The Transportation Segment is Expected to Accelerate Power-to-Gas Demand
Power-to-gas business models are reaching an inflection point, thanks to improving electrolyzer technology and falling capital costs among renewables
A new report from Navigant Research analyzes the global market for power-to-gas (P2G) technologies in the transportation, industrial, electric power, and heating segments, providing forecasts for annual installed capacity and cumulative hydrogen production, through 2026.
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 as electrolyzer technologies improve and decline in price, P2G business models are taking shape. Click to tweet: According to a new report from @NavigantRSRCH, the transportation segment, where hydrogen is most valued, is expected to jump-start P2G demand and further drive down electrolyzer and other infrastructure costs.
“P2G business models are reaching an inflection point, thanks to improving electrolyzer technology and falling capital costs among renewables like PV and wind,” says Adam Forni, senior research analyst with Navigant Research. “With hydrogen demand from the transportation sector as a catalyst, P2G is forecast to take off since it can both provide high-value clean fuels and support the electric grid with flexible operation—on timescales from seconds to months.”
As costs fall, growth is expected in the non-transport segments, creating opportunities for a variety of market players. According to the report, electrolyzer vendors scaling up operations should seek partnerships—from renewable energy developers to software storage companies. Renewables developers should consider P2G on any project of sufficient scale, and gas utilities should consider what it means that hydrogen could be the fuel of the low carbon future. Meanwhile, electric utilities and grid operators should recognize the value electrolyzers can provide to the grid.
The report, Power-to-Gas for Renewables Integration, 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. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Power-to-Gas for Renewables Integration, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.