White Paper on power-to-gas published by European Power to Gas Platform
19 september 2017
The White Paper concludes that from a today’s perspective in a purely renewables based European energy supply there is no way around power-to-gas. Its deployment optimizes grid infrastructure investments and as a large-scale energy storage means, there is currently no competitor for power-to-gas in combination with underground storages (UGS) in terms of capacity and economics. Moreover, the decarbonization of the chemical industry and transport sector will be difficult to realize without power-to-gas as provider of sustainable fuel and feedstock.
The White Paper states that from a technological perspective, power-to-gas is ready for commercial exploitation. However, the challenge is to quickly reach an industrial scale that is economically exploitable. The transport sector will play a key role in the commercialization of the concept as business cases are (near to) positive already. Conservative estimates show that if the national targets for hydrogen mobility in the EU member states for 2030 would be entirely achieved with hydrogen production via power-to-gas, the capex costs for electrolyzers could be cut down by two thirds. This would also benefit the business cases for the other power-to-gas services which are expected to take up between 2030 and 2040.
The White Paper stretches that for a successful commercial deployment of power-to-gas, close cooperation between all stakeholders will be essential. Governments and regulators play an important role in creating a level-playing-field for power-to-gas; among other things, this includes acknowledging (green) hydrogen as a biofuel, a comparable stimulation of hydrogen mobility to electromobility, and eliminating all end user charges for the converted electricity. The gas and electricity sectors need to coordinate their network development plans with each other and end users need to adapt to the new fuel (blends).
The European Power to Gas Platform facilitates the dialogue between all these stakeholders. It provides them with a forum to gain and exchange knowledge and to explore the conditions under which power-to-gas can be successful. The common goal is to realize the energy transition as cost-effectively as possible.
The White Paper can be downloaded here.