Carbon Capture and Storage (CCS) Market

Carbon Capture and Storage (CCS) Market Size Analysis

According to a research survey conducted by ChemView Consulting, in 2022, the Global Carbon Capture and Storage (CCS) Market was worth US$ 4,020.0 Mn and is expected to grow at a CAGR of 12.3% over the forecast period. The market is expected to hit US$ 12,824.0 Mn by 2032 end.

This growth is mainly driven by the following factors:

• To achieve the target of net zero emissions by countries, CCS has to grow 120 times by 2050.
• To meet the net-zero commitments made by 64 governments at COP26, 715 MTPA are needed by 2030, and 4,200 MTPA by 2050.
• Rising action by governments, investors, and industrial players.
• Industrial clusters could be a promising business model for lowering CCUS sector costs.

Carbon capture and storage (CCS) has gained popularity worldwide. Up to 90% of the carbon dioxide emissions produced by burning fossil fuels can be absorbed and stored using carbon capture and storage (CCS).

Fossil fuels are extensively used in several industrial activities, including electricity, cement, steel, and cement products. Carbon dioxide and other greenhouse gases are released into the atmosphere due to the extensive usage of fossil fuels.

The atmosphere’s ever-increasing concentration of these gases has contributed to several irreversible processes, including ozone depletion and climate change.

Market Dynamics

REGULATORY CHANGES WILL DRIVE THE MARKET TO NEW HEIGHTS

Many CCUS technologies are already mature, such as compression and pipelines, while others rely on bespoke brownfield projects that can be difficult to standardise. This means that revenues must balance out business cases.

Tax breaks, direct subsidies, and price support mechanisms are already being used to encourage CCUS investment. In the United States, for example, the 45Q tax credit provides a fixed payment per tonne of captured carbon dioxide sequestered or used. Tax credits like 45Q, on the other hand, primarily benefit established revenue-generating companies with significant tax burdens to reduce, while pre-revenue start-ups and innovators with limited tax burdens benefit less.

However, direct pricing, price support, and market-making are not the only ways for regulators to stimulate the industry. Product standards, for example, mandating certain volumes of green commodities, such as steel or cement, in public or private construction projects, or structuring markets to protect more expensive, CCUS-enabled products, are equally important.

Regulatory safeguards are also useful in stimulating the CCUS industry. In the United Kingdom, for example, the decision to phase out unabated gas power by 2035 effectively forces gas providers to switch to hydrogen or install CCUS in order to continue to deploy flexible power to balance renewables.

INCREASING WORRIES ABOUT ENVIRONMENTAL RISKS AND PERMANENT CHANGES FUEL THE MARKET

One of the key drivers responsiblef for he rise of the market is rapid industrialization, the rising need to reduce carbon emissions, the implementation of strict environmental regulations, and the increasing popularity of sustainable technologies.

The sole approach for lowering emissions from major industrial plants is CCS. It could shift the course of the fight against global warming. When combined with bioenergy technologies for power generation, CCS can produce “negative emissions,” which reduce CO2 in the atmosphere.

Implementing CCS technology has become urgently necessary, particularly in nations like China and the U.S., which are among the top emitters of CO2. Long-term prospects for the global carbon capture and storage sector would be improved.

HIGH INVESTMENT COSTS HAMPER THE MARKET GROWTH

Without increasing revenue, integrating CCS technologies raises capital expenditures for equipment technology, operating costs, and transportation costs. The technology hasn’t been widely adopted due to the cost of carbon capture and storage. Carbon pricing regulations are still not strong enough to make CCS commercially viable.

GREEN MITIGATION TECHNOLOGIES REPRESENT THE MARKET’S BIGGEST OPPORTUNITIES

Growing climate change awareness and developing clean, green mitigation technologies represent the market’s biggest opportunities. Additionally, this sector has a chance to create cutting-edge CO2 storage technology that is secure and long-lasting.

Market Segments Covered in Report

By Technology:

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

By End-Use Industry:

• Oil and Gas
• Coal and Biomass Power Plant
• Iron and Steel
• Chemicals
• Others

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why are oil & gas projected to ensure the most revenue during the forecast period?

The oil and gas sector uses carbon capture and storage (CCS) to cut greenhouse gas emissions. The oil and gas industry has created CCS systems for better oil recovery to store carbon dioxide in deep geological formations, whether onshore or offshore.

Because of the considerations above, the carbon capture, utilization, and storage (CCUS) market expect oil and gas to continue to be the most appealing sector.

Why is the post-combustion capture expected to expand the fastest during the forecast period?

In 2021, the post-combustion capture market had the highest share, with 55.6%. Post-combustion capture, CO2 is taken out of the air after fossil fuels are burned in power plants. Flue gases at power plants or other point sources are used to extract CO2. Other industrial applications are actively using the technology as well.

Because PCC can often be retrofitted into existing industrial plants and power stations without significantly altering the original facility, post-combustion capture is the most common study topic. For both new and existing power plants, post-combustion capture provides significant operational flexibility (partial refit, zero to full capture operation) and can adapt to market conditions.

For example, Post Combustion Capture enables inexpensive solar thermal collectors to generate the necessary heat to separate CO2 from sorbents, substantially decreasing the loss of electrical production caused by capture. Renewable technologies can be incorporated into this process.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• The North American continent dominated the world with a market share of 55.0%. As the need for clean technology and the use of CO2 in EOR practices rises, it is anticipated that carbon capture and storage technology will increase in countries like the United States and Canada. The need for CO2-EOR methods has increased as a result of this.
• The APAC region has the fastest growth, expanding at a CAGR of 44.3% from 2022 to 2032. Governments and businesses in the Asia Pacific region have shown significant support for commitments to achieve net-zero emissions over the past year, which has sparked CCS investment and fueled the market’s expansion. The deployment of CCS projects has increased due to the growing industrialization rate and the rising investment in the development of manufacturing facilities.

Competition Analysis

Leading companies in the market for carbon capture and storage are constantly concentrating on creating environmentally friendly carbon capture and storage technologies.

Companies must take four steps to scale and capitalize on CCCUs:

• Businesses should strive to deliver positive business cases based on four revenue sources: subsidies and regulatory interventions, a willingness to pay for lower-carbon-intensity products, CO2 valuation as a feedstock, and a voluntary carbon market.
• Collaboration and coordination can assist industry players in becoming serious about the shared infrastructure required for CCUS. Current clusters have been slow to mobilise, and lessons must be quickly transmitted to the next generation of projects in order for them to get up and running faster.
• There are many promising technologies, but many tech companies are stymied by wary customers. Pilot units that demonstrate the technology and make subsequent units more affordable can generate significant benefits with relatively small investments.
• Advocate for carbon taxes, higher ETS levels, or other tariff barriers that favour low-carbon products delivered via CCUS and can level the playing field to create a secure investment environment.

Some of the key developments that have taken place in the Carbon Capture and Storage (CCS) Market include:

• In September 2021, Enterprise Products Partners, a provider of energy services, and Chevron collaborated to research carbon capture, storage, and use in the US.
• Companies like Calpine, Chevron, Dow, and LyondellBasell have agreed to start looking into possibilities that could result in the capture and secure storage of up to 50 million TPY of CO2 by 2030 and roughly 100 million TPY by 2040.
• In June 2021, The CCS+ Initiative, led by Northern Lights and supported by Total Energies, Oxy Low Carbon Ventures, South Pole, Perspectives, and Carbon Finance Labs, aims to advance carbon accounting for a variety of carbon capture, utilization, storage, and removal technologies. These technologies are supported by thorough cradle-to-grave life cycle assessments (LCAs) and stringent verification standards to ensure environmental integrity.

A list of some of the key suppliers present in the market are:

• ExxonMobil Corporation
• Schlumberger
• Huaneng
• Linde AG
• Sulzer
• Equinor
• NRG
• Aker solutions
• Shell
• Skyonic Corp.
• Mitsubishi Hitachi
• Fluor
• Sinopec

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.