Carbon Capture and Storage (CCS) Market

Carbon Capture and Storage (CCS) Market Outlook

Global Carbon Capture and Storage (CCS) Market Holds Substantial Opportunity

The Carbon Capture and Storage (CCS) Market is valued at USD 4.1 Bn in 2026 and is projected to reach USD 27.4 Bn, growing at a CAGR of 31% by 2033. In terms of volume, the carbon capture and storage market is expected to add 101 MTPA from 2020-2026. Carbon dioxide (CO₂), regarded as a key greenhouse gas, has far-ranging environmental and health effects. Carbon emissions from fossil fuel-based power plants and industrial sources account for more than 60% of global greenhouse gas emissions. Albeit, year-on-year increase in carbon dioxide emissions from power and industrial facilities, the technological innovations and policy developments has provided encouraging signs for the future of carbon capture and storage (CCS) technologies.

CCS can capture more than 90% of the carbon dioxide (CO₂) emissions, pro­duced from the use of fossil fuels in electricity generation and industrial processes, thereby preventing the carbon dioxide from entering the atmosphere. In 2019, more than 30 billion metric tons of carbon dioxide was released from industrial activities and burning of fossil fuels. Of which, close to 35MT of carbon dioxide was captured through CCS technology. Globally, only 0.1-0.2% of carbon dioxide released from power plants and industrial facilities are captured and stored through CCS technology. This provides immense potential for large-scale deployment of carbon capture and storage technology across the globe, which highlights a massive untapped opportunity in carbon capture and storage market.

Government Support, Paris Climate Change, and Kyoto Protocol Climate Change Act as Boosters to Carbon Capture and Storage Market

In the fight against greenhouse gas emissions, carbon capture and storage market can be a game-changer. Its ability to capture & store carbon dioxide (CO₂) emissions, at pre-combustion and post-combustion levels addresses the global concern related to climate change. The Paris Climate Agreement, and Kyoto Protocol treaty signed on climate change among different nations remains the key driver for carbon capture and storage market. Globally, the iron and steel, cement and chemical industries transmit carbon from their industrial processes, and high-temperature heat necessities. They are among the hardest to decarbonise. Furthermore, International Energy Agency (IEA) infer that accomplishing net-zero outflows in difficult to-decrease businesses like these might be unthinkable and, best case scenario, more costly without CCS technology. Carbon capture and storage is perhaps the most advanced and financially savvy choice.

The key restraint facing the carbon capture and storage market is no direct financial benefit to any company adding CCS technology to their facilities due to a free and unregulated market structure. Even enhanced oil and gas recovery technologies could use other inert gases such as nitrogen in their enhanced recovery methodologies or CO₂ from natural sources. Hence, the CCS market is fully dependent on regulators putting a price or tax on carbon emissions. Post COVID-19 pandemic, delays in funding in CCS projects due to capital expenditure cuts by major oil and gas companies, is expected to affect the performance of carbon capture and storage market. However, there are numerous planned carbon capture and storage projects expected to get fully commercialized by 2030.

Oil & Gas Companies Remain the Key End User Segment of Carbon Capture and Storage Market

In 2020, enhanced oil recovery (EOR) dominated the global carbon capture and storage market with 61% share. Majority of capture CO₂ is utilized by the oil & gas companies for EOR process and for blue hydrogen production. In most CO₂ EOR projects, much of the CO₂ injected into the oil reservoir is only temporarily stored. More precisely, decommissioning of an EOR project typically involves the blowing down of the reservoir pressure, meant to maximise the amount of recovered oil. As a consequence, just a small amount of injected CO₂ remains dissolved in the immobile oil.  This is the reason some question EOR as a permanent storage option. Dedicated geological storage are also used to store CO₂ which is received through pipeline and tankers. Majority of stored CO₂ is utilized in oil & gas operations.

Europe Remains a Prime Carbon Capture and Storage Market

As of 2020, at least 26 commercial-scale carbon capture projects are active/operating around the world with 21 more in early development and 13 in advanced development reaching front end engineering design (FEED). Industrial processes where large-scale carbon capture has been demonstrated and is in commercial operation include coal gasification, ethanol production, fertilizer production, natural gas processing, refinery hydrogen production and, most recently, coal-fired power generation. In 2020, North America dominated the global carbon capture and storage market. The U.S. constituted the major share of the global carbon capture and storage (CCS) market with 13 active facilities. In North America, U.S. Department of Energy is another reason for the growing list of projects in development, committing or awarding more than US$270 million in co-funding agreements in 2020. The versatility of CCS is evident in the U.S. in 2020, carbon capture and storage (CCS) projects were announced on cement manufacturing, coal-fired power plants, gas-fired power plants, waste-to-energy plants, ethanol facilities, chemical production.

Across Europe, more than 11 commercial projects are targeting operation before 2030. In Europe, 13 commercial facilities are in operation or various stages of development (1 in Ireland, 1 in The Netherlands, 4 in Norway, 7 in the U.K. In 2020 the launch of the first call for projects under the EU’s US$11.32 Bn Innovation fund; expected to be a major source of funding for both the planning, and the construction and operation of CCS across the EU. The carbon capture and storage market in Europe is expected to witness strong growth in the next few years. In Asia Pacific, several countries that have started establishing their CCS strategies as part of their long-term climate change commitments. Currently, China, Australia, and South Korea dominates the Asia Pacific carbon capture and storage market. Asia Pacific region has 10 commercial CCS facilities either operating or in various stages of development. Several new commercial projects have entered engineering design or early development stages in 2020. The region has a great variety of CCS pilot projects, which includes natural gas processing, fertilizer, hydrogen production, waste to energy, iron/steel, coal to chemical, cement. In the Middle East & Africa, more than three commercial CCS facilities in operation; two in natural gas processing and 1 in iron and steel production. While, in Latin America, Brazil is the only nation which is active in carbon capture and storage market.

Global Carbon Capture and Storage Market: Competitive Landscape 

Key players involved in the global carbon capture and storage market includes:

• Siemens AG
• GE
• Babcock & Wilcox Enterprises, Inc.
• Mitsubishi Heavy Industries, Ltd.
• Air Liquide
• Linde AG
• Air Products & Chemicals, Inc.
• Climeworks
• Total SE
• Global Thermostat
• CO2 Solutions
• Carbon Engineering Ltd.
• Royal Dutch Shell plc

In November 2021, BASF, and Air Liquide win EU funding for carbon-capture project. Firms get slice of $1.2 billion in government grants for 7 large decarbonization efforts. In June 2021, Zeeland Refinery Partners with Air Liquide for Carbon Capture Solution. Air Liquide Engineering & Construction will provide Cryocap FG.

In December 2021, Technip Energies and GE Gas Power awarded feed study for Teesside power, carbon capture and compression project in the U.K. Technip Energies and GE Gas Power will develop ‘first of a kind’ large amine-based post combustion carbon capture at scale solution to integrate with a proposed H-Class natural gas fired power plant at Teesside, England.

The Global Carbon Capture and Storage (CCS) Market is Segmented as Below:

By Capture Type Coverage

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

By Transport Type

• Pipeline
• Ship/Tanker
• Chemical Carrier Vehicle

By Storage Type

• Enhanced Oil Recovery (EOR)
• Dedicated Geological Storage

By Geographical Coverage

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• Latin America