by The 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 technology involves the conversion of electrical power from renewable energy sources like wind and solar into a gas fuel, using electrolysis to break down water into hydrogen and oxygen. The hydrogen can then be used directly or further processed with carbon dioxide to synthetic methane or liquid fuels. This allows the storage of excess and fluctuating renewable energy in the form of gas. The power-to-gas process provides long term and large scale energy storage solutions which helps in managing the intermittency issue associated with renewable power sources.
Market Dynamics:
One of the major drivers for the power-to-gas market is the growing renewable energy sector and the need for energy storage techniques. With increasing share of renewable energy in the overall energy mix, need for energy storage solutions is rising to balance renewable power generation with demand. Power-to-gas technology helps store excess renewable energy when demand is low and supply it back to the grid when demand exceeds generation. Another driver is the increasing focus on decarbonization of energy and transportation sectors. Production of renewable gas through power-to-gas and its use in power plants as well as in transportation fuel helps reduce dependence on natural gas and cut carbon emissions significantly.
Segment Analysis
The global power-to-gas market is dominated by the electrolysis segment. Electrolysis is the process of using electricity to split water into hydrogen and oxygen. It accounts for over 60% of the total power-to-gas market share as it is the only commercially available technology for large-scale hydrogen production from renewable power. The methanation segment is expected to witness the highest growth during the forecast period. Methanation is the process of transforming hydrogen and carbon dioxide into methane using catalysts. It allows for easier transportation and storage of renewable energy in existing natural gas infrastructure.
PEST Analysis
Political: Governments across regions are supporting the development of power-to-gas technologies through initiatives and subsidies. This is driven by the need to reduce dependence on fossil fuels and meet environmental targets.
Economic: The declining costs of renewable energy and electrolysers is making power-to-gas economically viable. However, high capital investments remain a challenge for large-scale projects.
Social: Growing environmental consciousness is driving the adoption of green technologies. Power-to-gas can facilitate a transition to cleaner energy sources by integrating renewable power into existing gas infrastructure.
Technological: Significant improvements have been made in electrolysis and methanation technologies. Advancements in catalyst materials and processes are further reducing costs and efficiencies.
Key Takeaways
The global Power-to-Gas Market Size is expected to witness high growth, exhibiting CAGR of 12% over the forecast period, due to increasing deployment of renewable energy sources. The amount of renewable energy curtailed is projected to rise sharply which power-to-gas can utilize effectively by converting excess renewable electricity into hydrogen or methane.
Regionally, Europe dominates the global power-to-gas market and is expected to continue its leadership during the forecast period. Countries like Germany have developed supportive policies and are running large-scale demonstration projects to integrate renewable power using power-to-gas technologies.
Key players operating in the power-to-gas market are Aquahydrex, Inc., MAN Energy Solutions, Electrochaea GmbH, ITM Power PLC, EXYTRON GmbH, Hydrogenics Corporation, and Hitachi Zosen Corporation. Electrochaea and Hydrogenics specialize in electrolysis technologies whereas MAN Energy Solutions and Hitachi Zosen focus on methanation equipment. ITM Power and Hydrogenics are also engaged in building hydrogen refueling stations.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
