Methodology for Dimensioning the Socio-Economic Impact of Power-to-Gas Technologies in a Circular Economy Scenario

Abstract

Innovative and sustainable energy technologies are needed in the transition of energy toward a circular economy. Because of the use of renewable energy and carbon utilization, power-to-gas could be a cutting-edge technology that supports the circular model in future sustainable energy markets. However, this technology faces new technical and socio-economic challenges. The use of power-to-gas is limited because of barriers that limit the mobilization of investment capital. In addition, social and economic impacts on the territories in which these facilities are located are under study. In this context, the aims of this paper are: (i) To explore the determinants and barriers for power-to-gas technology to enhance the understanding of investment in innovative energy technologies; and (ii) to support effective policymaking and energy companies’ decision-making processes. This study defines and measures, from a circular economy perspective, the main impacts of the deployment of this technology on a territory in terms of volume of investment, employment generation, and CO2 capture. The study also provides a simplified methodology to contribute to the analysis of the use of power-to-gas. Finally, it improves the knowledge of the socio-economic impact of this cutting-edge technology for the transition of energy to a zero-emission scenario.

Keywords

• power-to-gas
• socio-economic impacts
• circular economy
• energy transition
• sustainability accounting
• investments