Executive Overview: Gas-to-Power Market Dynamics in 2026

US electricity demand is revised upward to strengthen the near-term case for gas-to-power as a dispatchable balancing layer. The total US power consumption is expected to rise from 4.195 trillion kWh in 2025 to 4.268 trillion kWh in 2026 and 4.372 trillion kWh in 2027. Natural gas is expected to hold roughly 40% of generation through 2026.

The global natural gas demand increased by 2.7% in 2024, an incremental 115 bcm. More than three-quarters of demand growth came from emerging markets and developing economies.

Market Structure and Core Segment Dynamics

According to Fortune Business Insights, the global power-to-gas market size is projected to be worth USD 49.07 million in 2026 and reach USD 109.88 million by 2034, exhibiting a CAGR of 10.6% during the forecast period.

 

 

Dispatchable capacity additions are shaped by manufacturing constraints and order-book behavior. GE Vernova reported an order backlog of USD 150 billion (Q4 2025). That is, it booked 59 gas turbine orders in Q4 2025, up from 34 a year earlier. This includes 41 heavy-duty and 18 aeroderivative turbines.

The global gas-fired generation is expected to increase by 1.3% in 2025 and reach a new high, following 1.9% growth in 2024.

Moreover, stranded gas utilization and anti-flaring regulation emerge as direct demand pull for modular gas-to-power, particularly in oil-producing regions and energy-access markets. The global gas flaring reached 151 bcm in 2024. The flares released 389 million tons of CO2-equivalent (MMtCO₂e) emissions in 2024, including 46 MMtCO2e as unburnt methane.

 

 

 

Representative Startups Shaping the Gas-to-Power Ecosystem

Hycosys – Hydrogen Combustion Systems for Backup Power

Hycosys, an Indian startup, creates hydrogen combustion gas turbine systems for gas-to-power applications. Its compact turbines deliver 50-200 kilowatts of electrical output.

The hydrogen combustion turbine technology burns hydrogen fuel in purpose-built systems that convert chemical energy into electricity without carbon emissions.

Each unit prevents more than 150 tons of carbon dioxide emissions per year while maintaining stable power generation performance. It replaces diesel generators by providing reliable electricity backup through gas-based systems. The turbines also support faster return on investment through lower fuel and operating costs.

InoWatti – Flared Gas into Electricity

InoWatti, a Czech Republic-based startup, offers gas-to-power systems that convert flared natural gas into on-site electricity and targets waste gas generated during oil extraction.

The flare gas capture and modular gas generator technology captures flare gas at the source and feeds it into containerized gas-to-power units that generate electricity at remote sites. This electricity provides energy-intensive digital infrastructure and removes the need for gas transport or pipeline construction.

The on-site flare gas power generation technology reduces carbon dioxide equivalent emissions and converts stranded gas into a usable energy resource. Its modular design supports deployment in locations where conventional gas utilization remains uneconomic.

360 Energy – Stranded Gas on-Site Power Monetization

360 Energy, a US-based startup, builds mobile gas-to-power offtake systems that convert stranded natural gas into on-site electricity for industrial energy use.

The Apex Gas Offtake system captures raw field gas at the wellsite and routes it into natural gas generators that produce reliable power at the source. This configuration removes dependence on pipelines and midstream infrastructure while sustaining continuous power generation in remote or capacity-constrained locations.

Moreover, the ruggedized and mobile architecture supports rapid deployment on off-spec gas and aligns with short-term field requirements.

The Apex Gas Offtake system replaces routine flaring with controlled combustion for higher efficiency and reduces methane and carbon dioxide equivalent emissions.

HyAPC – Zero-emissions Gas Turbine Technology

Dutch startup HyAPC provides a gas-to-power turbine technology based on its Hydrogen Argon Power Cycle that generates electricity with zero direct emissions.

The Hydrogen Argon Power Cycle system replaces ambient air with a controlled oxygen-argon mixture supplied by an air separation unit and feeds this mixture into a modified gas turbine combustion process. This argon-based cycle increases thermal efficiency and removes nitrogen from combustion. This prevents nitrogen oxide formation and enables full carbon capture when operating on natural gas.

Moreover, the system supports multi-fuel operation, including natural gas and hydrogen, while delivering stable and dispatchable power across varying load conditions.

Ecofix – Gas-based Electricity Supply and Management

Ecofix, a Belgian startup, delivers a gas-to-power energy management platform that combines retail gas and electricity supply with digital consumption optimization.

The centralized energy management system integrates gas and power tariffs with real-time consumption data through its mobile application. Its proprietary Ecofix Digi system connects smart meters and energy devices to translate gas and electricity usage into coordinated control actions within a single platform.

Moreover, the system extends device-level management to assets such as home batteries, inverters, and charging points to align gas and power consumption with pricing and demand conditions.

Technology Evolution and Emerging Operational Models

In the short term, most demand growth for natural gas is expected to come from the power sector, where combined-cycle gas turbines play a vital role in meeting rising electricity needs. With this, hydrogen blending and combustion redesign are used to protect asset flexibility and extend operating relevance under tightening emissions trajectories.

 

 

Carbon Capture adoption accelerates through gas-to-power infrastructure, as gas-fired power plants generate concentrated, point-source emissions that are suitable for capture systems.

As a result, 4200 companies operate across carbon capture technologies linked to gas-based generation assets. The segment employs 553 900 professionals globally.

An annual growth rate of 5.52% shows that gas-to-power plants support carbon capture, utilization, and storage projects by extending asset lifetimes while meeting tightening emissions standards.

Hydrogen Turbines rely on gas-to-power infrastructure as their technical foundation, since existing gas turbine platforms enable gradual hydrogen blending without requiring full system replacement. This transition pathway supports 46 companies developing hydrogen-compatible turbine technologies and sustains a workforce of 6000 employees.

An annual growth rate of 4.08% reflects rising investment in turbine upgrades, combustion redesign, and materials engineering driven by gas-to-power operators preparing for low-carbon fuel integration.

The Virtual Gas Pipelines segment enables power generation in regions without fixed pipeline infrastructure, including remote, industrial, and fast-deployment sites. The segment includes 55 companies employing 6400 professionals.

With an annual growth rate of 1.54%, virtual gas pipelines support liquefied natural gas (LNG) and compressed gas logistics that allow modular gas-to-power plants to operate independently of traditional transmission networks.

Capital Flows and Infrastructure Financing Trends

Long-cycle gas-to-power build-outs in emerging markets hinge on export credit and sovereign-linked finance.

In March 2025, the Export-Import Bank of the United States (EXIM) approved an amendment enabling a direct loan of up to USD 4.7 billion. It supports US exports of goods and services for the development and construction of an integrated LNG project.

Wood Mackenzie forecasts about 890 GW of new gas-fired capacity additions globally from 2025 to 2040. Also, it highlights challenges for turbine manufacturers in meeting demand over the next 15 years.

Siemens Energy announced it would supply 10 gas turbines to Xcel Energy in October 2025. This supports new build and coal-to-gas replacement projects in the USA.

Maxim Power disclosed a reservation agreement with GE Vernova to hold a manufacturing slot for a 7HA.02 gas turbine and generator package with a target delivery by 2030.

Likewise, the gas-to-power segment attracts major institutional capital, with top investors deploying more than USD 26.5 billion.

 

 

Out of these, Sumitomo Mitsui Banking Corporation‘s Asia Rising Fund, the bank’s venture and strategic investment arm, led a USD 15 million funding round in solar energy platform Aerem Solutions.

Trafigura partners with IFM Investors in the Nala Renewables joint venture and plans to invest USD 2 billion in solar, wind, and power storage projects by 2025.

Societe Generale served as co-arranger and structurer for a USD 1.054 billion financing supporting National Grid Electricity Transmission plc’s UK grid project.

Methodology and Data

This gas-to-power industry outlook draws on the StartUs Insights Discovery Platform to analyze 9M+ companies, 25K+ technologies and trends, and 190M+ patents, news articles, and market reports. The scope is infrastructure-centric and execution-aware. It focuses on turbine manufacturing capacity, LNG logistics, carbon capture integration, hydrogen-ready combustion systems, virtual gas pipelines, and digital plant optimization.

The report tracks gas-to-power operations, including long-lead turbine procurement, export credit-backed LNG financing, flare-gas monetization projects, and modular on-site generation for remote demand. It also evaluates how grid congestion, rising electricity demand, workforce constraints, and equipment backlogs are reshaping capital allocation decisions across utilities, oil & gas operators, and infrastructure funds.