Power-to-hydrogen and hydrogen-to-X: Which markets? Which economic potential? Answers from the literature

Abstract

With the expansion of renewable energy’s contribution to the energy mix, balancing the electricity grid is becoming increasingly challenging. Alongside other solutions, Power-to-Hydrogen concepts are gaining significant interest. In this paper, the “Task 38”, initiated by the Hydrogen Implementing Agreement of the International EnergyAgency, presents the first of a two-step literature review regarding Power-to-Hydrogen and Hydrogen-to-X concepts with a focus on prospective market and economic potential. The study reveals a large scope of literature that shows a considerable variety ofsuggested implementation schemes. The transportation sector is identified as the most promising consumer market. Hydrogen-to-Gas pathways will require subsidies in order to be profitable. Hydrogen-to-Power becomes an economically promising option in the context of systems with high shares of renewables and a need for longer-term storages. Additionally, key enablers for Power-to-Hydrogen concepts are identified; namely support policies, concurrently with ongoing progress on the development and implementation of industry standard.