Power-To-X: Bridging the Gap
for a Sustainable Energy Future

In the quest for a more sustainable energy landscape, Power-to-X (P2X) technology is emerging as a game-changing solution. P2X refers to a range of processes that convert renewable electricity into various forms of energy carriers or chemical products, effectively bridging the gap between renewable energy production and consumption.

Contents

• The Role of Power-to-X In Sustainable Energy
• Impact of Power-to-X Across Sectors
• Power-to-X Market Growth and Potential
• Power-to-X in Southeast Asia
• Conclusion

The Role of Power-to-X in Sustainable Energy

Impact of Power-to-X Across Sectors

Power-to-X Market Growth and Potential

The Power-to-X (P2X) market is experiencing rapid growth, driven by the urgent need to mitigate climate change and reduce greenhouse gas emissions. Recent market analyses provide insights into the current and projected growth of this sector:

Current Market Size

As of 2024, the global P2X market was valued at USD 346.9 million (Grand View Research, 2024). This figure represents a significant increase from previous years, indicating growing adoption of P2X technologies across various industries.

The market is expected to expand substantially over the next decade. By 2030, the market size is projected to reach USD 645.3 million, growing at a Compound Annual Growth Rate (CAGR) of 11.2% from 2025 to 2030 (Grand View Research, 2024).

Fig. 1. Power-to-X Market Size by Technology
(Source: Grand View Research, 2024)

Looking further ahead, estimates suggest the market could reach USD 1072.23 million by 2034 (Precedence Research, 2024).

Regional Market Dynamics

Europe currently dominates the P2X market, accounting for a 41.0% share in 2024 (Grand View Research, 2024; Precedence Research, 2024). The region's focus on transitioning to a carbon-neutral economy and replacing conventional fuels with cleaner alternatives is driving this leadership position. European countries are actively pursuing P2X technologies to achieve up to 90% reduction in lifecycle emissions compared to conventional fuels (Grand View Research, 2024).

Fig. 2. Power-to-X Market Trends by Region
(Source: Grand View Research, 2024)

Sector-Specific Growth

The transportation segment currently dominates the P2X market, highlighting the technology's potential in decarbonising this hard-to-abate sector (Grand View Research, 2024). P2X solutions, particularly in the form of synthetic fuels and green hydrogen, are seen as crucial for reducing emissions in aviation, shipping, and heavy-duty road transport.

Fig. 3. Power-to-X Market Share by End-use
(Source: Grand View Research, 2024)

Factors Driving Growth

Several key factors are contributing to the rapid expansion of the P2X market:

1. Declining costs of renewable energy, making P2X processes more economically viable.
   

   
   Fig. 4. Cost of renewable energy versus fossil fuels worldwide from 2017 to 2023 with a forecast for 2028, by energy type
   (Source: Statista, 2024)

2. Advancements in electrolysis and synthetic fuel production technologies (Schneider, et al., 2024).
3. Increasing government support through policies and incentives for decarbonisation (International Energy Agency, 2024).
4. Growing demand for green hydrogen across various industries, from more than 97 Mt in 2023 to almost 100 Mt in 2024 (International Energy Agency, 2024).
5. The need for long-term energy storage solutions to balance intermittent renewable energy sources (Enasel & Dumitrascu, 2025).

Challenges and Opportunities

While the market outlook is generally positive, challenges such as high implementation costs and limited infrastructure in emerging economies may impact growth rates. However, these challenges also present opportunities for innovation and investment, particularly in regions like Asia-Pacific, the Middle East, and Africa, where large-scale renewable energy projects are being developed (Future Market Insights, 2025).

As the global focus on achieving net-zero emissions intensifies, the P2X market is poised for substantial growth, playing a crucial role in the transition to a more sustainable and decarbonised energy landscape across multiple sectors of the global economy.

Power-to-X in Southeast Asia

Existing Initiatives

Conferences and events are showcasing the region's clean energy potential and opportunities for P2X adoption. The Asia Clean Energy Summit (ACES) 2024, held from October 22-24 at Marina Bay Sands, Singapore, was a key part of Singapore International Energy Week (SIEW) 2024. This summit brought together regional and global leaders to discuss innovative technologies, critical partnerships, and collaborative efforts required to create a just energy transition for Southeast Asia (Singapore International Energy Week, 2024).

Regional Potential

• The ASEAN Power Grid (APG) initiative is creating interconnectivity crucial for P2X development. The APG aims to construct a regional power interconnection, first on cross-border bilateral terms, then gradually expanding to a sub-regional basis, and eventually leading to a fully integrated Southeast Asian power grid system (HAPUA, 2024).


• Cross-border projects are demonstrating the feasibility of multilateral power trade in Southeast Asia. For instance, Singapore, Cambodia, and Lao PDR have established a working group to facilitate cross-border electricity trade and advance the APG vision (Ministry of Trade and Industry, 2024).


• In June 2024, Mitsubishi Power signed a Memorandum of Understanding (MoU) to research the development of hydrogen co-firing technologies for Thailand's gas turbine power generation facilities. The study focuses on finding ways of easing the adoption of clean fuels in thermal power plants, assisting Thailand in its objective to reach carbon neutrality by 2050 and net-zero emissions by 2065 (Mitsubishi Heavy Industries, 2024).


• MAN Energy Solutions and Wasco are collaborating to promote P2X projects in the region (MAN Energy Solutions, 2020). MAN Energy Solutions opened its largest service hub outside of Europe in Singapore, which will play a crucial role in supporting the development of P2X technologies in Southeast Asia (Maritime and Port Authority of Singapore, 2024).

Emerging Opportunities

• Platforms like Sustainable Asia Renewable Assets (SARA) are developing clean energy projects across the region. SARA aims to build a 500 MW portfolio of greenfield renewable energy projects across selected Southeast Asian markets, including Vietnam, by the end of the SUSI Asia Energy Transition Fund's life (King, 2025).

 
• Singapore's green energy import initiatives could pave the way for P2X projects. The country has set an ambitious target to import 5.6GW of low-carbon electricity by 2035, accounting for 30% of Singapore's energy needs. This initiative involves importing electricity from various countries including Indonesia, Cambodia, Vietnam, and Australia, facilitated by subsea transmission cables (Energy Market Authority, 2024; Singapore Economic Development Board, 2024).

Conclusion

As we look towards 2030 and beyond, Power-to-X technologies are poised to play a pivotal role in the global transition to a sustainable energy future. With rapid market growth projected, increasing investments in renewable energy infrastructure, and ongoing technological advancements, P2X is set to bridge the gap between renewable energy production and consumption across various sectors. From transportation and industry to agriculture and heating, these innovative processes offer versatile solutions for reducing carbon emissions and enhancing energy efficiency.

As Southeast Asian countries, including Singapore, continue to embrace and develop P2X initiatives, the region is emerging as a key player in this transformative field. By enabling the storage and conversion of renewable energy into various useful forms, P2X technologies are not just creating a more flexible and resilient energy system, but are also paving the way for a cleaner, more sustainable world for generations to come.

Stay Informed

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References

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• energy transition
• sustainable power
• innovative energy
• green technology
• carbon neutral
• climate action
• sustainable solutions
• synthetic fuels
• hydrogen energy
• decarbonisation
• net zero
• GREEN ENERGY
• sustainable energy
• p2x
• power to x
• Future of Energy
• Energy Efficiency
• PPG
• clean energy
• renewable energy
• energy storage