China breaks ground on the world’s first supercritical CO2 and molten salt energy plant

Ruitan demonstration project in Shandong aims to reduce energy waste and stabilise grid electricity supply2-MIN READ2-MIN2ListenPublished: 1:41pm, 22 Sep 2026China has broken ground on the world’s first utility-scale combined supercritical carbon dioxide power generation and molten salt energy storage project, which could help reduce energy waste and improve grid stability.On September 16, construction began on the Ruitan demonstration project at China-huaneng" class="entity-link entity-organization" data-entity-id="58447" data-entity-type="organization">China Huaneng’s Bajiao power station in Yantai. The project in Shandong province, eastern China, is expected to go into operation next year.During periods when energy demand is low, surplus electricity generated by the plant’s existing coal power units will be used to heat up molten salt, according to a report by state news agency Xinhua on September 16.02:45China leads the world in building clean energy infrastructure, but its power grid can’t keep upDuring hours of peak energy demand, the stored heat will power a supercritical unit that uses carbon dioxide rather than steam to produce electricity.The first phase of the project will feature a 50-megawatt supercritical unit and a 100-megawatt, or 400-megawatt-hour, molten salt energy storage system.Traditional power plants burn fuel such as coal to heat water into steam, which then drives a turbine to produce electricity.In a supercritical system, carbon dioxide is held at a critical temperature and pressure, at which point it behaves like both a gas and a liquid. This dense fluid directly powers a turbine and can recirculate in a closed-loop system.These plants are smaller than traditional units, do not require water, have higher power generation efficiency and produce fewer carbon emissions.