Five Strategies for Optimizing Power-to-X Projects

The green transformation of the energy sector is catalyzing the creation of a multitrillion-dollar investment pool. Investors are targeting the development of major capital projects, particularly in renewables and associated technologies. A standout among the technologies is power-to-X (PtX), which converts renewable electricity into hydrogen, ammonia, or other molecules as well as sustainable aviation fuel. Integrated PtX solutions could replace many of the carbon-intensive chemicals and liquid fuels used today.

To capture the emerging PtX opportunities, developers will need to overcome challenges posed by complex interdependencies, nascent technologies, new regulations, and uncertain market conditions. The challenges are evident in the schedule estimates for PtX projects, which range from seven to nine years from initial feasibility studies to beneficial operations. These protracted timelines increase the financial and scheduling risks, creating greater uncertainty in the market.

Boston Consulting Group and Oxford Global Projects have developed a new approach for these large capital projects. Encompassing five strategies, the approach will help accelerate completion time for Power-to-X projects while increasing their value. Mastering this innovative approach requires radical changes in project capabilities and governance — but companies that succeed will gain a significant competitive edge, potentially becoming major players in this emerging sector.