Economic Analysis of Synthetic Natural Gas Production in Germany Considering Different Power-to-Methane Plants

Abstract

Power-to-Gas technology can play a crucial role in Germany’s energy transition, as it can help decarbonize various sectors. Therefore, this study analyzes the levelized cost of synthetic natural gas production in Germany. For this, different electrolysis technologies, CO2 sources, and scenarios are considered. This study’s objectives are to find out which Power-to-Methane technology causes the lowest levelized cost, how the tremendous change of wholesale electricity prices in 2022 impacted it, and how it changes if an electricity price of 0 €/MW h is assumed. Furthermore, the results are compared with natural gas and biogas prices. Solid oxide electrolyzer cell and biomass as the CO2 source causes the lowest levelized cost. Compared to 2021, the levelized costs have changed significantly in 2022. For example, the values increased by about 54–78% (10 MW) and 65–87% (100 MW). Provided that an electricity price of 0 €/MW h is assumed, the levelized costs decrease by 20–92% (10 MW) and 25–95% (100 MW). Compared to natural gas and biogas prices, only the scenarios with biomass as the CO2 source for 2030 and 2050 are in the range of these values if electricity prices are fully considered. If an electricity price of 0 €/MW h is assumed, all values, apart from a few exceptions, are in the range of the comparative values or below.