Dual-fuel gensets which can burn natural gas are positioned to capture a growing share of the global genset market from diesel-only gensets, analysis has found.

According to a new report from Navigant Research titled Market Data: Dual-Fuel Generator Sets, a rise in both new installations and retrofits in developed countries is expected to fuel growth for the dual-fuel option, with installations predicted to top 2 GW per year by 2025, up from this year’s 1.1 GW.

Cutting fuel costs and reducing emissions are seen as the main drivers for increasing dual-fuel installations and retrofits in developed countries, while extending runtime through increasing fuel flexibility also figures in the equation. In developing countries, the report found that demand is largely driven by fluctuations in fuel price or supply.

North America is expected to add the most dual-fuel capacity in the next 10 years, with as much as 4.2 GW predicted.

Navigant said the recent oil & gas slowdown could allow dual-fuel genset manufacturers to capture a greater market share, as firms with less capital could shut or be purchased. The report also noted that gas and LNG firms looking for new markets could be productive partners for dual-fuel genset makers. 

But it warned that ‘further education is needed on the benefits of duel-fuel gensets’ in order to open new opportunities through targeted marketing to facility owners and specifying engineers. 

Adam Forni, senior research analyst with Navigant Research, said: ‘Thanks to cheap natural gas, dual-fuel genset adoption surged with the North American oil and gas boom. Growth is now spreading into more segments and geographies, thanks to the lowered emissions, fuel redundancy, and cost savings offered by these products.’