World's first airbattery to be built in Germany

July 02, 2025

Israel’s Augwind Energy has announced plans to build the world’s first commercial-scale AirBattery energy storage facility in Germany, marking a major breakthrough in the race to decarbonize Europe’s power grids.

The project, slated for commissioning between 2027 and 2028, will use a mined salt cavern to store compressed air and generate electricity, offering storage capacity for weeks or even months.

The facility will be the first industrial-scale deployment of Augwind’s Hydraulic Compressed Air Energy Storage (CAES) system, which combines pumped hydro and traditional air compression technologies.

Breathing room for renewables

Augwind claims its system can deliver multi-week energy resilience using a modular setup that stores compressed air in underground caverns.

A typical cavern, larger than the Empire State Building, can store 3–8 GWh of electricity. When needed, the system releases the high-pressure air through water chambers to drive turbines and generate electricity.

“With the AirBattery, we’re introducing a storage solution that finally matches the scale and rhythm of renewable energy,” said Or Yogev, Founder and CEO of Augwind. “Germany’s redundant salt caverns, industrial leadership, and climate ambition make it the perfect launchpad.”

Germany, which is phasing out coal and nuclear, faces growing risks from “Dunkelflautes”, extended periods of low solar and wind output.

Salt cavern, solid power

Augwind’s AirBattery is designed to act as a buffer during these lulls, absorbing excess renewable energy and dispatching it when needed. Its round-trip efficiency already reached 47 percent at a pilot site in Israel, with expectations to exceed 60 percent in commercial installations.

The technology could help Europe address all three corners of the energy policy triangle, including sustainability, affordability, and security of supply.

By eliminating reliance on imported gas or battery metals, the system reduces geopolitical risks and volatile energy prices, especially relevant after Germany’s energy shock following the Russia-Ukraine war.

The project’s multiweek storage cost per kilowatt-hour of only $10 to $15 positions it as a competitive alternative to battery-based solutions.

Augwind is currently working with utilities, energy traders, and cavern owners in Germany to secure permits and finalize system design.

AirBattery also promises to reduce grid expansion costs. By storing energy closer to Northern Germany’s wind generation hubs, it reduces the need for costly infrastructure to move power southward, where coal and nuclear facilities once dominated.

Unlike lithium-ion batteries, AirBattery is built with local materials, runs in a closed water system, and offers nearly unlimited storage duration, limited only by the size of the cavern. German engineering firm Fichtner Group has validated the system’s performance and economic feasibility.

If successful, the German installation could become a blueprint for similar projects across Europe by 2030, helping stabilize grids as renewable penetration increases beyond 50 percent.