Carbon Capture and Storage Market Size to Cross $7.92 Billion Revenue by 2030

Carbon Capture and Storage Market Snapshot

“The Global Carbon Capture and Storage Market is expected to grow rapidly at a 13.5% CAGR consequently, it will grow from its existing size of from $4.45 Billion in 2023 to $7.92 Billion by 2030.”

What exactly is carbon capture? use and storage (CCUS)?

The term "CCUS" refers to a set of technology that allows the reduction emissions of CO2 (CO2) emissions from single sources like refineries, power plants as well as other facilities for industrial use or the elimination of CO 2 from the atmosphere.

CCUS is anticipated to play a significant part in achieving the goals of global climate change. Leading organizations like those of the International Energy Agency (IEA), International Renewable Energy Agency (IRENA), Intergovernmental Panel on Climate Change (IPCC) and Bloomberg New Energy Finance (BNEF) have all come up with long-term energy forecasts which rely on the quick expansion of CCUS to keep the rise in global temperatures to 1.5degC.

Demand Outlook

Carbon storage and capture is a revolutionary technology for capturing and storage of carbon dioxide (CO2) generated by the combustion of fossil fuels during power generation as well as industrial operations. The technology can absorb approximately 90% of CO2 emissions, and prevent the CO2 (CO2) from getting into the atmosphere.

The CO2 that is captured is later used to produce valuable products or stored beneath the earth inside geological formations. The majority of CO2 is transported via pipelines or on ships that transport carbon from storage and capture facilities to their destination.

Growing use of carbon storage and capture techniques, including post-combustion and pre-combustion and oxy-fuel combustion across major industries, including power and oil generation facilities and power generation plants, is the main force in the global storage and capture market.

As the global temperature rises and sustainability issues are increasing, many major industries that consume fossil fuels are moving towards carbon storage and capture techniques in their installations.

The extensive use of fossil fuels in a range of industrial processes causes the release of greenhouse gases such as carbon dioxide. The accumulation of these gases in the atmosphere can trigger irreversible effects like ozone depletion as well as climate change. To combat this, companies are using CO2 capture as well as storage technology. The adoption of these technologies stops CO2 from escaping into the atmosphere, and helps industries meet environmental standards.

Presently, Carbon storage, capture and utilization (CCUS) facilities across the globe have the capacity to capture more than 40 MtCO2 every year, according to the International Energy Association (IEA).

Countries such as China and the USA as well as China appear to be emerging global leaders in carbon storage and capture technology. They have the largest amount of carbon storage units around the globe.

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Carbon Capture and Storage Market Dynamics

Growth Factors

Which are Some Prominent Factors Determining the Growth of Carbon Capture and Storage Market?

The rapid growth of industrialization and the increasing need to reduce emission of carbon dioxide, introduction of strict environmental regulations and the rising demand for sustainable technologies are just a few of the main factors driving the expansion of the carbon storage and capture market.

The climate change issue has become a top issue for world leaders over the past few years. It has impacted the lives of individuals as well as animals and the natural environment across the globe, and forced nations to adopt various measures.

The increasing need to address global warming as a result of higher emissions has brought the carbon storage and capture technology on the radar. Major industries around the world that are the largest emitters of carbon are now increasingly embracing CCS techniques to lower their environmental footprint. This is giving a boost to the expansion of the market for carbon capture and storage and is expected to continue into the near future.

All governments around the globe are taking part in various initiatives to promote the use in carbon storage technology. They are continually implementing new regulations that will reduce the emissions of carbon dioxide from power generation and industrial power plants. This will continue to increase an increase in demand CCS technologies in the forecast time.

Oil and Gas is gaining recognition as the ideal location to store carbon and capture techniques because of the increasing amount of improved oil recovery (EOR) projects. As per the International Energy Organization's (IEA's) Database, about 500 million barrels are made of oil every day with CO2-EOR.

In EOR methods, CO2 is introduced into the existing oil field that increases the pressure of the reservoir and pushes the oil towards production wells. A rising demand for CO2 during the oil-enhanced recovery process is expected to encourage the use of CO2 capture as well as storage techniques in the gas and oil industry.

The resulting increased awareness among the population in the developing and less developed regions of the importance carbon storage and capture technology to combat worldwide warming as well as greenhouse gas emissions will continue to expand the carbon storage and capture market in the coming years.

Growth Drivers

"Varied Applications of Captured Carbon to Increase Its Industrial Adoption"

Carbon storage and capture facilities are utilized to capture CO2 that is released in the atmosphere by industries, agriculture as well as oil and gas industries, and also when conducting EOR operations. Due to its efficiency in reducing greenhouse gas emissions within the gas and oil industry and other sectors, the use of carbon captured in the process of enhanced oil recovery is a popular application.

Furthermore, the process of capturing and storing carbon dioxide released by power generation and industrial processes could stop carbon dioxide from entering the atmosphere. The use of technologies for carbon capture and storage can drastically decrease the emissions of CO2 generated by energy system.

Furthermore, the utilization of carbon storage and capture in the industrial industry has grown as it is also utilized for industrial processes of large scale such as refineries, iron and steel plants, production of cement ammonia production, chemical processing as well as the production of biofuels.

The application of carbon storage and capture is increasing in the agricultural sector, biomass-to energy where biomass is utilized to generate energy to reduce CO2 emissions, capture as well as storage (BECCS) systems. This shows how bioenergy carbon capture as well as storage can grow faster than (BECCS). These factors are driving the CCS market for service in the long-term.

Restraints

The growth of the market is hindered due to safety concerns over storage techniques and locations. One of the major issues that CO2 storage poses to the surface of Earth is leakage of CO2. Carbon dioxide leaks can result in cryogenic burning as well as acidification of the Earth and changes to groundwater and water pollution. Thus, a suitable location for the storage of CO2 is crucial to assess the magnitude and risk.

In addition, infrastructure development to store and capture carbon will require a huge quantity of capital. Despite the significance of CCUS to achieve a sustainable energy transition, its implementation has been extremely slow in the last few years due to the amount of money needed to upgrade the infrastructure.

Carbon Capture and Storage Market Segment Analysis

Why is the Oil & Gas Industry the Most Alluring in the CCS Market?

Carbon storage and capture (CCS) is used within the petroleum and natural gas industry to reduce the greenhouse gases emissions. To increase oil recovery companies in the gas and oil industry have developed CCS systems for storing carbon dioxide in the onshore or offshore deep geochemical formations.

Since carbon dioxide is not soluble within oil The addition of more can increase the pressure in a reservoir which assists in pushing oil away from oil production lines. For instance, in Texas (the United States) carbon dioxide was employed in EOR procedures for more than 30 years. In excess of 20 percent of the total oil production is derived via enhanced oil recovery and some areas recover 70 percent of the initial oil they produced.

Which Technology Is Expected to Drive Significant Growth?

There are a variety of technologies that can be utilized to capture CO2 in the point where it is being released. There are three kinds: Oxy-fuel combustion systems carbon capture prior to combustion, in addition to post-combustion carbon capture which is the most common method employed in power plants today.

In post-combustion carbon capture, CO2 is removed from emissions from combustion. The application for CCS technology to reduce the emissions of industrial carbon dioxide has grown. CCS technology that is pre-combustion was developed in response to industrial facilities that have economically efficient pre-combustion capture devices in place.

However, pre-combustion capture technology is just beginning to be used within power plants. The process involves changing gas into fuel and then getting rid of CO2. Pre-combustion capture is more affordable than other options which is why only recently constructed facilities have seen an rise in the demand for carbon capture prior to combustion and storage.

Competitive Landscape of the Carbon Capture and Storage Market

• Exxonmobil Corporation
• Schlumberger
• Huaneng
• Linde AG
• Sulzer
• Equinor
• NRG
• AkerSolutions
• Shell
• Skyonic Corp.
• Mitsubishi Hitachi
• Fluor
• Sinopec

Recent Developments in Carbon Capture and Storage Market

​Oct 17, 2023: ExxonMobil's acquisition of Pioneer Natural Resources, a shale oil biggie in the Permian Basin, for $59.5 billion. Microsoft's acquisition of gaming giant Activision Blizzard for $68.7 billion, giving the tech giant access to an additional raft of popular games for its Xbox player. The merger in the oil and gas space makes it clear that some energy majors do not expect oil and gas to go quietly into the night soon. They expect these fuels to remain viable and active long enough for the acquirer to make good on its giant investment. Other oil majors are scouting around for shale partners to acquire.

In December 2022, Malaysia state-owned oil and gas company Petroleum Sarawak Bhd (Petros) signed an agreement with South Korean steel-making company Posco Group to collaborate on the carbon capture and storage (CCS) development business in a plant situated at Sarawak, Malaysia.

In December 2022, Oil and Natural Gas Corporation Limited (ONGC) signed an agreement with Shell for cooperation in Carbon Capture, Utilization, and Storage (CCUS) studies. The collaboration will focus on a joint CO2 storage study and EOR screening assessment for key basins in India, including depleted oil and gas fields and saline aquifers.

On August 2022, Norway based international energy company, Equinor ASA, partnered with Wintershall Dea AG to explore opportunities in comprehensive carbon capture and storage (CCS). The CCS project aims to develop value chain and infrastructure for safe transportation, injection, and storage of CO2 in suitable reservoirs on the Norwegian Continental Shelf in order to make a significant contribution to reducing greenhouse gas emissions in Europe. Comprehensive CCS project will connect Norway and Germany with an estimated pipeline capacity of 20 to 40 million tonnes per year by 2037.

On March 2022, Norway based leading carbon capture provider, Aker Carbon Capture ASA, partnered with SINTEF to develop next-generation carbon capture, utilization, and storage (CCUS) technology. The CCUS technology is a group of technologies for capturing CO2 and securely utilising or storing it deep underground. This partnership will help to accelerate new product development strategy and create new innovative solutions for CO2 emission reduction. This market strategy will significantly support in carbon capture, utilization, and storage (CCUS).

In June 2022, for instance, ExxonMobil, CNOOC, Shell, and China’s Guangdong Provincial Development & Reform Commission signed a MoU to assess the feasibility of world-scale CCS project to reduce harmful emissions in the Guangdong Province, which is one of the country’s largest industrial areas.

In order to develop integrated carbon capture and storage solutions, Fluor Corporation announced its memorandum of understanding (MOU) with Carbfix, the first carbon dioxide (CO2) mineral storage operator in the world. Together, the businesses seek to lessen the effects of climate change by assisting in the decarbonization of challenging industries with high greenhouse gas emissions, such as cement, steel, and aluminum.

Directors of Dakota Gas approved the construction of the Dakota Carbon Pipeline, a 6.8-mile pipeline that will transport collected CO2 from the Great Plains Synfuels Plant to a long-term geologic storage reservoir close to the plant.

Carbon Capture and Storage Market Regional Insights

Will the USA Continue its Dominance in the Global Capture and Storage Market?

Based on Future Market Insights, North America led by the USA will be the largest marketplace for storage and carbon capture techniques over the forecast time. This North American carbon capture and storage market is driven by the substantial presence of the leading industries growing demand for cleaner technology, the increasing use of CO2 in advanced methods of oil recovery, as well as an increase in the amount of market players from regional regions.

North America has the largest amount of carbon storage and capture projects around the world. Countries like Canada and the USA and Canada have seen a surge in demand for carbon storage and carbon capture technologies which is reflected in an increase in enhancing oil recovery processes. As per the International Energy Association (IEA) approximately 50 carbon capture initiatives were revealed in the fuel transformation and industry sector between January 2021 through August 2021 in the USA

Furthermore, a variety of initiatives are being undertaken by the governments of these countries to reduce carbon emissions levels to a minimum. For example, in 2021, USA President Joe Biden signed an executive order to achieve an all-carbon-free energy target in 2032. This will open up lucrative growth opportunities in the carbon storage and capture market in the coming years.

What's the reason behind Asia-Pacific emerging as an attractive Carbon storage and capture Market?

The carbon storage and capture marketplace within Asia Pacific is poised to grow exponentially during the forecast timeframe due to the rapid development of industry and rising levels of air pollution and the favorable support of the government.

A majority of Asia Pacific regions still rely on fossil fuels to generate electricity. In the process, the level of air pollution across these zones is increasing rapidly and is forcing power plants as well as other industries to adopt the carbon storage and capture techniques.

Leading nations like China and India are always launching innovative carbon storage and capture schemes to reduce the emission from greenhouse gas emissions. For example, in 2021, the Chinese National Offshore Oil Corp (CNOOC) began the nation's first carbon storage and capture scheme located in South China sea.

Segments Covered in the Carbon Capture and Storage Market

Carbon Capture and Storage Market Insights By Technology

• Pre Combustion
• Post Combustion
• Oxy-Fuel Combustion

Carbon Capture and Storage Market Insights By Application

• Oil & Gas
• Chemical Processing
• Power Generation
• Others

Carbon Capture and Storage Market By Region

• North America
• Latin America
• Europe
• East Asia
• South Asia
• Oceania
• Middle East and Africa (MEA)

Frequently Asked Questions:

What is the anticipated growth of the carbon capture and storage market until 2030?

Global Carbon Capture and Storage Market is expected to grow rapidly at a 13.5% CAGR consequently, it will grow from its existing size of from $4.45 Billion in 2023 to $7.92 Billion by 2030.

Which region is forecast to be the most lucrative for carbon capture and storage market growth?

North America will continue to remain the most lucrative market for carbon capture and storage technologies during the forecast period.

Which are some prominent carbon capture and storage manufacturers?

Schlumberger, Linde AG, Alstom, Sulzer, Shell, Mitsubishi Hitachi, and Sinopec are some prominent carbon capture and storage manufacturers.

Which End-Use Industry is the Most Potential Consumer of CCS Services?

The oil & gas industry is the most prominent industry to deploy carbon capture and storage infrastructure to limit the emission of carbon into the atmosphere.