Carbon Capture and Sequestration Market

Carbon Capture and Sequestration Market is anticipated to grow at a CAGR of 19.6% in the forecast period (2024-2034), with the market size valued at USD 4.6 billion in 2023 and projected to reach USD 33.1 billion by 2034.

Product Overview

Carbon Capture and Sequestration Market (CCS) usually consists of comprehensive technological solutions and remedies, which are used in order to mitigate the impact of carbon dioxide emissions on the environment. The CCS process focuses on reducing the CO2 emissions generated by industries, power generation and other sources by capturing them. Combination of technologies such as pre-combustion capture, post-combustion capture and oxy-fuel combustion capture helps in executing the essential carbon capturing process. The CCS market is driven by the government regulations, technological advancements and companies focused on reducing their carbon footprint and greenhouse emissions. CCS technology plays an important role in industries such as power generation, oil and gas, and manufacturing.

Market Highlights

Carbon Capture and Sequestration Markets expected to exhibit a CAGR of 19.6% during the forecast period, 2024-2034

Carbon Capture and Sequestration Markets anticipated to reach USD 33.1 billion, growing at a CAGR of 19.6% during the forecast period owing to the developments in the capturing and storage methods such as Enhanced Oil Recovery and Dedicated Storage & Treatment. The Natural Gas Processing and Power Generation sectors are the ones driving the market growth and expansion. Natural gas industry are the major CO2 producers and hence require advance CCS facilities in order to reduce significant carbon footprint and emission from activities. Power generating coal plants use the CCS technology to capture emissions while generating energy from coal burning.  Technological advancements in the CCS process are vital as in they help in making the process efficient while lowering the costs and significant emissions. These all developments are becoming essential in sustaining the market growth.

Source: Fatpos Global

Carbon Capture and Sequestration Market Segmentation

Natural Gas Processing is forecasted to dominate the industry due to increased oil and gas production

By Capture Source, Carbon Capture and Sequestration Segment is segmented into Natural Gas Processing, Chemicals, Power Generation, Fertilizers Production and Others. Natural Gas Processing Segment comes in as the prominent market leader, as natural gas streams usually have a high concentration of carbon content 2-5%, which is comparatively much higher than power generation and chemical segments, higher concentration require less energy costs to separate Co2. Natural gas processing industry already has a large infrastructure such as pipelines, dehydration units and others, making it more cost effective and easier to operate in order to capture CO2. Increasing pressure from the European Union region, makes the Natural Gas companies to invest heavily in the new carbon capture and sequestration solutions. Compared to other industries, natural gas processing firms always had an upper-hand in the technological development, with several projects using captured CO2 for Enhanced Oil Recovery or storages. 

Dedicated Storage and Treatment segment to witness maximum growth due to high storage capacity

By Storage, Carbon Capture and Sequestration (CCS) market can be segmented into Enhanced Oil Recovery and Dedicated Storage & Treatment. Dedicated Storage & Treatment currently dominates the whole segment due to its efficiency, safety and economic sustainability. Dedicated storage are designed properly which provide a better control minimizing the risk of leaks as compared to other methods. Infrastructure enhancement directly helps in increased injection rates with low operational costs. Robust monitoring system helps the corporation involved in carbon generation activities to effectively carry out their operations without any interruptions. Technological advancements with Enhanced Oil Recovery Projects, supports the segments environmental and economic appeal. Even having intense competition from other storage facilities, the dedicated storage segments advance position makes it a key player in the market.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Increasing Climate Change Concerns with Emission reduction targets will help in market development

Major governments and corporations globally are more focused on reducing the greenhouse emissions, which usually comes from industries like oil & gas, power generation and manufacturing. These type of regulations helps in putting pressure on such industries to adopt technologies like carbon capture and sequestration (CCS).  Major regulators have started to label carbon emissions with price and schemes like cap-and-trade systems, which encourages organisations to reduce emissions. CCS can be used as a cost effective measure, helping in reducing emissions as well as helping in mitigating fines and taxes related to it. Many governments have aimed to achieve zero net emission target, in order to sustain these levels necessary contribution is required from all sectors. CCS stands out as an essential technology for achieving climate and environmental goals.

Technological Advancements will help in overall industrial growth

Organisations are spending a significant amount of their revenues on R&D (Research and Development) in order to develop new CCS technologies, in order to make them more cost efficient and viable. This includes working on new storage techniques and capture materials. Capture productivity is essential in order to reduce energy requirements. Technological development is leading to more efficient capturing process, reducing energy emissions. New capture technologies like direct air capturing are providing better solutions for capturing CO2. These all developments help the overall industry to move away from traditional capturing methods towards more productive ones.

Restraints

High Upfront Costs & Lack of Financial Support may hamper the overall market growth

Carbon Capture and Sequestration projects require significant investments to operate in the market, payback period for such large projects can be longer, discouraging investments from private entities. Small private setups require more investments and sometimes are not able to install such expensive setups. Investors also remain hesitant in CCS due to risks associated with technological uncertainties and long term labilities for stored CO2 and market fluctuations.

Recent Developments

• In 2023, Exxon Mobil collaborated with Occidental petroleum on large scale CCS projects across US. The company also launched their new XCrab platform offering integrated CCS solutions.
• In 2023, Chevron have announced plans for a large-scale CO2 capture and storage project in Australia and are also working on investing $10 billion in CCS technologies by 2030.
• In 2023, Total Energies acquired CCS assets from CCS pioneer Air Liquide and also developed new OLGA technology for capturing CO2 from industrial chimneys.
• In 2023, Royal Dutch Shell completed their Quest CCS project in Canada one of the world’s first commercial projects. The company also partnered with Equinor and Aker solutions on CCS technology development
• In 2023, BP announced plans for a large scale CCS project at its Humber refinery in the UK. While investing in next generation capture technologies such as direct air capture.

Carbon Capture and Sequestration Market

Key Players:

• ExxonMobil
• Chevron
• Total Energies
• Royal Dutch Shell
• Equinor
• BP
• Siemens Energy
• Mitsubishi Heavy Industries
• Schlumberger
• Aker Solutions
• Carbon Clean Solutions
• Climeworks
• Cemex
• Carbon Engineering
• Suncor Energy
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Carbon Capture and Sequestration Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. The North American region dominated the carbon capture and sequestration market, holding larger share compared to other regions. North America was an earlier pioneer in the CCS development, with large scale projects. The early adoption gave the region a prominent head start in the industry. The governments in US and Canada provided significant financial assistance and created necessary policies to encourage the development of CCS. US and Canada generally have stringent regulations regarding emissions from the Industries which in turn increases demand for CCS based technology. While Europe has provided a strong commitment towards the reducing carbon emissions, its CCS market is currently smaller, but developments from countries like Germany, UK and Netherlands is directly influencing the industry.

Source: Fatpos Global

Impact of Covid-19 on Carbon Capture and Sequestration Market

Covid-19 pandemic had a multifaceted impact on the carbon capture and sequestration market. The pandemic triggered a global economic downturn, leading to reduced investments and participation in energy projects. Lockdowns and travel restrictions nearly disrupted the supply chain for delivery of essential components required for the development of CCS facilities. This increased overall costs for the industry. The governments had to shift their commitments from CCS development to more important tasks such as medical packages and assistance. Despite the pandemic the climate change concerns were the major priority, which helped in keeping the CCS policies alive. Technological advancements further helped in driving down the total costs of CCS technologies, even if pandemic slowed down the total growth of the industry/

Carbon Capture and Sequestration Market further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Carbon Capture and Sequestration Market Scope and Segments:

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