Abstract The Renewable energy power generation capacity has been rapidly increasing in China recently. Meanwhile, the contradiction between power supply and demand is becoming increasingly more prominent due to the intermittence of renewable energies. On the other hand, on the mitigation of carbon dioxide (CO2) emissions in China needs immediate attention. Power-to-Gas (PtG), a chemical energy storage technology, can convert surplus electricity into combustible gases. Subsurface energy storage can meet the requirements of long term storage with its large capacity. This paper provides a discussion of the entire PtG energy storage technology process and the current research progress. Based on the comparative study of different geological storage schemes for synthetic methane, their respective research progress and limitations are noted. In addition, a full investigation of the distribution and implementation of global PtG and CO2 capture and storage (CCS) demonstration projects is performed. Subsequently, the opportunities and challenges of the development of this technology in China are discussed based on techno-economic and ecological effects analysis. While PtG is expected to be a revolutionary technology that will replace traditional power systems, the main issues of site selection, energy efficiency and the economy still need to be adequately addressed. Additionally, based on the comprehensive discussion of the results of the analysis, power-to-gas and subsurface energy storage implementation strategies, as well as outlook in China are presented.