Power-to-X uses electricity to produce hydrogen, synthetic methane, or liquid fuels. It is not new, but its potential to expand the applications for renewables is drawing interest. A deeper exploration of power-to-X is useful as societies endeavor for environmental and economic sustainability.
© 2018 Bloomberg Finance LPWinds of change continue to blow across the global energy landscape as firms, the general public, and policymakers shift strategic directions to address goals of environmental sustainability that also recognize economic priorities. In Germany, winters are often wet and windy when the Westerlies blow. That’s good for renewables. Germany just had a full week of 65% renewable power, following another record year of 40% renewable power in 2018.
Power-to-X uses electricity to produce hydrogen, synthetic methane, or liquid fuels such as ammonia or methanol. Althoughpower-to-X is not new, its stature has grown in recent years, and it presents distinct possibilities to store excess renewable power generated in times of relatively low demand which can improve the economic value of renewable generation by facilitating a classic storage arbitrage.
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