The global Power to Gas Market size is expected to record a CAGR of 12.5% from 2023 to 2032. In 2023, the market size is projected to reach a valuation of USD 65.4 Million. By 2032, the valuation is anticipated to reach USD 188.7 Million.
Power to Gas Market: Growth Factors and Dynamics
- Renewable Energy Integration: Power to Gas (P2G) facilitates the integration of renewable energy sources by converting excess electricity, especially from intermittent sources like wind and solar, into storable gases like hydrogen or methane. The need for efficient energy storage solutions to manage the variability of renewable energy contributes to the growth of the P2G market.
- Hydrogen Economy Development: The increasing focus on developing a hydrogen economy, where hydrogen serves as a clean energy carrier, propels the demand for P2G technologies. P2G plays a pivotal role in producing green hydrogen, contributing to decarbonization efforts in sectors like transportation and industry.
- Grid Balancing and Stability: P2G systems offer grid balancing and stabilization capabilities by storing excess electricity during periods of low demand and injecting it back into the grid during peak times. The need for grid flexibility and stability drives the adoption of P2G solutions in energy systems.
- Sector Coupling: P2G facilitates sector coupling by enabling the use of renewable gases in sectors beyond electricity generation, such as heating, transportation, and industrial processes. The versatility of P2G applications across multiple sectors enhances its attractiveness as a key component in integrated energy systems.
- Carbon Neutrality Goals: Governments and industries adopting ambitious carbon neutrality goals drive the demand for P2G to store and utilize renewable energy in a way that aligns with decarbonization targets. P2G supports the transition to low-carbon and carbon-neutral energy systems, fostering its growth in the broader energy landscape.
- Innovation and Research Initiatives: Ongoing research and innovation in P2G technologies, including electrolysis and methanation, contribute to cost reductions and efficiency improvements. Advances in P2G technologies make them more economically viable, encouraging widespread adoption and driving market growth in the renewable energy sector.
- Global Energy Transition: The broader global shift towards sustainable and renewable energy sources as part of the energy transition drives the expansion of the Power to Gas market. P2G systems play a crucial role in this transition by offering a flexible and scalable solution for storing and utilizing renewable energy, supporting the overall goals of a cleaner and more sustainable energy landscape.
Power to Gas Market: Partnership and Acquisitions
- In 2022, Mitsubishi Power entered a purchase contract with HydrogenPro for a large-scale electrolyzer system. Utilizing wind and solar energy, the HydrogenPro system will employ electrolysis to produce green hydrogen and oxygen, contributing to sustainable and clean energy solutions.
- In 2019, ITM Power (UK) strategically expanded its clientele through partnerships, exemplified by the collaborative effort with INOVYN, Storengy, Cadent, and Element Energy. Their joint venture, “Project Centurion,” implemented a 100+ MW power-to-gas energy storage project in Runcorn, Cheshire, UK, showcasing a commitment to innovative energy solutions.
List of the prominent players in the Power to Gas Market:
- Siemens AG
- McPhy Energy S.A.
- Electrochaea GmbH
- MAN Energy Solutions SE
- Hydrogenics Corporation
- ON SE
- Nel ASA
- ENGIE S.A.
- Green Hydrogen Systems A/S
- Energypolis SA (Power-to-Gas Italia)
- Thyssenkrupp AG
- ITM Power plc
- Covestro AG
- Uniper SE
- Heliocentris Energy Solutions AG
- Others
The Power to Gas Market is segmented as follows:
- Less than 100 kW
- 100-999 kW
- 1000 kW and Above
- Residential
- Commercial
- Utility
