Carbon Capture and Sequestration

Carbon Capture and Sequestration

Promotion carbon capture deployment at different levels would be required to meet climate goals. Doing so would create ample employment opportunity in the carbon capture industry, including both project jobs (primarily construction) and operational jobs featuring a mix of skill levels. If the technology is deployed globally to address emissions as part of a broad suite of zero or low carbon technologies, the carbon capture industry would employ between 70,000-100,000 construction workers and between 30,000-40,000 facility operators by 2050, with additional employees to build and maintain CO2 transport and storage network. Globally, there are 28 large-scale facilities capture approximately 40 millions of CO2 per year in operation, with US being home of 14 commercial-scale carbon capture facilities, with the capacity to capture around 26 million tons of CO2 annually.

The Carbon Capture and Sequestration Market is expected to grow at a steady rate of around 4% owing to the increasing renewable energy initiatives coupled with the rising concerns associated with carbon emissions. As per IEA estimates the global carbon capture industry will require to scale-up to over 2,000 facilities capturing 2.8 gigatons of CO2 per year to reach temperature target to 2°C. Furthermore, as per the Global CCS Institute, to meet the Paris climate targets, each year between 70-100 carbon capturing facility would be required to be built for the next 30 years.

Human emissions of carbon dioxide and other greenhouse gases are a major driver for climate change globally, it acts as one of the major challenge for the global economy. Owing to this in the past few decades, globally the average temperatures have increased to approximately 0.7℃ higher than 1961-1990 baseline. CCS refers to the process of capturing CO2 from anthropogenic sources such as power generation and/or industrial processes and permanently storing the captured CO2 underground, to prevent excess emissions of CO2 from entering the atmosphere. This is considered as an integral component of achieving decarbonization. The United States Department of Energy (DOE)’s National Energy Technology Laboratory (NETL) have been spending heavily on R&D related CCS for nearly two decades. As per International Energy Agency data for 2020, there is roughly 40 million metric tons of CO2 (MtCO2) capture capacity from power and industrial facilities, globally. However, as per energy outlook analyses, to meet the emission target, it is estimated that CCS would be needed on the scale of upwards of 1,500 MtCO2 being captured per year by 2030 and between 5,000-10,000 MtCO2 being captured per year by 2050.

• Based on service, the Global Carbon Capture and Sequestration Market is categorized into Capture, Transport, and Storage/Sequestration. Currently, Carbon capture segment dominate the market and is expected to maintain its dominance during the forecast period. CCS is witnessed as a critical part of world’s future low-carbon energy portfolio. Leading energy and climate change institutions around the world agree on the crucial role for CCS in cost effectively realizing global emissions reduction targets. Global CCS evidence shows that CCS technology is expected to contribute 17% of the required global emissions reduction target by 2050 (from coal, gas and heavy industry users), and deliver 14% of the cumulative emissions reductions required between 2015 and 2050 period.

For a better understanding of the market adoption of the Carbon Capture and Sequestration industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of Asia-Pacific), Middle East & Africa (Saudi Arabia, UAE, South Africa, and Rest of MEA), and South America (Brazil, Argentina, and Rest of South Africa). North America acquired a substantial share in the Global Capture Carbon and Sequestration market in the year 2022. Transportation sector is the largest greenhouse gas emission in the region followed by electricity and Industry. In U.S., 62% of generated electricity produce from burning fossil fuels, mostly coal and natural gas. Whereas, in Canada, 93% of electricity comes from coal and natural gas. Therefore, the regional countries are focusing more on these sectors to lower the carbon emission from environment. Moreover, increasing and improving rules and regulations in the region is providing support to enterprises to install carbon capture and sequestration plant in their facilities. For instance, in U.S., government updated 45-Q tax credit to lure the companies to capture CO2. The tax credit varies from $12 up to $50 for each metric ton of carbon captured and sequestered, depending on the timing and type of project.

Some of the major players operating in the market include Fluor Corporation, Linde AG, Shell, BP, Chevron, Total SA, China National Petroleum Corporation, ExxonMobil, ADNOC Group.