Power-to-gas: Introduction

  • Power-to-gas, also known as P2G, is a technology that converts electrical power to gas fuel primarily through the electrolysis process
  • Power-to-gas systems may be deployed as alternatives to wind parks or solar-electric generation systems. The excess power or off-peak power generated by wind generators or solar arrays is then used at a later time for load balancing in the energy grid.
  • P2G involves low- or high-temperature electrolysis of water to produce hydrogen, either as a final product injected into the gas grid, or directly fueling applications (e.g., industrial, mobility, and power or water production).
  • The produced hydrogen can also be used as an intermediate product, which is then converted into either synthetic natural gas (SNG) or syngas via methanation with carbon dioxide. Sources of carbon dioxide are fossil fuels or industrial effluents.
  • Various fuels can be generated through the power-to-gas technology. Methane is the primary fuel generated through the power-to-gas technology.

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Key Drivers of Power-to-gas Market

  • Power-to-gas is mainly integrated in the energy value chain of industrial or small-scale power facilities or other distributed installations
  • Global demand for energy has led to the exploration of new sources of energy. The power-to-gas technology is a corresponding source for fuel generation. It also helps in reducing environmental emission of gases. This factor is expected to drive the global power-to-gas market.
  • Almost half a million villages and towns across the globe are without reliable and affordable electricity. Power-to-gas can be deployed into a specific regional or nation-wide energy system with the additional objective to stabilize the grid in order to mitigate the effects of excess electricity caused by a substantial share of fluctuating sources (generally, renewables) and improve the security of energy supplies. Such benefits are expected to drive consumer preference for this technology, thereby driving the power-to-gas market.
  • Global annual consumption of renewables is expected to increase by 2.6% from 2012 to 2040, according to an Environmental Impact Assessment (EIA) report. Thus, renewables are becoming the fastest-growing energy sources for electricity generation. Depleting fossil fuels, climate change, and energy security issues are prompting transformations in energy strategies worldwide. Thus, adoption of new resources of energy is the major factor boosting the global power-to-gas market.

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Key Developments

  • In February 2019, the board members of Open Grid Europe (OGE) announced that the OGE together with Amprion plans to build a 100MW power-to-gas plant capable of converting renewable energy output into hydrogen. The project would be built at an intersection of the operators’ networks in Lower Saxony, Northwest Germany. It is expected to be operational by 2023.
  • Gas grid operators in the European Union plan to build up to 17 renewable power-to-gas projects by 2025 as part of efforts to cut CO2 and keep their grids in use as the EU moves away from natural gas
  • In March 2017, Hydrogenics entered into an agreement with Wind to Gas Südermarsch in Germany to deliver a 2.4 MW PEM power-to-gas system for hydrogen production. This 2.4 MW facility is estimated to significantly help reduce emissions using renewable hydrogen.

Asia Pacific Expected to Hold Major Share of Global Power-to-gas Market

  • Based on region, the global power-to-gas market can be classified into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
  • Europe is expected to hold major share of the global power-to-gas market during the forecast period. Power-to-gas technology is expected to play a significant role in stabilizing the region’s energy supply and offsetting fluctuating power generation from sources of renewable energy. Demand for power-to-gas technology has been rising significantly in Germany.
  • The European Union (EU) has already taken lead in renewable deployment, with a target of 20% renewables in its overall energy consumption by 2020. Furthermore, the EU countries aim to increase the target to 27% by 2030. Based on the EU Reference Scenario 2016, the share of net renewable electricity generation is projected to rise to 37%, 43%, and 53% by 2020, 2030, and 2050, respectively.
  • North America is also an important region of the global power-to-gas market. Demand for power-to-gas in the region is driven primarily by the rise in demand for hydrogen for commercial applications such as fuel cell transportation and stabilization of the power generation capacity.
  • Asia Pacific is likely to be the key potential region of the global power-to-gas market during the forecast period. Increase in number of small and mid-scale industries in the region as well as urbanization, especially in developing countries such as China and India, are projected to be key drivers of the market in the region.

Key Players

Major players operating in the global power-to-gas market include:

  • ITM Power
  • McPhy Energy S.A.
  • ThyssenKrupp AG
  • Electrochaea GmbH
  • Hydrogenics
  • TKI Gas
  • AEG Power Solutions
  • Solarplaza
  • ZSW
  • Alliander N.V.
  • Energinet.dk
  • DNV GL
  • E.ON SE
  • Dominion

Global Power-to-gas Market: Research Scope

Global Power-to-gas Market, by Technology

  • Electrolysis (Hydrogen Gas)
  • Methanation (Methane Gas)

Global Power-to-gas Market, by Application

  • Industrial Use
  • DG or Central Power Plant
  • Gas Filling Stations
  • Home Heating
  • Others

Global Power-to-gas Market, by Type

  • Wind Power-to-Gas
  • Solar Power-to-Gas
  • Biomass Power-to-Gas
  • Other Industrial Processes

Global Power-to-gas Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Sweden
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

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