According to Techsci Research, the global carbon capture utilization and storage market is expected to be valued at USD 3.61 billion in 2023, and is expected to grow at a robust CAGR of 4.53% during the forecast period till 2029.
Carbon Capture and Storage (CCS) technology has emerged as a result of growing concerns over the impact of carbon emissions on the environment. As this technology has the potential to be a comprehensive solution to achieve the ambitious CO2 emission reduction targets and climate management set by many governments around the world, most governments are supporting the adoption of the technology through demonstrations in various sectors of commerce.
For more detailed market insights, request a sample copy of the report: https://www.techsciresearch.com/sample-report.aspx?cid=27
CCS technology has been considered feasible in recent decades due to growing global concerns about the adverse effects of carbon emissions. As carbon capture and storage is recognized as a potential large-scale solution to achieve the high levels of CO2 emission reduction and climate control currently advocated by governments and international organizations, many governments are actively supporting the adoption of the technology in many industries through pilot projects.
Compared to other application areas, the demand is expected to grow rapidly in this field as several large-scale development projects of CCUS are planned. SkyQuest’s detailed research has found that the FUTURE Act is formulated under section 45Q of the bill to encourage the capture of carbon dioxide emissions from industries and power generation companies for use in EOR. The acronym stands for “Promoting Capital Carbon Capture, Utilization, Technology, Underground Storage, and Emission Reduction.” Due to the advancement of shale gas technology and the current government’s low interest in carbon capture, the market for CCUS is expected to grow slowly in the country, thereby expanding North America’s market share in the carbon capture and storage industry.
Carbon Capture, Utilization and Storage Market Dynamics Carbon Capture, Utilization and Storage Market Drivers
Regulatory mandates and incentives:
A restrictive environmental regulatory framework and subsidies for low carbon emissions have led to the widespread use of Carbon Capture and Storage (CCS) technology. Policies such as carbon pricing, emission reduction commitments, and renewable energy obligations encourage industry to deploy CCS systems to comply with regulations and avoid financial penalties. In addition, government funding and tax incentives are crucial factors in stimulating private sector participation, accelerating technology development, and creating a vibrant market. Technological Advancements and Innovation:
Improvements and innovations in CCS technology continue to act as a key factor in the growth of the market. R&D expenditure is primarily aimed at addressing technical issues related to improving the operational costs, efficiency, and scalability of CCS facilities, making them more desirable and attractive. Innovations in capture technologies such as solvent approaches, membrane separation, and direct air capture require less energy inputs, reducing the cost of deploying CCS.
Download a free sample report:
Demand – drivers and constraints
The demand drivers for the global carbon capture and storage market are:
• Favorable government policies encouraging the deployment of CCUS technologies • Increasing demand for CO2 for Enhanced Oil Recovery (EOR) • Increasing adoption of net-zero emissions targets
The market is also expected to face several constraints due to the following challenges:
• High initial costs of carbon capture and storage processes • CO2 leakage from underground storage reservoirs
Segment Insights
Technology Insights
Based on technology category, the post-combustion carbon capture segment emerged as the dominant segment in the global carbon capture utilisation and storage market in 2023. PCC technology is highly compatible with existing fossil fuel-based power plants, especially coal-fired and natural gas-fired facilities. It can be retrofitted to these plants without significant changes to the existing infrastructure, making it a cost-effective and viable option to reduce emissions from existing power generation facilities.
PCC technology can be applied to a wide range of industrial processes other than power generation, such as cement production, steel manufacturing, petrochemical refining, etc. Its versatility of application makes it a valuable solution for reducing CO2 emissions in various sectors, contributing to its dominance in the CCUS market.
PCC technology is an established and proven method for capturing CO2 emissions from exhaust gases produced during combustion processes. Its reliability and scalability have been demonstrated through numerous commercial-scale projects around the world, providing a competitive advantage in the CCUS market.
Application Insights
The oil and gas industry segment is expected to witness rapid growth during the forecast period. The oil and gas industry is one of the largest sources of anthropogenic carbon dioxide (CO2) emissions globally due to the burning of fossil fuels for energy production. As a result, the industry is facing immense pressure to reduce carbon emissions and mitigate climate change by deploying CCUS technologies to capture and store CO2 emissions.
The oil and gas industry has extensive infrastructure that can be repurposed for CCUS projects, including pipelines, wells, storage facilities, etc. This existing infrastructure provides a cost-effective and efficient means of transporting and storing captured CO2, making the industry in an easier position to deploy CCUS technology than other sectors.
Many countries and regions have introduced regulations and carbon pricing mechanisms to limit greenhouse gas emissions, encouraging the oil and gas industry to invest in CCUS technology as a compliance measure. Regulatory requirements for emissions reduction and carbon neutrality are driving the adoption of CCUS technology in the oil and gas sector.
Key Market Players
Fluor Corporation ExxonMobil Corporation Linde plc Shell plc Mitsubishi Heavy Industries, Ltd JGC Holdings Corporation Equinor ASA Schlumberger Limited Carbon Clean Solutions Limited Hitachi, Ltd
Download a free sample report:
Regional Insights of Carbon Capture, Utilization and Storage Market North America held the largest revenue share in 2023, accounting for approximately 36.69% of the total revenue. This is attributed to the increasing demand from the oil & gas industry and stringent government regulations to reduce carbon emissions. According to the Global CCS Institute, there are more than 24 CO2 capture facilities worldwide, of which 12 are in the United States. With a large industrial base and friendly regulatory structure, North America is a major player in the global CCS sector. Installed capacity and project development will determine the North American market leadership in the global carbon capture and storage.
Asia Pacific is expected to witness the most accelerated growth rate in terms of the global CCS market. In countries such as China, India, and South Korea, the demand market is increasingly shifting towards industry, cities, and energy demand, which is driving the expansion of CCS technology and various carbon emission reductions. Governments with various carbon pricing mechanisms and clean energy targets are encouraging investments in CCS technology across the power sector, industries, and refineries. The Asia Pacific CCS market has witnessed tremendous expansion in terms of CCS capacity and projects, and in the near future, the region will be a stimulant for the overall development of the CCS market around the world.
For further information:
Techsci Research LLC
420 Lexington Avenue, Suite 300,
New York, USA – 10170
Phone: +13322586602
Email: sales@techsciresearch.com
Web: https://www.techsciresearch.com/