From the Clean Energy File -
In traditional compressed-air facilities, off-peak electricity (from wind turbines, for example) is used to pump air underground for storage. During peak-demand times, the air is released to make electricity. The storage is done underground, in caverns or salt domes.
SustainX proposes storing compressed air in surface tanks, and to make the storage and release much more efficient, with less energy loss.
More information and pictures here:
http://news.cnet.com/8301-11128_3-10396756-54.html
http://www.npr.org/2013/03/01/173136713/energy-start-up-banks-on-compressed-air-over-batteries
http://www.sustainx.com/
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