Modelling of a hydro-pneumatic energy storage system is presented in this paper. Hydro pneumatic storage aims to combine the good efficiency of hydraulic energy conversion and the space flexibility of pneumatic storage. The project aims to model a prototype which uses a rotodynamic multi-stage pump-turbine to displace a virtual liquid piston to compress air. To facilitate mass and heat transfers between both phases, there is no separation between the water and the air. A dynamic model of the storage system is developed using block diagram methodology. It takes into account characteristic curves of the pump-turbine and thermodynamic equations. Modelling results show that vapour diffusion contributes to reducing compression final temperature. This implies an increase of storage efficiency. A test rig construction will begin at the end of autumn 2011. It will be electrically connected to the "Distributed Energies" platform of ''Arts et Métiers Paristech'' in Lille.