Carbon Capture Utilization Market Size (2023-2028):

The Global Carbon Capture Utilization Market was worth US$ 2.26 billion in 2022 and is anticipated to reach a valuation of US$ 5.68 billion by 2028 and is predicted to register a CAGR of 16.92% during 2023-2028.

Market Overview:

The global pandemic has emerged as the most serious health issue, halting practically all industrial operations. To contain the coronavirus outbreak, practically all economies have been hampered, and many countries have been placed on lockdown. While this issue is likely to be remedied swiftly, long-term climate change must be addressed with decisive action.

However, the demand for high capital expenditures (CAPEX) to build up new carbon capture plants is the main issue that industry professionals face. Furthermore, the sharp drop in global crude oil prices has harmed the possibility to maximize hydrocarbon output through CO-based EOR activities. Nonetheless, the fiscal stimulus programs put in place by various governments to help economic resuscitation, together with an optimistic outlook for industrial decarbonization, will add to the market's stability.

Market Growth:

The growing focus on lowering CO2 emissions, supporting government programs, and increasing the need for CO2-EOR approaches are driving global demand for carbon capture, utilization, and storage.

Market Drivers:

Carbon capture, utilization, and storage is the process of capturing CO2 and using or storing it instead of releasing it into the environment. The use of fossil fuels and natural gas to generate electricity is the world's leading source of CO2. Carbon capture, use, and storage can all help to keep greenhouse gases out of the atmosphere. As a result, increasing worries about climate change are driving the implementation of carbon capture, utilization, and storage to reduce emissions. Furthermore, governments from many nations are providing numerous incentives to encourage the adoption of carbon capture, utilization, and storage in order to attain net-zero emissions. Tax credits and government subsidies for plant owners are some of the benefits provided by government bodies.

CO2 is utilized extensively in a variety of industries, including food and beverage, manufacturing, and metal production. Previously, the majority of CO2 utilized in EOR processes came from naturally existing reservoirs. However, where naturally existing resources are inaccessible, new technologies are being developed to manufacture CO2 from industrial applications such as ethanol, fertilizer, hydrogen plants, and natural gas processing. Thermal recovery, gas injection, and chemical injection are all EOR approaches. CO2-EOR procedures aid in the production of 30–60% more oil from reservoirs, the restoration of reservoir pressure, the reduction of viscosity, the reduction of oil density, and the increase of permeability of carbonate formations.

These factors are driving the Global Carbon Capture Utilization Market growth.

Market Restraints:

The cost of carbon capture and storage, which includes all upfront costs as well as ongoing operational and maintenance costs, is higher than the cost of non-carbon capture and storage utilizing the same fuel and net electricity output. All components of the value chain are included in the carbon capture and storage cost: CO2 capture at the plant, transportation, and storage. The key cost drivers of the CO2 capture process are efficiency penalties imposed by energy absorbed in capture operations and the inclusion of capture-specific equipment. Initial exploration, site assessment, and site preparation are all taken into account when calculating storage costs. There are other costs associated with monitoring, which prevent plant makers from implementing carbon capture, utilization, and storage.

CARBON CAPTURE UTILIZATION MARKET REPORT COVERAGE:

Market Segmentation: 

Carbon Capture Utilization Market - By Service:

• Capture
• Transportation
• Utilization
• Storage

In 2021, the carbon capture utilization market was dominated by the capture service sector. The first stage of the CCUS process is carbon capture, which entails capturing CO2 from its source of emission. It can be used in a variety of large-scale emission processes, such as coal-fired power plants, gas and oil production, and industrial industries including cement, iron, and steel. The cost of CO2 capture is highly influenced by technical, economic, and financial issues related to the design and operation of the manufacturing process, as well as the design and operation of CO2 capture technology.

Carbon Capture Utilization Market - By Technology:

• Pre-Combustion Capture
• Oxy-Fuel Combustion Capture
• Post-Combustion Capture

In 2020, the carbon capture utilization market was dominated by the post-combustion capture segment. The separation of CO2 from flue gas obtained from combusting fossil fuels – coal, natural gas, or oil – in the air is known as post-combustion capture. Industrialization, population growth, and expanding urbanization have all contributed to a considerable increase in electricity demand in developing nations such as China and India. 

Carbon Capture Utilization Market - By End Use Industry:

• Oil & Gas
• Power Generation
• Iron & Steel
• Chemical & Petrochemical
• Cement
• Others

In 2021, the oil and gas industry held a significant part of the carbon capture utilization market. CCUS is assisting the oil and gas industry in reducing greenhouse gas emissions. Carbon dioxide is stored in deep, onshore, or offshore geological formations using CCUS methods developed in the oil and gas industry for better oil recovery. Carbon dioxide is not soluble in oil in other circumstances. Carbon dioxide injection helps to enhance reservoir pressure, allowing oil to flow toward the production well.

Market Regional Analysis: 

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

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

North America is expected to lead the global industry in 2020, with a total value of USD 1.42 billion, thanks to large investments in R&D and the presence of many high-capacity carbon capture and sequestration plants. Additionally, regional government funding schemes have supported regional expansion. For example, the US Department of Energy (DoE) stated in June 2021 that it will invest USD 12 million in six R&D initiatives pushing direct air capture (DAC) technology to create new instruments for efficiently extracting CO from the environment.

Various large-scale projects in the early stages of development and feasibility studies in countries like Australia and China are expected to grow the Asia Pacific sector. Furthermore, the presence of high-volume storage places, particularly in subsea oil and gas reservoirs with EOR operations, as well as favorable government measures, is expected to benefit the regional environment. For example, in August 2021, the governments of Australia and the United Kingdom announced their plans to promote low-emission technologies such as carbon capture and storage, green hydrogen, CCUS, and small modular reactors, among others.

The existence of historic bulk oil and gas reserves, as well as the enormous untapped potential of improved oil recovery methods to boost hydrocarbon output, are projected to favor the Middle East and Africa CCS market. Other major aspects driving the regional outlook include the introduction of new projects, low injection well drilling costs, and high storage capabilities in massive subsurface deposits.

Market Key Players:

1. Fluor Corporation
2. ExxonMobil Corporation
3. Linde plc
4. Royal Dutch Shell Plc
5. Mitsubishi Heavy Industries, Ltd
6. JGC Holdings Corporation
7. Schlumberger Limited
8. Aker Solutions
9. Honeywell International Inc.
10. Equinor ASA

Market Recent Developments:

• Chevron U.S.A. Inc.'s Chevron New Energies business announced the start of a carbon capture and storage (CCS) project in California's San Joaquin Valley to lower the carbon intensity of its operations. It plans to lower its carbon intensity or the amount of carbon dioxide (CO2) emitted per unit of energy produced, by installing CO2 post-combustion capture equipment, which will catch CO2 and safely store it thousands of feet underground.
• Baker Hughes has acquired Mosaic Materials in order to expand its carbon capture, utilization, and storage business. Mosaic has created a patented adsorbent material that captures CO2 selectively and operates like a high-capacity molecular sponge.