Economic perspectives of Power-to-Gas technologies in bio-methane production

Abstract

A study on integration of Power-to-Gas technology with bio-methane production from bio-syngas produced by biomass gasification shows that a significant amount of excess electricity can be accommodated in bio-SNG production. By adding hydrogen produced from intermittent renewable sources to a CO₂ methanation section, production capacity of methane can be doubled. The business case for Power-to-Gas for bio-methane has been evaluated using three future cumulative electricity prices curves. Results show that a positive business case exists only for price curves based on large amounts of intermittent electricity installed. The room for investment for the electrolyser will mainly and highly depend on future commodity prices and price curves, and will benefit significantly from a decrease in the cost price of the electrolyser. The projected room for investment available for a PEM electrolyser is lower than for a Solid Oxide Electrolyzer (SOE), because of its lower efficiency and resulting higher operating costs. In the case of large capacity of intermittent electricity, the projected room for investment of an SOE electrolyser is 650 €/kW and for a PEM electrolyser 350 €/kW, which corresponds to the projections of future electrolyser costs.