Power-to-gas (P2G)—the conversion of electrical power into gaseous energy carriers—has been held back from mass adoption by high costs, regulatory hurdles, and difficulties with infrastructure. Yet, as the levelized cost of renewable energy falls and electrolyzer technologies improve and decline in price, P2G business models are taking shape. Regulatory changes that allow cheap renewables to be more readily converted to gas are key to this transition and are gradually improving as part of the larger market transformations affecting the energy industry.
P2G offers many of the same renewables integration services as other energy storage technologies. It also offers the ability to store energy seasonally and the flexibility of commodity fuels, including hydrogen and synthetic natural gas. Successful business models will fully monetize the value to the grid of both P2G’s flexibility and gas fuel outputs. Growing demand from the transportation segment, which values hydrogen most highly, is viewed as a springboard that will encourage adoption, improve economies of scale, and drive further growth in other segments.
This Guidehouse Insights report analyzes the global market for P2G technologies in the transportation, industrial, electric power, and heating segments. The study provides an analysis of significant market and technology developments and profiles key market players in electrolyzer technologies. A global market forecast for annual installed P2G capacity and cumulative hydrogen production extends through 2026. The report also examines diverse hydrogen use cases, as well as regional trends and policies related to P2G.