Energy storage technologies

From lithium-ion batteries to pumped-storage hydropower plants to hydrogen storage, each of these energy storage technologies is used in a variety of industries. Choosing the right solution depends on the energy needs, production scale, and sustainability strategy of the company. In this article, we will explain how the different technologies work and where they perform best.

How does energy storage work?

Energy storage involves storing surplus energy during periods of low demand and then releasing it when demand increases. These systems operate on various principles, from mechanical to chemical to thermal, depending on the chosen technology. The primary goal of storage is to provide flexibility in energy supply, especially when combined with intermittent energy sources such as wind farms and photovoltaic installations.

Renewable energy is characterized by variability—it is produced depending on weather conditions, leading to fluctuations in grid power availability. Energy storage plays a key role in this process, allowing surplus energy to be stored during periods of overproduction (e.g., on windy or sunny days) and released when demand exceeds current production. This enables companies to avoid purchasing energy during expensive peak periods, leading to significant savings.

What is energy storage used for?

Energy storage has many applications in industry:

  • Grid stabilization – helps smooth out fluctuations in energy supply, especially in regions with a high share of renewable energy.
  • Cost reduction – companies can store energy when the price is low and use it when it becomes more expensive.
  • Energy reserve – acts as a backup power source during grid outages, which is crucial for industrial plants where production continuity is essential.
  • Emission reduction – supports CO₂ emission reduction when integrated with renewable energy sources, helping companies achieve net-zero emissions goals.

Energy storage technologies

Depending on their needs, budgets, and production specifics, companies can choose from a variety of energy storage technologies.

Lithium-ion batteries (Li-ion)

How do lithium-ion batteries work?

Lithium-ion batteries store energy chemically, converting it into electrical energy through reactions between electrodes and lithium ions. This is currently the most widely used technology, particularly in the electromobility sector.

Advantages:

  • High energy density,
  • Fast charging and discharging,
  • Long service life.

Where this technology proves useful:

  • Electric vehicles,
  • Energy storage for renewable energy sources,
  • Powering devices like forklifts.

Pumped-storage power plants

How do pumped-storage power plants work?

These systems use mechanical methods to store energy by pumping water into higher-level reservoirs during periods of excess energy and releasing it to power turbines when needed.

Advantages:

  • High efficiency,
  • Large storage capacity.

Where this technology is best suited:

  • Mountainous regions with natural altitude differences,
  • Industrial plants with high energy demand, especially those operating continuously.

Flow batteries

How do flow batteries work?

Flow batteries store energy in two electrolyte tanks. The electrolytes flow through a chamber where chemical reactions generate electricity.

Advantages:

  • Scalability,
  • Long-term energy storage.

Where this technology proves useful:

  • Companies with irregular energy demand,
  • Industrial networks requiring large-scale energy management.

Supercapacitors

How do supercapacitors work?

Supercapacitors store energy electrostatically. While their capacity is smaller than batteries, they charge and discharge quickly.

Advantages:

  • Rapid charge/discharge times,
  • Long life and resistance to cycles,
  • Operability across a wide temperature range.

Where this technology proves useful:

  • Electric vehicle power supplies,
  • Systems requiring rapid energy flow.

Compressed air energy storage (CAES)

How does CAES work?

Electricity compresses air stored in underground tanks. When needed, the air expands, driving turbines to generate power.

Advantages:

  • High storage capacity,
  • Use of natural geological formations,
  • Low energy loss during storage.

Where this technology proves useful:

  • Large-scale energy stabilization, especially in areas with suitable geological features like salt caverns,
  • Plants needing additional energy during peak demand.

Thermal energy storage

How does thermal energy storage work?

Thermal energy is stored in materials like molten salts or water. It can later generate electricity or be used directly for heating.

Advantages:

  • High efficiency,
  • Flexibility,
  • Integration with renewable energy sources.

Where this technology proves useful:

  • Processes requiring large heat volumes, e.g., in steelworks and cement plants,
  • Heating and cooling systems.

Applications in various industries

Energy storage is widely used across multiple sectors:

Heavy industry

In metallurgy, cement plants or refineries, where energy consumption is huge, energy storage allows for demand management and cost optimization. Systems based on lithium-ion batteries or hydrogen can support production continuity and reduce CO₂ emissions.

Chemical industry

Storing energy in flow batteries or Power-to-Gas systems can revolutionize chemical processes. Hydrogen, a fuel with high energy density, can support energy-intensive industrial processes.

Food industry

In food production plants, where processes are often energy-intensive and power outages can lead to serious losses, energy storage can play a key role. The use of lithium-ion batteries or compressed air energy storage systems (CAES) can protect against power outages and optimize energy costs during periods of peak demand.

Pharmaceutical industry

In pharmaceutical manufacturing plants and laboratories, precise control over production processes requires a continuous and reliable supply of energy. Energy storage, especially in the form of lithium-ion batteries, can protect against power outages and stabilize power systems for precision equipment such as pharmaceutical mixing and packaging machines.

Logistics and warehousing

These sectors are increasingly using automation, which is leading to an increase in energy demand. Energy storage can provide power to autonomous warehouse vehicles, automated sorting systems and cold stores. In warehouses with variable energy demand, technologies such as supercapacitors or lithium-ion batteries can significantly increase efficiency.

Paper industry

Paper production is one of the most energy-intensive industrial processes. Energy storage can be key to stabilizing power supplies, especially where large production machines need to operate continuously. Flow batteries can be a suitable solution, due to their scalability and ability to store large amounts of energy for extended periods.

Automotive sector

Energy storage in automotive manufacturing plants, especially electric vehicles, is becoming increasingly important. Energy storage systems based on lithium-ion batteries can support production during power outages and also enable electric vehicles to be charged directly at factories. Furthermore, surplus energy from renewable sources can be stored and used in the future, reducing the carbon footprint of production plants.

Mining

In the mining industry, energy storage can help reduce operating costs and increase efficiency. In regions with limited access to the power grid, energy storage can ensure the continuity of mining and transport machinery. Compressed air energy storage (CAES) or flow batteries can store energy produced by local renewable sources such as wind farms or photovoltaic farms.

Textile industry

Textile manufacturing plants can use energy storage systems to minimize losses due to power outages and market price volatility. By storing energy during periods of low cost, it can be used efficiently in the production of clothing, fabrics and other materials.

In summary, energy storage technologies are important in the industrial energy transition. Selecting the right system depends on plant needs and sustainability strategies. With the rise of renewables and growing industrial demand, efficient storage systems are becoming indispensable for sustainable and cost-effective operations.