July 19, 2024

Global Power-To-Gas Market Is Estimated To Witness High Growth Owing To Increasing

Power-to-Gas converts renewable electricity into gaseous fuel that can be stored in the existing natural gas infrastructure. This allows the energy to be used when it is most needed. It also enables the industrial sector to switch from combustion processes to electricity-based ones. It is possible to achieve a much higher level of decarbonization by using power-to-gas than by investing in expensive transmission lines or battery storage. The Power-to-Gas concept uses electric power to drive two core processes: water electrolysis and carbon dioxide methanation. The resulting “renewable natural gas” is injected into the gas grid. This energy can be used for example, to produce the high temperatures required for industry processes like steel production without a large investment in new technology.

Market Dynamics:

Rising investments are estimated to augment the growth of the global Power-To-Gas Market during the forecast period. For instance, a USD 504.4 million investment was made by the United States Department of Energy to finance Advanced Clean Energy Storage, in June 2022. This clean hydrogen and energy storage facility is located in Delta, Utah. Moreover, price fluctuations for natural gas are anticipated to restrain growth of the global power-to-gas market during the forecast period.

Impact of COVID-19:

The pandemic was first reported in 2019 in China. It led to hampering the growth of several sectors. During the pandemic strict regulations were imposed in many regions. These restrictions had a severe impact on the growth of many industries. The pandemic also led to the shutting down of many manufacturing units across the world. There was a shortage of raw materials in many regions and a lack of manpower. Thus, the demand for power-to-gas decreased during the pandemic. Thus, the growth of the global power-to-gas market was restrained during the pandemic.

Key Takeaways:

The global Power-To-Gas Market is expected to witness high growth, exhibiting a CAGR of 12.2 % over the forecast period, due to increasing agreements among key players. For instance, HydrogenPro and Mitsubishi Power signed an agreement in February 2022. The HydrogenPro electrolyzer system will create oxygen and green energy using solar and wind energy.

Asia Pacific is anticipated to witness significant growth in the global power-to-gas market during the forecast period, due to growing government policies and rising growth of the power-to-gas market in the region.

Key players operating in the global power-to-gas market are Socalgas, Hydrogenics, Micropyros, Nel ASA, Sunfire GmbH, Sempra Energy, MAN Energy Solutions, Thyssenkrupp AG, Sunfire GmbH., Nel Hydrogen, McPhy Energy, Carbotech, Fuelcell Energy, Electrochaea, and Fuelcell Energy.