Carbon Capture and Storage Market Size (2023-2028):

The Global Carbon Capture and Storage Market was worth US$ 5.70 billion in 2022 and is anticipated to reach a valuation of US$ 8.75 billion by 2028 and is predicted to register a CAGR of 11.82% during 2023-2028.

Market Overview:

The carbon capture and storage market consist of capturing and storage of carbon dioxide. Carbon capture is a technology that prevents the entry of carbon dioxide emissions produced from the various sources of industrial processes that use fossil fuel as an energy source. This captured carbon dioxide is then transported deep underground in geological formations via ship or pipeline from the point of production.

It helps to lower carbon emissions into the environment, which is crucial to strive for world climate change. According to a research report, the technology accounts for up to 15% of cumulative emissions reductions to meet the global target by 2050. 

Market Drivers:

Continued carbon emissions due to rapid industrialization require carbon reduction because of strict environmental laws and the increasing popularity of sustainable technologies. The rise in emissions is causing global warming that has put carbon capture and storage technology limelight. Many CO2 capture and storage plants are installed by developing countries like UK, U.S., India, and China. The increased demand for the technology is expected to drive the Carbon Capture and Storage market.

Enhanced Oil Recovery (EOR) technology is for the injection of CO2 gas both offshore and onshore for the oil & gas exploration and production industry that uses the captured CO2 and reduces the excess in the atmosphere. Such new technologies will drive Carbon Capture and Storage market to expand.

Market Restraints:

The high installation includes high investments and more operating and storage unit costs that hinder technology adoption. The constraint is not allowing expansion of the market, i.e., by 2050, Carbon dioxide storage capacity is expected to be 700 million tons per year which is 10% of what is required. The high cost of installation, combined with the lack of awareness among people in developing and underdeveloped countries, hampering the future growth of the Carbon Capture and Storage Market.

The selection of a proper storage unit for collected carbon dioxide is a major criterion for the industry. Leakage of CO2 from the storage unit into consumable channels can lead to water unfit for consumption and alteration of soil that affects the population’s survival. 

Continuous leakage is a slow release of CO2 due to improper selection of storage unit in terms of place, storage structure material, and blowout means sudden leakage that causes serious consequences to the ecosystem. Associated safety risk factors in carbon storage can lead to decreased adoption of technology, affecting the development of the Carbon Capture and Storage Market.

Market Opportunities:

Carbon dioxide is required for crude oil extraction, which encourages the Enhanced Oil Recovery (EOR) technique. Combined, the depleting oil reserves are providing an opportunity for the adoption of the CO2 gas injection EOR technique resulting in the demand for carbon capture and storage technique increased, and this accounted for an opportunity for increased demand for the Carbon Capture and Storage market across the world. Government encouragement in the implementation of technology through various pilot projects and initiatives across industries serves as an opportunity for the increase in market demand.

A noticeable increase in the demand for Bioenergy Carbon Capture and Storage (BECCS) is likely to be a prominent growth opportunity in the Carbon Capture and Storage Market in the coming years.

CARBON CAPTURE AND STORAGE MARKET REPORT COVERAGE:

Market Segmentation:

Carbon Capture and Storage Market - By Technology:

• Pre-combustion
• Oxy-fuel Combustion
• Post-combustion

The post-combustion capture technology segment is expected to have a significant growth rate in the market and accounts for 66.91% of revenue in 2022. It refers to the separation of CO2 from flue gas derived from combusting fossil fuels (Coal, Natural gas, or oil) in the air. Power utilization is growing at a high rate in developing economies such as China and India due to rapid industrialization, population growth, and urbanization. Thus, increasing power requirements will eventually promote the Carbon Capture and Storage Market.

Carbon Capture and Storage Market - By Service:

• Capture
• Transportation
• Storage
• Utilization 

Capture service accounts for a major share of the market. It involves capturing CO2 from the source of its emission. It can use in any large-scale emissions process, like coal-fired power generation plants and manufacturing industries, and the cost depends on the technical, economic, and financial factors associated with the production process and CO2 capture technology design and operation.

Carbon Capture and Storage Market - By End-user Industry:

• Oil and Gas
• Coal and Biomass Power Plant
• Iron and Steel
• Chemical

The oil & gas industry is expected to be a major share contributed market segment. Oil & gas is the more required product that, in turn, contribute to carbon emissions. Carbon capture and storage are helping the oil & gas industry to reduce carbon emissions from the atmosphere.

Carbon Capture and Storage Market - By Application:

• Power Generation
• Oil & Gas

The power generation segment is expected to account largest revenue share. Power plants using coal are the most dominant carbon dioxide emitters. Stringent rules and regulations in reducing carbon emissions made the adoption of carbon capture and storage technology that would result in the growth of the market over the forecasted period.

Market Regional Analysis: 

The Global Carbon Capture and Storage Market Report includes the segmentation of regions:

•  North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Due to the growing demand for clean technology and the use of CO2 in augmented oil recovery practices along with the introduction of the FUTURE Act (Furthering Capital Carbon Capture, Utilization, Technology, Underground storage, and Reduced Emissions) to provide incentives for using enhanced oil recovery energy source as capture carbon in North America is expected to have major market share holder. 

Asia-Pacific region is also expected to hold a good market share due to the increased focus of the government on the reduction of emissions from industries. Japan aims at net-zero emissions by 2050.

Impact of COVID-19 on the Carbon Capture and Storage Market:

Power plants and natural gas processing plants are nominally affected by COVID-19. Cement plants, steel industries, and chemical plants are more affected due to pandemic restrictions imposed by various countries that lead to decreased sales for Carbon Capture and Storage Market. The market has adopted the changes and started to operate since the announcement of the relaxation of COVID-19 regulations and regained the growth and development of the market with projects delayed by the pandemic.

Decreased demand for oil and gas due to the pandemic has reduced the Carbon Capture and Storage market globally. A report by International Energy Agency (IEA) in 2020, global demand for oil decreased by 30% compared to 2019.

Market Key Players:

Some of the key players operating in the global carbon capture and storage market are

1. Aker Solutions
2. Dakota Gasification Company
3. Equinor ASA
4. Fluor Corp.
5. Linde plc
6. Maersk Oil
7. Mitsubishi Heavy Industries Ltd.
8. Royal Dutch Shell PLC
9. Siemens AG
10. Exxon Mobil Corporation

Market Key Developments:

• In June 2022, to assess the feasibility of a world-scale CCS project to reduce harmful emissions in the Guangdong Province, an MoU was signed by ExxonMobil, CNOOC, Shell, and China’s Guangdong Provincial Development & Reform Commission.