Europe Power to Gas Market

Europe Power to Gas Market Analysis

The Europe Power to Gas Market is expected to register a CAGR of greater than 6% during the forecast period.

• Power-to-Hydrogen is the most popular method to convert electricity to gas and hydrogen is a clean fuel which is preferred over methane.
• The promotion of hydrogen based energy in emerging markets to create oppurtunities as it is a clean energy sources which would aid the market.
• Germany is one of the major countries in European power to gas market as hydrogen consumption by various sector such as fertilizers and chemical industries.

Europe Power to Gas Market Trends

Germany is going to dominate the market

• Germany is one of the major countries in the European power to gas Market. As of 2020, Germany is home to around 40 small power-to-gas pilot projects that harness surplus green power, mainly wind and solar projects, to carry out electrolysis, splitting water into oxygen and hydrogen to produce zero-carbon fuel.
• Furthermore, according to Deutscher Verein des Gas- und Wasserfaches (DVGW), Germany is planning to build a power-to-gas capacity of 5 GW by 2023 and 40 GW by 2050. It seeks to develop zero-carbon fuels for homes, factories and vehicles. Thus, such government targets are likely to increase the power of the gas market in the region during the forecast period.
• Similarly, in June 2020, the government in Germany rolled out a national hydrogen strategy that aims for a 200-fold increase in electrolyzer capacity of up to 5 GW by 2030. Such an increase is likely to increase the production of green hydrogen to 14 TWh. Thus, increasing the power to the gas market during the forecast period.
• Overall, the government support and development of hydrogen power to gas projects would aid the market.

Power to hydrogen to dominate the market

• The technology has advantages such as higher power storage capacity and longer discharge times than current energy storage technologies. Hydrogen can also be injected directly into natural gas grids. However, hydrogen injection is subject to regulations due to safety and technical concerns and varies country-wise. For instance, the limit of hydrogen in natural gas grids in the United Kingdom is 0.1%, while it is 12% in the Netherlands.
• Due to the falling costs of renewable energy technologies such as solar and wind, energy storage technologies such as Power-To-Gas (PtG) technology are becoming increasingly attractive, and the installed capacity of commercial electrolyzer systems has been growing steadily over the past few years. There are only a few commercially viable water electrolysis technologies, and the two most widely used technologies are alkaline water electrolysis (AWE) and proton exchange membrane (PEM) electrolysis.
• PEM electrolyzers utilize platinum group metal (PGM) catalysts synthesized in ultra-thin layers to a polymer membrane to achieve the critical reactions producing high-purity hydrogen. They have a relatively smaller footprint than alternatives and are flexible in operation; Hence, they can effectively harness the intermittency of renewable energy.
• Additionally, the rising usage of green hydrogen for industrial applications such as steel manufacture is another significant driver for the growth of the segment. In 2021, the world's first pilot project for producing carbon-free steel using low-carbon hydrogen began operation in Sweden.

Europe Power to Gas Industry Overview

The Europe power-to-gas market is moderately consolidated. The key shareholders in the market include ENTSOG AISBL (European Network of Transmission System Operators for Gas), Sempra Energy, GRT Gaz SA, MAN Energy Solutions, and Sunfire GmbH.

Europe Power to Gas Market Leaders

Europe Power to Gas Market News

• In March 2022. Environmental Resources Management's (ERM) ERM Dolphyn and Source Energie have entered into a partnership to develop a 200 floating wind to hydrogen project in the United Kingdom. The project is expected to be commissioned by 2027 and is likely to produce green hydrogen.
• In March 2022, Sunfire has won the contract to supply electrolysis equipment for Finland's first industrial-scale green hydrogen plant constructed by P2X Solutions. The Construction of the plant in Harjavalta, southwest Finland is expected to being by mid-2022 and the company has invested EUR 70 million in the facility, a 20 megawatt hydrogen and synthetic methane production plant