Carbon Capture and Sequestration

Carbon Capture and Sequestration

Global Carbon Capture and Sequestration Market to Reach US$29.5 Billion by 2030

The global market for Carbon Capture and Sequestration estimated at US$12.8 Billion in the year 2023, is expected to reach US$29.5 Billion by 2030, growing at a CAGR of 12.7% over the analysis period 2023-2030. Capture Service, one of the segments analyzed in the report, is expected to record a 13.9% CAGR and reach US$14.0 Billion by the end of the analysis period. Growth in the Transport Service segment is estimated at 12.3% CAGR over the analysis period.

The U.S. Market is Estimated at US$3.3 Billion While China is Forecast to Grow at 16.8% CAGR

The Carbon Capture and Sequestration market in the U.S. is estimated at US$3.3 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$7.3 Billion by the year 2030 trailing a CAGR of 16.8% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 8.4% and 10.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 9.7% CAGR.

Global Carbon Capture and Sequestration (CCS) Market – Key Trends & Drivers Summarized

Why Is Carbon Capture and Sequestration (CCS) Gaining Global Importance?

Carbon capture and sequestration (CCS) has become a critical strategy in the global effort to combat climate change, driven by the urgent need to reduce greenhouse gas emissions from industrial processes and energy production. CCS involves capturing carbon dioxide (CO2) emissions from sources such as power plants and industrial facilities, transporting the captured CO2, and storing it underground in geological formations or utilizing it in other industrial applications. As the world intensifies its focus on reducing carbon footprints and meeting climate targets, particularly those outlined in the Paris Agreement, CCS is emerging as a pivotal technology for mitigating emissions from sectors that are hard to decarbonize, such as heavy industries and fossil-fuel-based power generation.

The increasing adoption of CCS is fueled by its potential to significantly reduce CO2 emissions while allowing industries to continue operations during the transition to cleaner energy. It is particularly relevant for energy-intensive sectors like cement, steel, and chemical production, where the carbon intensity is high, and alternative solutions like electrification or renewable energy integration may not be immediately viable. Governments and organizations around the world are realizing the importance of CCS in achieving net-zero emissions, with several countries committing to large-scale CCS projects to offset their industrial carbon emissions and transition toward greener economies.

How Are Technological Advancements Driving the Carbon Capture and Sequestration Market?

Technological advancements are playing a crucial role in accelerating the adoption and effectiveness of CCS. Over the past few years, significant progress has been made in improving the efficiency of CO2 capture technologies, reducing the cost of implementation, and scaling up projects for commercial use. One of the key advancements has been in post-combustion capture technologies, where CO2 is extracted from the exhaust gases of power plants and industrial facilities. New chemical solvents, membranes, and adsorbent materials have been developed to enhance the selectivity and capacity for CO2 capture, reducing energy consumption and making the process more cost-effective.

In addition to capture improvements, innovations in carbon utilization are creating new opportunities for sequestered CO2. Researchers and industries are exploring ways to use captured carbon for the production of materials such as fuels, chemicals, and building materials, transforming CO2 from a waste product into a valuable resource. Enhanced oil recovery (EOR), where CO2 is injected into oil fields to improve oil extraction, is also a common use for captured carbon. Furthermore, advancements in geological storage techniques are ensuring that CO2 can be safely and permanently stored in depleted oil and gas reservoirs or deep saline formations, further increasing confidence in the long-term viability of CCS.

What Role Do Policy and Regulatory Support Play in the Growth of CCS?

Policy and regulatory support are key factors driving the growth of carbon capture and sequestration, as governments and international organizations seek to meet their climate commitments and reduce carbon emissions. Many countries have introduced incentives, carbon pricing mechanisms, and financial support for CCS projects to promote their deployment. For instance, the U.S. introduced the 45Q tax credit, which provides financial incentives for industries to capture and store CO2, making CCS projects more economically viable. Similarly, Europe’s Green Deal and various national carbon trading systems are fostering investment in CCS by providing funding and creating a market for carbon credits.

Additionally, governments are developing regulatory frameworks to ensure that CO2 storage sites are managed responsibly and safely, minimizing environmental risks. International cooperation is also facilitating CCS growth, with cross-border projects that allow captured CO2 to be transported and stored in countries with suitable geological formations. These regulatory efforts are being complemented by public-private partnerships, where governments collaborate with industry leaders to develop large-scale CCS infrastructure. The alignment of policy, regulatory support, and industry innovation is essential to overcoming the financial and technical challenges associated with scaling up CCS technology.

Growth in the Carbon Capture and Sequestration Market Is Driven by Several Factors

Growth in the carbon capture and sequestration (CCS) market is driven by several factors, including the increasing pressure to meet global emissions reduction targets, technological innovations, and supportive government policies. One of the key drivers is the growing recognition that CCS is necessary for achieving net-zero emissions, particularly in industries that are difficult to decarbonize, such as cement, steel, and fossil-fuel power generation. As countries commit to stringent emissions reduction goals, CCS is seen as a critical tool for reducing carbon output while maintaining industrial productivity.

Technological advancements are also driving the market, making CCS more efficient and cost-effective. Innovations in CO2 capture processes, such as more efficient solvents and membranes, are reducing the energy and financial costs associated with capturing carbon. Furthermore, the development of new storage and utilization technologies, including carbon-to-products and enhanced oil recovery, is creating additional value streams for captured CO2, increasing the economic attractiveness of CCS projects. The integration of CCS with other low-carbon technologies, such as hydrogen production, is also expanding the market potential for CCS.

Lastly, the expansion of supportive policies and regulatory frameworks is a key growth driver. Governments are offering tax incentives, grants, and carbon pricing mechanisms to encourage the deployment of CCS, while also establishing regulations that ensure safe and effective CO2 storage. This combination of regulatory support and technological innovation is helping to overcome the challenges of scaling up CCS projects, paving the way for the market’s continued growth and its role in the global transition to a low-carbon future.

Select Competitors (Total 54 Featured) -

• ADNOC Group
• Aker Solutions
• BP
• Carbon Engineering Ltd
• Chevron
• China National Petroleum Corporation
• Dakota Gasification Company
• Equinor
• Exxonmobil Corporation
• Fluor Corporation
• General Electric
• Halliburton
• Hitachi, Ltd.
• Honeywell International Inc.
• Linde AG
• Mitsubishi Heavy Industries, Ltd.
• NRG Energy
• Schlumberger Limited
• Shell Global
• Siemens AG
• Total

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