China breaks ground on world's first supercritical CO2 molten salt power plant
Synopsis
Key Takeaways
China has broken ground on the world's first utility-scale facility combining supercritical carbon dioxide power generation with molten salt energy storage, marking a significant milestone in grid-balancing technology. Construction on the Ruitan demonstration project commenced last week at China Huaneng's Bajiao power station in Yantai, Shandong province, eastern China. The facility is expected to become operational in 2027.
How the hybrid system works
The plant's design addresses one of renewable and coal-heavy grid systems' most persistent challenges: the mismatch between energy supply and demand. During off-peak hours, surplus electricity from the station's existing coal power units will be channelled into heating molten salt, effectively storing energy as thermal mass, according to state news agency Xinhua reporting dated September 16.
When demand spikes, that stored heat is redirected to drive a supercritical unit — one that uses carbon dioxide instead of conventional steam as its working fluid. Supercritical CO2 cycles are known to achieve higher thermodynamic efficiency than steam-based systems, potentially reducing energy waste across the generation-storage loop.
Phase one specifications
The first phase of the Ruitan project will feature a 50-megawatt (MW) supercritical CO2 unit paired with a 100 MW / 400 megawatt-hour (MWh) molten salt energy storage system. This scale positions it firmly in utility territory, moving the technology beyond laboratory or pilot-plant status for the first time globally.
The combination of supercritical CO2 power cycles with large-scale molten salt storage has long been theorised as a pathway to more efficient dispatchable power, but no facility of this kind has previously entered commercial-scale construction anywhere in the world.
Why it matters for grid stability
China's electricity grid faces growing strain as the country simultaneously expands variable renewable capacity — solar and wind — while managing baseload coal infrastructure. Energy storage at the scale demonstrated by the Ruitan project can absorb excess generation and release it on demand, smoothing frequency fluctuations and reducing curtailment of clean energy.
The project is operated under China Huaneng, one of China's five major state-owned power generation conglomerates, lending it institutional weight and a credible pathway to broader replication if the demonstration phase proves successful.
The competitive backdrop
Molten salt storage is not new — it has been deployed in concentrated solar power (CSP) plants globally, including in Spain and the United States. However, coupling it with a supercritical CO2 power block rather than a conventional steam turbine represents a distinct technological leap, one that could improve round-trip efficiency and reduce the footprint of future installations.
Several nations, including the United States and members of the European Union, have invested in supercritical CO2 research programmes, but none has yet commissioned a utility-scale combined project of this type.
What's next
With operations targeted for next year, the energy sector will be watching the Ruitan project's performance data closely. A successful demonstration could accelerate the deployment of similar hybrid systems across China's extensive coal fleet — and potentially influence energy storage procurement decisions in markets worldwide where grid flexibility is at a premium.