Key markets for the power-to-gas (P2G) technology are countries or regions with a high share of wind and solar energy. The transportation sector is likely to be among the first adopters and use the renewable gas from P2G as a sustainable fuel.
The intermittent nature of wind and solar will lead to more frequent and prolonged periods of excess electricity supply, creating the need for energy storage. As Europe and other developed countries are shifting toward a renewable energy system, there are many markets that will benefit from power-to-gas energy storage, including Denmark, Germany, France, the Netherlands, the UK, the United States, and China. P2G’s technical features make it particularly suitable for storing large amounts of wind and solar energy produced during periods of low demand, such as on a sunny summer weekend or during a windy night. Power-to-Gas thereby complements other energy storage technologies focused primarily on short-term storage applications such as peak shaving and voltage control.
While there are many potential uses of the renewable gas injected into the gas grid by a P2G facility, the transportation sector could be among the first adopters. Vehicles fueled by compressed natural gas (CNG) are technologically mature and available in many advanced vehicle markets at a cost competitive with gasoline and diesel cars. Due to the chemical identity of fossil natural gas and renewable gas from P2G, the latter can use the delivery, fueling, and vehicle infrastructure that is already in place. Renewable gas is also suitable for long-range vehicles which cannot be electrified, representing one of the few options for trucks and marine vessels to switch to a sustainable fuel.