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The steep reduction in costs of electrolysis and methanation has made renewable power-to-gas much more affordable. Reeling from an energy crisis, Europe could use this technology for near-shoring production of clean and reliable synthetic natural gas (SNG) and end dependence on Russian gas. This article investigates the economic feasibility of producing SNG in Norway, which has amongst the cleanest and cheapest electricity production in Europe. It is found that SNG can be produced for 141 €/MWh at a 10 MW electrolyzer facility in 2023; and for 108 €/MWh at a larger 100 MW electrolyzer facility in 2030. The relevance of these prices is discussed in the context of the current and future European gas markets, and recommendations are made to reduce the production costs even further.

Across the globe, energy production and usage cause the greatest greenhouse gas (GHG) emissions, which are the key driver of climate change. Therefore, countries around the world are aggressively striving to convert to a clean energy regime by altering the ways and means of energy production. Hydrogen is a frontrunner in the race to net-zero carbon because it can be produced using a diversity of feedstocks, has versatile use cases, and can help ensure energy security. While most current hydrogen production is highly carbon-intensive, advances in carbon capture, renewable energy generation, and electrolysis technologies could help drive the production of low-carbon hydrogen. However, significant challenges such as the high cost of production, a relatively small market size, and inadequate infrastructure need to be addressed before the transition to a hydrogen-based economy can be made. This review presents the state of hydrogen demand, challenges in scaling up low-carbon hydrogen, possible solutions for a speedy transition, and a potential course of action for nations.