Power to Gas Market: Introduction

  • The power-to-gas technology (also known as power to gas, P2G, and PtG) adopts the electrolysis process to produce hydrogen gas from renewable or excess electricity available
  • The first step in the process is to produce synthetic hydrogen (H2) from water and renewable power via electrolysis. This hydrogen can be used directly as a final energy carrier or converted to methane, synthesis gas, electricity, liquid fuels, or chemicals through the second stage process. Under the second stage process, the hydrogen reacts with carbon dioxide to produce methane.
  • Power to gas system is an effective way of integrating renewables sources with power generation sources. Their aim is to store energy for long term by converting it to other easily storable energy carriers, and at the same time reducing the load on the electricity grid by controlling operations.
  • The converted hydrogen and methane can also be converted back into electricity as per requirements

Key Drivers of Power to Gas Market

  • Global demand for electricity is expected to increase due to growth in population and economy of countries around the world. Companies are seeking cost efficient and more effective methods of energy generation. They are also looking for methods of electricity generation that do not have any adverse effect on the environment. The power to gas technology can effectively integrate renewable energy sources such as wind and solar, and store that energy for a considerable period of time. The power to gas technology has no adverse effect on the environment, as it does not lead to emission of harmful gases.
  • Growth in the transportation sector, rise in household and industrial usage of energy, and increase in production of chemicals are key drivers of the power to gas market. Decrease in capital expenditure (capex) costs for electrolysis process is expected to be one of the major indicators of the increase in usage of the power to gas technology.
  • The usage of hydrogen and methane in various industries and ability of these gases to reconvert the electricity are also driving the power to gas market

Key Restraint of Power to Gas Market

  • Around 20% to 30% of energy is lost after the first step of the electrolysis process. After the second step of methanation, around 40% to 50% energy is lost. Thus, loss of energy can act as a major restraint of the power to gas market.

Covid-19 Impact on Power to Gas Market

  • The COVID-19 pandemic has had a severe impact on the power to gas market. There is significant drop in demand in the global gas market. Chemical production, transportation, and industrial production industries were hampered for around four to six months due to the COVID-19 pandemic. The current expansion plans of electrolysis and methanation are expected to get delayed by minimum one year. In the long term, the pandemic may prove beneficial to the power to gas market. Global governments would focus on green gas and reduction of harmful emissions into the environment.

Latest Developments

  • The Hydrogen Council, a CEO-led Initiative of 92 global companies to develop the hydrogen economy, has published report on January 19, 2021 that says that low carbon hydrogen supply at scale is economically and environmentally feasible.
  • ThyssenKrupp AG is setting up a new facility in Varennes, Québec, Canada, with an aim to generate 11,100 metric tons of green hydrogen per year
  • On  January 13, 2021, Linde PLC Company announced that it will build the world’s largest electrolyzer plant by the third quarter of 2022
  • According to the EU member states, the target for complete hydrogen mobility is expected to be completed by 2030. Majority of hydrogen required is anticipated to be supplied by power-to-gas companies.           

Global Power to Gas Market: Regional Outlook

  • Based on region, the global power to gas market can be classified into North America, Latin America, Europe, Middle East & Africa, and Asia Pacific
  • India and China are expected to drive the market in Asia Pacific. The forecast is dependent on government policies of these countries and economic recovery from the pandemic.
  • The Pan-European energy system is facing the challenge of lowering carbon emissions from electricity supply to nearly zero by 2050. This is in line with the need to integrate large amount of renewable energy sources (RES), primarily wind and solar power. Europe is expected to be one of the major regions of the global power to gas technology in the near future.
  • North America is also expected to be a key region of the global power to gas market

Key Players Operating in Global Market

Key players operating in the global power to gas market include:

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

Global Power to Gas Market: Research Scope

Global Power to Gas Market, by Technology

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

Global Power to Gas Market, by End-use Industry

  • Industrial
  • Transportation
  • Chemical Production
  • Home Heating

Global Power to Gas Market, by Application

  • Wind Power to Gas
  • Solar Power to Gas
  • Biomass Power to Gas

Global Power to Gas Market, by Region

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

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Power To Gas Market