In this project, OWS assessed the feasibility of power-to-gas with the biological methanation technology developed by OWS.
From a technical point of view, there are no impediments for the full-scale implementation of a power-to-gas plant using the biological methanation technology developed by OWS.
A preliminary risk assessment did not come up with any risks that would form a barrier for the implementation of power-to-gas with biological methanation.
OWS’s technology is sufficiently innovative to avoid any patent infringements.
At is unclear to what extent synthetic methane produced in a power-to-gas plant with methanation meets the EU criteria for sustainable biofuels. In our view, synthetic methane is sustainable, regardless of the origin of the carbon dioxide used in the process (fossil or biogenic), as long as the electricity used for the electrolysis process is excess renewable electricity that cannot be stored and returned to the power grid at a sufficiently high efficiency. Once the synthetic methane from power-to-gas meets the EU’s sustainability criteria, it has de facto the same status as biomethane. Concerted efforts with the biomethane sector could help facilitate the use and the trade of synthetic methane.
For the time being, there is no market demand for power-to-gas with biological methanation. This may change in the future, when the share of RES in the EU’s electricity consumption exceeds 80 %, but this is likely a matter of decades and there are several other technologies available that may prove more efficient and less expensive than power-to-gas with biological methanation.
The economic viability of power-to-gas depends a lot on the annual hours that storage of renewable energy in the form of methane will be required. It is estimated that power-to-gas with biological methanation needs to run for at least 4000 hours a year to achieve the optimal levelized cost of energy. Even then, additional revenues would be required to make the process profitable. The most important revenue besides synthetic methane sales would be the price that power grid operators are willing to pay for ancillary services required to maintain the grid balance. Yet, at current imbalance tariffs, it is unlikely that this will be sufficient and power-to-gas with biological methanation may not even be the best option to fulfill this role.
