Renewable Energy Storage Solutions to Openup The New Avanue For Power-To-Gas Market

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 converts electricity from renewable sources such as solar and wind into hydrogen or methane gas by electrolysis or methanation. This allows the excess and intermittent renewable electricity to be stored for later use. Power-to-gas helps balance energy supply and demand by storing surplus renewable energy that can later be used as fuel.

Market key trends:

Large-scale energy storage is becoming increasingly crucial with the growing use of renewable but intermittent energy sources like solar and wind. Power-to-gas provides a means of long-term, large-scale energy storage by converting surplus renewable energy into hydrogen or methane gas. Its ability to store excess renewable energy production on a large scale is driving more research and projects around power-to-gas technologies. Countries around the world are demonstrating and piloting power-to-gas solutions to test the viability of using renewable gases within the existing natural gas infrastructure and to utilize excess renewable electricity.

Porter’s Analysis

Threat of new entrants: Low capital requirements and existing infrastructure pose low threat for new companies to enter the market. However, established presence of key players makes entry difficult.

Bargaining power of buyers: Large industrial buyers have significant bargaining power due to bulk purchase volumes. Nonetheless, specialized technological expertise required limits switching between vendors.

Bargaining power of suppliers: Suppliers of critical components like electrolyzers and fuel cells have some control over prices. However, availability of substitutes maintains a balance in bargaining power.

Threat of new substitutes: Conversion and storage technologies like batteries pose competition, while renewable gases provide alternatives. However, power-to-gas capabilities for seasonal storage give it an edge over substitutes.

Competitive rivalry: Intense competition exists among technology majors to gain leading market share through capacity expansions, innovations and strategic collaborations.

SWOT Analysis

Strengths: Ability to store excess renewable energy; aids energy transition to renewable fuels and decarbonization.

Weaknesses: High capital costs; commercialization challenges till economies of scale are achieved.

Opportunities: Growing investment in green hydrogen; supportive government policies and incentive schemes.

Threats: Uncertainty over long-term feasibility; competition from alternate storage technologies.

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 investments in renewable energy integration and infrastructure. With excess solar and wind energy generation during certain periods, power-to-gas offers a viable solution for renewable energy storage and conversion. Countries in Europe are leaders in promoting and adoption of power-to-gas due to ambitious decarbonization targets and hydrogen economy roadmaps. Germany dominates with most projects underway due to favorable regulations around renewable energy usage and grid stability.

Regionally, Europe dominates currently, accounting for over 80% of global capacity owing to supportive policy frameworks. Countries like Germany, France, Netherlands and Italy are pioneer markets. However, with Asia expected to lead investments in renewable energy installations, regions like China and Japan are projected to offer significant growth opportunities during the forecast period.

Key players operating in the power-to-gas market include Aquahydrex, Inc., MAN Energy Solutions, Electrochaea GmbH, ITM Power PLC, EXYTRON GmbH, Hydrogenics Corporation, Hitachi Zosen Corporation. Major players are focusing on strategic partnerships and capacity expansions to gain leadership in technology and solutions for large-scale projects. Focus is also on integrating end-to-end solutions and providing services for renewable generation plants.

Read More: https://www.rapidwebwire.com/power-to-gas-market-demand-growth-drivers-and-outlook/