Alpiq Buys Power-to-Gas Contractor

Swiss utility Alpiq said July 3 it will become a 'power-to-gas' (PTG) contractor, after acquiring a Swiss producer of hydrogen production facilities.

It closed the acquisition of Diamond Lite on June 30. Both parties have agreed not to disclose details regarding the purchase price, said Alpiq, noting that it conforms with Alpiq's strategy to expand further its market presence in the energy services sector.

The core of the power-to-gas process is electrolysis, enabling production of energy-rich hydrogen gas using electricity and water. The produced hydrogen can be used directly as an energy source, as a fuel in hydrogen-fuelled buses and cars, or fed into the public gas grid. Alternatively, hydrogen can be synthesised with carbon dioxide (CO₂) to create methane or liquid fuels. Alpiq says the capture of free carbon during the production process enables a climate-neutral combustible and fuel cycle to be created. Potential areas of application for the technology include, in future, aviation.

Many see PTG as a way to use up surplus renewable electricity, which cannot otherwise be stored. Diamond Lite's headquarters are in the Swiss municipality of Herisau where it maintains a long-standing, successful partnership with Proton OnSite, a leader in advanced electrolysis technology.

Germany's Uniper has invested in PTG facilities, including a 2-MW unit at Falkenhagen using technology provided by Canada's Hydrogenics. Swiss utility Swissgas was a 20% partner, alongside Uniper, at Falkenhagen.

Dutch firm Gasunie said last week it will build a 1-MW unit in the north of the Netherlands.

Mark Smedley