloete, Journal of Energy Storage 106, 114800)](https://doi.org/10.1016/j.est.2024.114800) Elsevier (Journal of Energy Storage), 2025
7. [Long Duration Electricity Storage cap and floor Window 1: minded-to decisions (consultation)](https://consult.ofgem.gov.uk/energy-generation/ldes-window-1-minded-to-decision/supporting_documents/window-1-minded-to-decisions-long-duration-electricity-storage-consultationpdf) Ofgem, 2026

## Other sections

- [Summary](https://www.materialinsights.org/energy/e_liquid_air/index.md)
- [Overview](https://www.materialinsights.org/energy/e_liquid_air/overview/index.md)
- [Correlation](https://www.materialinsights.org/energy/e_liquid_air/correlation/index.md)
- [Science and technology](https://www.materialinsights.org/energy/e_liquid_air/sg-sci/index.md)
- [Engineering and performance](https://www.materialinsights.org/energy/e_liquid_air/sg-eng/index.md)
- [Impact and additionality](https://www.materialinsights.org/energy/e_liquid_air/sg-impact/index.md)
- [What to track](https://www.materialinsights.org/energy/e_liquid_air/tracking/index.md)
- [Relationships](https://www.materialinsights.org/energy/e_liquid_air/links/index.md)