Power-to-X (also known as PtX or P2X) is a collective term for energy conversion technologies that turn electricity from wind, water, or solar into an energy carrier (“X”). It is an umbrella term for different ways of generating energy, including Power-to-Gas, Power-to-Liquid, Power-to-Fuel, Power-to-Chemicals, and Power-to-Mobility. Power-to-X schemes are particularly useful in energy systems with high shares of renewable generation and/or fluctuating renewable sources.

Power-to-X technologies can be used to reduce greenhouse gas emissions in heavy transportation vehicles, ships, and air traffic by producing synthetic kerosene from electricity. The most promising concept is Power-to-Gas which can provide significant amounts of hydrogen or synthetic methane utilizing excess electrical power from renewables to produce a gas fuel. Other Power-to-X concepts include Power-to Heat which works either by resistance heating or via a heat pump and Power-to-Liquids which adds carbon dioxide to hydrogen to produce ammonia, methanol, or kerosene.

Power-to-X technologies are essential in achieving a carbon-neutral society and they are one of the most effective ways of storing energy from fluctuating renewable sources. Power-to-X solutions can be divided into two categories: Those that use electricity as a direct power source (e.g., Power-to-Heat and Power-to-Mobility) and those that produce synthetic fuels (e.g., Power-to-Gas, Power-to-Liquid, Power-to-Fuel, and Power-to-Chemicals). The relatively low efficiency of the latter limits their employment to areas in which the direct use of renewable sources of energy is either barely possible or not feasible.

One of the core technologies behind Power-to-X is electrolysis where water is split into hydrogen (H2) and oxygen (O2). Then, Hydrogen can be used directly as a final energy carrier or it can be converted into, for example, methane, synthesis gas, liquid fuels, electricity, or chemicals.

Power-to-X technologies are many electricity conversions, energy storage, and reconversion pathways that use surplus electric power, typically during periods where fluctuating renewable energy sources are available. These technologies allow for the decoupling of power from the electricity grid for use in other sectors such as transport or chemicals.

The benefits of Power-to-X solutions include balancing the gap between variable renewable energy generation and load, improving the feasibility of renewable power projects by maximizing energy utilization, and facilitating the replacement of fossil fuels with carbon-neutral alternatives. Power-to-X technologies help extend the use of energy coming from renewable sources to sectors that are not directly connected to the electricity grid such as transportation, heating, and cooling. Additionally, Power-to-Heat involves contributing to the heat sector either by resistance heating or via a heat pump which can increase efficiency.

Numerous Power-to-X projects have already been put into service around the globe. Energy sources have a major impact on Power-to-X and almost half of the projects consider a supply by direct renewable energy technologies such as wind, water, or solar demonstrating their potential for helping to transition away from fossil fuels.

The economics of Power-to-X technologies depend on factors such as continuous price decline of electricity from renewable sources and capital costs. Energy producers, utility companies, logistical solution providers, and large industrial consumers of energy are potential beneficiaries of these technologies. The potential market for Power-to-X solutions is expected to grow due to increasing demand for carbon-neutral solutions.

The potential market for Power-to-X technologies is estimated to reach 601-2,319 billion EUR by 2035. The global Power-to-X market is expected to grow at a compound annual growth rate (CAGR) of 9.8% between 2023 and 2033. In 2021, Europe held the largest market share in terms of revenue, while the Asia-Pacific region is expected to register the fastest growth in CAGR over the forecast period due to soaring power demand caused by rapid urbanization and industrialization. The transportation segment is anticipated to dominate the market in terms of end-use, driven by increasing demand for eco-friendly automobiles with reduced environmental carbon emissions.

Power-to-X technologies provide the potential to reduce initial investment and increase process efficiencies, particularly in electrolysis.

The power and energy industry has significantly grown over the recent years and is expected to rapidly expand in terms of revenue share over the forecast period. Major players are focused on adopting various strategies such as mergers and acquisitions, product launches, collaborations, etc. to gain a competitive advantage in the market.

In Europe, industrial-based Power-to-X projects are of higher interest compared to other countries, with almost half (105) of all projects considering a supply by direct renewable energy technologies such as solar or wind energy sources. In terms of fuel production, Power-to-X is the most common field of application in Europe with a 37% share of all projects, indicating that the development of Power-to-X technologies is progressing quickly and will continue to do so in the near future.