The global Power-to-Gas Market is estimated to be valued at US$ 33.96 Bn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Power-to-Gas involves the conversion of surplus renewable electric power into gas fuels, such as hydrogen or methane, through electrolysis and methanation. It helps in large-scale storage of renewable energy and its transportation through the existing natural gas infrastructure.
Market key trends:
One of the key trends in the power-to-gas market is the increasing focus on the development of large-scale power-to-gas plants across major economies. For instance, in July 2020, Danish power company Ørsted announced plans to build one of the world’s largest power-to-gas plants in Denmark. The plant will use surplus renewable wind power to produce hydrogen through electrolysis. The hydrogen will then be blended with biogas and fed into the natural gas grid. Such large-scale projects will boost the demand for power-to-gas technologies going forward.
Market key trends:
The Power-to-Gas market is witnessing increasing adoption of renewable energy sources like solar and wind power for producing hydrogen. Power-to-Gas technology allows the conversion and storage of surplus renewable electricity into hydrogen or methane gas by electrolysis. This helps in stabilizing electricity grids by absorbing excess renewable energy that would otherwise go wasted. The production of green hydrogen and methane through this process is likely to help decarbonize industries like transportation, heating and energy storage going forward.
SWOT Analysis
Strength: Power-to-Gas technology provides an efficient mechanism for storage of surplus renewable energy which otherwise goes wasted. It helps in reducing curtailment of renewable power.
Weakness: High capital cost associated with Power-to-Gas plants make the technology expensive compared to other renewable energy storage options. Complex technology requires skilled workforce.
Opportunity: Growing focus on integrating more renewable energy and need for large-scale energy storage presents a huge market opportunity for Power-to-Gas technology. Potential to supply green hydrogen/methane to hard-to-abate sectors like aviation and shipping.
Threats: Competition from other energy storage technologies like batteries which are becoming more cost effective with scaling of production. Uncertain government policies around renewable energy and lack of incentives affecting market development.
Key Takeaways
The global Power-to-Gas Market Size is expected to witness high growth at a CAGR of 12% over the forecast period of 2023 to 2030, surpassing a market size of US$ 33.96 Bn by 2023. The increasing installed renewable energy capacity around the world especially for wind and solar is driving the need for large-scale energy storage solutions. Power-to-Gas provides flexible medium to long-term storage of electricity from renewable sources.
Regional analysis: Europe is currently the dominant as well as the fastest growing regional market for Power-to-Gas technology due to supportive regulatory framework and initiatives by EU to promote renewable energy integrated with flexible storage options. Countries like Germany have actively pursued demonstration projects of Power-to-Gas to stabilize electricity grids with high shares of variable renewable power.
Key players operating in the Power-to-Gas market are Aquahydrex, Inc., MAN Energy Solutions, Electrochaea GmbH, ITM Power PLC, EXYTRON GmbH, Hydrogenics Corporation, Hitachi Zosen Corporation. The market is witnessing investments and collaboration among these players to develop more efficient and affordable Power-to-Gas plants globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
