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.
- 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
- AEG Power Solutions
- Alliander N.V.
- 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
- 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
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa