Power-to-Gas Business Cases: Revenue Streams, Economic and Regulatory Barriers, Business Opportunities

The European Commission (EC) has set out a European Green Deal that aims to tackle climate and environmental challenges, among others the energy transition. A key aspect of this Green Deal is the decarbonisation of the Gas sector and market. To achieve this decarbonisation, the EC has launched different studies identifying and assessing the regulatory barriers that could potentially limit sector coupling and deployment of renewable and low-carbon gases.

In response to the EC initiative, EASE has decided to develop a paper outlining the main business opportunities for Power-to-Gas, as well as the barriers that could obstruct the wider deployment of Power-to-Gas in the EU. EASE also provides a set of recommendations for policymakers to support the Power-to-Gas business case.

Hydrogen and Power-to-Gas (PtG) are chemical energy storage technologies, one of five energy storage technology ‘families’ identified by EASE. Electricity-produced hydrogen can be used for transport (fuel), for heating (fuel), as a raw material (chemical feedstock); to balance electricity demand & supply and to support the management of the electricity grid (through storage).

EU policymakers have recognised the promising role that hydrogen can play to decarbonise high-value end- uses, such as part of the industrial applications and very heavy-duty transport. Seasonal storage could be another key driver.