Carbon Capture and Storage Market

Carbon Capture And Storage Market Estimated To Witness High Growth Owing To Increasing Investments From Government And Private Sector

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The carbon capture and storage market is estimated to be valued at US$ 1.95 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Carbon capture and storage (CCS) technology involves capturing carbon dioxide from large point sources like fossil fuel power plants, transforming it into a non-gaseous form, and storing it so that it will not enter the atmosphere. This technology is useful in transitioning to a carbon-neutral economy and helps reduce greenhouse gas emissions from fossil fuel combustion. CCS finds applications in enhanced oil recovery and utilization to extract more oil from aging oilfields.

Market Dynamics:
The growth of the carbon capture and storage market is attributed to increasing investments from governments and private sectors to support CCS projects. For instance, Fossil Forward, launched by the US Department of Energy in 2021, aims to provide $3.5 billion for second-generation CCS technologies. Similarly, the International CCS Knowledge Centre launched the $1.4 billion Shand CCS facility in Canada. Moreover, countries like China, India, UK, and Norway among others have announced plans to build large-scale CCS projects to curb their carbon emissions. However, high capital cost remains a challenge for widespread adoption of carbon capture technology. Additionally, lack of clearly defined regulations for transport and storage of captured carbon dioxide also restrains the market growth.

SWOT Analysis
Strength: The Global Carbon Capture And Storage Market has witnessed strong government incentives and policies encouraging its development. CCS provides an opportunity to mitigate environmental risks associated with greenhouse gas emissions. Technological advancements allow more efficient capture, transportation and storage of carbon dioxide.
Weakness: High capital cost associated with carbon capture and storage projects poses significant challenges. Public acceptance and safety concerns regarding long term storage of carbon dioxide underground remains an issue. Dependence on favorable regulatory framework and lack of assured revenues post demonstration phase increases investment risks.
Opportunity: Growing need to reduce emissions from coal and gas-fired power plants and industrial facilities creates scope for wider adoption of CCS solutions. By lowering emissions, CCS helps industries achieve sustainability targets and improves compliance with climate change regulations.
Threats: Low cost of alternative clean energy technologies reduces competitiveness of CCS. Stringent performance standards and uncertainties around long term carbon storage regulations pose compliance challenges. Delays and cost overruns in large demonstration projects erode investor confidence.

Key Takeaways
The global carbon capture and storage market is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing stringent environmental regulations worldwide limiting greenhouse gas emissions. Countries like United States, Canada, China and several European nations have implemented policies incentivizing adoption of emission reduction technologies like CCS across power and industrial sectors.

Regional analysis North America dominates the global carbon capture and storage market, owing to supportive federal and state level policies in the US and Canada. The region holds over 60% share of total operational CCS facilities globally. However, Asia Pacific is expected to witness highest growth over the coming years led by China’s commitment to become carbon neutral by 2060 and growing focus on CCUS deployment across coal power and steel industries.

Key players operating in the carbon capture and storage market includes Honeywell International Inc., Aker Solutions, Dakota Gasification Company, Exxon Mobil Corporation, Baker Hughes, Air Liquide, Exxon Mobil, Air Liquide, Aker Solutions, Baker Hughes, Fluor Corporation, General Electric and Halliburton. Major players are investing in setting up large scale demonstration projects and partnering with government agencies and national oil companies to facilitate commercial deployment of CCUS technologies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it