Carbon Capture & Storage Market in India 2024 - 2028

Carbon Capture & Storage Market in India 2024 - 2028

Market Insights:

As awareness regarding climate change and environmental consequences increases, there is a growing emphasis on minimizing greenhouse gas emissions, particularly carbon dioxide. Carbon Capture and Storage (CCS) offers a solution by capturing and storing CO2 emissions, thereby alleviating their impact on the environment. Governments are implementing stricter regulations to curb emissions, compelling industries to embrace technologies that capture and store carbon. Governments are allocating investments for the establishment of critical infrastructure related to Carbon Capture and Storage (CCS), such as pipelines designed for transporting captured CO2 to storage facilities. This infrastructure plays a pivotal role in ensuring the effective implementation of CCS projects. Governments are actively engaging in partnerships with private companies and research institutions through public-private collaborations. These partnerships facilitate collective endeavors aimed at the advancement and implementation of CCS technologies. The increasing focus on hydrogen as a clean energy carrier opens avenues for CCS in blue hydrogen production. The carbon capture and storage market in India bwas valued at INR 13.78 Bn in 2023. It is expected to reach INR 31.40 Bn by 2028, expanding at a CAGR of ~16.06% during the 2024 – 2028 period.

Market Influencers:

Market drivers:

Growing investments, backed by government initiatives, are propelling the Carbon Capture and Storage (CCS) industry. Both public and private sectors are channelling substantial resources into low-carbon technology development, aiming to lower carbon prices and safeguard the environment. The rise of Bioenergy with Carbon Capture and Storage (BECCS) adds momentum as a viable approach to carbon sequestration. Ongoing research and development play a crucial role in enhancing efficiency, performance, cost-effectiveness, and the emergence of new technologies in these areas. Carbon Capture, Utilization, and Storage (CCUS) technology captures CO2 from diverse sources and transports it to sites for utilization or storage. The significant use of fossil fuels for energy is a primary factor in carbon emissions. CCU technology addresses this by reducing greenhouse gas emissions from industrial sources, aligning with worldwide concerns about climate change. Governments are encouraging companies to minimize their carbon footprint and adopt CCU, providing tax incentives to meet net-zero emission objectives.

Market Challenges:

Ensuring the containment of CO2 is a significant challenge in the realm of underground carbon dioxide storage, as potential adverse effects such as water contamination, soil acidification, groundwater alterations, and cryogenic burns are possible outcomes. The selection of an appropriate storage location is pivotal to mitigate these risks. CO2, when injected underground, has the potential to escape through diverse pathways, including geological features like rock fissures. Issues related to wells, including blowouts and ongoing leaks from operational or abandoned wells, present additional concerns. The execution of Carbon Capture and Storage (CCS) projects requires significant initial investments, especially in transmission and storage infrastructure. These costs can be excessively high for individual emitters, emphasizing the necessity for collaboration to collectively shoulder the financial burden.