A compressed air system energy storage and recovery system has a compressed air tank structured to store compressed air above 200 bars, a heat storage unit containing a heat transfer fluid and having a latent heat storage material, and a heat exchanger. The heat exchanger extracts heat from compressed ambient air above 200 bars for storage and to heat compressed air from the tank above 200 bars prior to expansion and use to recover energy in the air motor. Efficiency of energy storage and heat exchange is improved using pressures above 200 bars.