A compressed air energy storage (CAES) power station utilizing two underground salt caverns in Yingcheng City, central China's Hubei Province, was successfully connected to the grid at full capacity on Thursday, marking its official commencement of commercial operations. The project, also called Nengchu-1, utilizes the caverns of an abandoned salt mine, about 600 meters deep, as its gas storage facility. This approach creates a super "power bank" with a single unit power output of up to 300 megawatt, a storage capacity of 1,500 megawatt-hours, and an underground gas storage volume of 700,000 cubic meters, according to China Energy Engineering Corporation (CEEC), one of the project's major investors. The single unit power, energy storage capacity and conversion efficiency of this project, which broke ground in 2022, has set three world records among similar salt cavern CAES power plants, the company said. "Nengchu-1 stands out with ten features, including high power, large capacity, deep energy storage capacity, strong grid-forming capacity, and being complete green, reliable and safe. We have opened up a new track and path, and solved key technological bottlenecks as well. In the next step, we will make comprehensive plans focusing on higher efficiency, lower cost, larger-scale deployment, and broader application scenarios," said Song Hailiang, chairman of the CEEC. The principle of CAES in salt caverns is similar to that of conventional pumped storage power plants. During periods of low electricity demand, electrical energy is used to compress air and store it in underground salt caverns. The compressed air can then be released during periods of peak demand to generate electricity, experts explained. "After the CAES was put into use in Yingcheng, it can store energy for eight hours and release energy for five hours every day, with its conversion efficiency reaching almost 70 percent. It is estimated to generate an annual average of approximately 500 million kilowatt-hours of electricity, which can meet the annual power demand of 750,000 residents in Yingcheng," explained Yang Xuan, deputy chief engineer at Hubei Electric Power Dispatching and Control Center of State Grid. Utilizing the existing cavities not only mitigates geological hazards such as land subsidence and collapse in the salt mines, but also transforms the mined-out areas into valuable underground resources, said experts, thus effectively turning waste into treasure.
Song also poined out that the initiative will serve as a strong driving force for the construction of a new energy system and modern power grid in China, significantly aiding the country's transition toward a green, low-carbon future.
World's first 300-MW compressed air energy storage station fully operational in China
An industry observer said that 2026 is poised to be a "year of sequels and cultural stories" in global animation, following a strong 2025 where such films dominated box offices worldwide.
With heavyweights like Toy Story 5, Minions 3, and China's perennial favorite Boonie Bears set for release, along with culturally rooted productions such as The Three Kingdoms: War 1 Luoyang, the coming months are expected to draw large audiences and reinforce animation's central role in cinema.
This optimism is built on a solid foundation from the previous year.
Looking back at China's film market in 2025, animated features emerged as a powerful driving force. Four of the year's top 10 highest-grossing films were animations, three of which were domestic productions.
Total animation revenue exceeded 25 billion yuan (around 3.58 billion U.S. dollars), capturing nearly 50 percent of the annual box office. As the new year unfolds, the animation sector continues to shine with promising highlights.
A key trend driving this momentum is the surge of sequels from major franchises.
"One notable trend is the abundance of sequels to classic animated films, particularly from Hollywood. Several iconic series are releasing new installments, making 2026 a year of animated sequels. Given their strong IP foundation, these sequels are expected to attract more audiences' attention and achieve solid box office results," said Hu Jianli, secretary general of the Chinese Film Critics Society.
Alongside these international sequels, domestic animation IPs are also deepening their influence and expanding their reach. The annual Boonie Bears series will welcome its latest installment, while the popular TV series The Immortal Ascension is set for its big-screen debut.
"It's fair to say that the Boonie Bears series has maintained the most consistent quality among domestic animated film franchises over the years. Its expansion from television to movies, merchandise, and theme parks represents a fully developed industrial chain, greatly strengthening the IP's presence in the public consciousness. As for The Immortal Ascension, it's the first time that the animation IP is adapted for the big screen, which naturally generates exceptional attention—especially following the successful live-action web series last year. If this first animated film adaptation succeeds, it has the potential to become a major film IP in its own right," said Hu.
Beyond the reliance on established franchises, another significant creative trend is the growing number of animated films drawing inspiration from China's rich classical literature and historical epics. This approach aims to connect with audiences through deeply rooted cultural narratives.
A leading example is a prominent Chinese animation studio Light Chaser Animation's upcoming "The Three Kingdoms: War 1 Luoyang", which dramatizes the early power struggles from the famed historical period.
"We are seeing a clear increase in animated films adapted from classic Chinese novels and myths. Light Chaser Animation Studios' 'New Culture Series' has performed exceptionally well in our animated film market—for example, 30,000 Miles from Changan earned over 1.8 billion yuan (around 257.98 million U.S. dollars) at the box office. This series has truly succeeded in creatively transforming and innovatively developing China's outstanding traditional culture for the big screen, while also resonating emotionally with today's young audiences through its storytelling and character adaptations," said Hu.
Beyond sequels and adaptations rooted in traditional culture, original animated films are also carving out their space with unique concepts and distinctive styles, showcasing further creative possibilities.
Titles such as Arco, a 2025 animated science-fantasy film, and Pixar's Hoppers exemplify this trend of innovation.
"I believe animated films will remain a major force in the global box office in 2026. The worldwide top-grossing film of 2024 was Inside Out 2, and in 2025 it was China's Ne Zha 2. So I'm confident that animated films will once again rank among the highest-grossing releases globally this year," Hu said.
Animated films set to dominate 2026 global box office with strong lineup
