Carbon Capture And Storage Market Size, Share & Trends Analysis Report By Technology (Pre-combustion Capture, Oxy-fuel Combustion Capture, Post-combustion Capture), By End-User Industry (Oil and Gas, Coal and Biomass Power Plant, Iron and Steel, Chemical) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global carbon capture and storage market size was worth a revenue share of USD 2.98 billion in 2022. It is predicted to reach USD 5.26 billion by 2031, expanding at a CAGR of 6.5% during the forecast period (2022-2031). Factors like the expanding preference for the CO2 injection method for enhanced oil recovery and the increasing visibility of bioenergy carbon capture and storage stimulate market growth.

The process known as carbon capture and storage, or CCS for short, is one approach to lowering carbon emissions, which may be essential in mitigating the effects of global warming. It is a three-step process that captures the carbon dioxide produced by energy production or industrial processes, including producing steel or cement, transferring it, and storing it underground. CCS captures carbon dioxide (CO2) emissions from industrial activities, such as manufacturing steel and cement or burning fossil fuels to create electricity. After being manufactured, this carbon is moved there by ship or pipeline and kept underground in geological formations.

CCS is currently the only technology that can assist in lowering emissions from significant industrial facilities. It might be a crucial technology in the fight against climate change. The main factors propelling the global market are the growing demand for CO2 injection methods for enhanced oil recovery (EOR) and stringent government regulations regarding GHG emissions. The carbon capture and storage market's growth are anticipated to be significantly hampered by high CCS technology implementation costs and rising shale investment levels.

Market Dynamics

Market Drivers

The Expanding Preference for the CO2 Injection Method for Enhanced Oil Recovery (EOR).

CCS involves removing CO2 from big-point emitters, including factories or power plants that use fossil fuels or biomass for fuel. The oil and gas sector can frequently utilize CO2 captured by selling it to industrial facilities or injecting it into the subsurface to enhance oil recovery. An established enhanced oil recovery (EOR) method is the injection of CO2 into active oil fields. CO2 raises the reservoir's total pressure, which forces the oil into production wells. In CO2-EOR, some of the injected CO2 remains underground. Permanent CO2 storage is possible if the CO2 that rises to the surface is separated and pumped back into the system to create a closed loop.

Globally, CO2-EOR is expected to be able to recover between 190 and 430 billion barrels of oil. After years of subpar advancement and low investment, interest in CCS is starting to increase. In recent years, more than 30 commercial projects have been announced. CCS has gained enormous traction, with plans for over 100 additional sites during 2021, thanks to enhanced climate goals and increased investment incentives. Being one of the few choices for reducing heavy industry emissions and extracting carbon from the environment, CCS technology will be essential in achieving net zero ambitions. Using CO2 injection for enhanced oil recovery (EOR) can significantly increase oil production to meet the world's rising energy needs while safely storing CO2 in established oil fields to lower atmospheric CO2 emissions. These elements benefit the global market worldwide.

Market Restraints

Increased Shale Investment

The emergence of shale oil and gas is among the most critical developments in the energy sector with long-term effects. While the United States has been engaged in shale production for many years, recent research and discoveries in other parts of the world have changed the world's energy landscape. Market trends support the argument that shale companies should increase investment. Concerns over energy security that had been dormant for a while were rekindled by the recent significant increase in gas and electricity costs in Europe and the rise in gasoline prices in the US last fall. This has a detrimental effect on the market for carbon capture and storage.

The Chinese government is subsidizing costs and relaxing regulations for shale gas drilling in the nation to promote the sector's growth. The Chinese province of Guizhou put up six shale gas exploration blocks in a government auction, with sizes ranging from 56.8 to 159.2 square kilometers. Sinopec announced in April 2021 that China's most extensive shale gas development has seen a 20% year-over-year rise in production. The increase followed Sinopec's announcement that it had turned 28 more wells into operational ones this year. Therefore, the growth of shale gas can counteract the global increase in investment and exploration activities for technologies like carbon capture and storage (CCS) and new hydrogen projects.

Market Opportunities

The Increasing Visibility of Bioenergy Carbon Capture and Storage (BECCS)

The geoengineering technique known as BECCS, which stands for bioenergy with carbon capture and storage, replaces fossil fuel energy while also removing carbon dioxide from the atmosphere. BECCS has been suggested to prevent carbon emissions from going over target. A division of the CCS technology company is called BECCS. Since the beginning of time, people have produced heat using bioenergy. Bioethanol fuels automobiles and biomass is burned to produce electricity. BECCS comprises both using biomass as a fuel source and capturing and storing the CO2 released when biomass is turned into energy.

There are currently five plants using BECCS technology worldwide. Each year, these facilities capture about 1.5 million tons of CO2. BECCS technology has a lot of potentials. The greatest (in regards to energy production) and most lucrative BECCS application is bioethanol production with CCS. Technology has already been created. One of the significant BECCS applications is waste-to-energy (WtE). This creates opportunities for the carbon capture and storage market to grow.

Regional Analysis

The regional segmentation of the global carbon capture and storage market includes Asia-Pacific, North America, Europe, and the Rest of the world.

North America and Europe will most certainly possess the most significant shares.

North America will likely command the global market, expanding at a CAGR of 6.6%. The North American CCS market is projected to flourish with the expanding demand for clean technologies and the rising use of CO2 in EOR procedures. According to the Global CCS Institute, in 2020, 24 CO2 capture and injection plants were in operation worldwide, with 12 of them in the United States.

Among the sectors where CO2 is caught and injected in the US are those that produce chemicals, hydrogen, fertilizers, natural gas processing, and electricity. With the intention of either storing CO2 underground in geologic formations or using it to increase oil output from depleted oil fields, these facilities capture and inject CO2. This procedure is known as enhanced oil recovery (EOR).

Europe is most likely to advance at a CAGR of 6.1% by 2031. The region's federal government declared that it will mandate a 55% decrease in greenhouse gas emissions by 2030 and a net zero reduction by 2045. The Federal Government has approved money for the "CO2-Vermeidung und -Nutzung in Grundstoffindustrien" program, which deals with the use and avoidance of CO2 in primary industries, as part of its Climate Action Programme 2030.

The industry's employment of carbon capture & storage technology, as well as the more quick and more thorough creation of CCUS production chains, are supported by this program. Germany is also the biggest producer of cement and steel in all of Europe. The nation's businesses are increasingly requesting government assistance for the infrastructure expansion necessary for capturing carbon dioxide to be exported and stored in the North Sea. Unions are aware of the crucial role CCS plays in achieving a just transition and the possibility that it may become a must for competing in a market where low-carbon goods are in high demand.

Segmental Analysis

The global carbon capture and storage market is based on technology, end-user industry, and region.

Per the technology, the sections are Pre-combustion Capture, Oxy-fuel Combustion Capture, and Post-combustion Capture.

The pre-combustion section is projected to have the largest revenue share during the forecast period. A gaseous fuel known as "synthesis gas (syngas)" is created during the gasification and reforming processes, mainly consisting of hydrogen (H2), carbon monoxide, and CO2. Pre-combustion capture separates carbon dioxide (CO2) from these processes. In this, fuel is transformed into a mixture of hydrogen and carbon dioxide from solid, liquid, or gaseous forms. The primary fuel is processed in pre-combustion systems in a reactor with steam, air, or oxygen to produce a mixture primarily of carbon monoxide and hydrogen (syngas).

For the separation of H2 and CO2, pre-combustion research and development activities are being concentrated on enhanced solvents, solid sorbents, and membrane systems, focusing on high-temperature/novel materials, process intensification, and nanomaterials in particular. Novel ideas are also being researched, such as hybrid technologies that blend the characteristics of many technologies.

The second-largest share is expected to be held by post-combustion capture. Carbon dioxide is separated from the flue gases produced when the primary fuel burns in the presence of air by post-combustion devices. These systems typically employ a liquid solvent to absorb the minimal amount of carbon dioxide in flue gas streams, where nitrogen predominates. By absorbing it in an appropriate solvent, carbon dioxide can be removed from the combustion output. The term for this is post-combustion capture. The solvent releases the absorbed carbon dioxide, which is then compressed for storage and transportation.

Per the end-user industry, the sections are Oil & Gas, Coal & Biomass Power Plant, Iron & Steel, and Chemical.

The oil & gas section is estimated to hold the largest revenue share, growing at a CAGR of 5.47%. Carbon capture & storage, or CCS, is used by the oil and gas sector to lessen the number of greenhouse gases discharged into the atmosphere. The oil and gas sector has developed CCS methods for enhanced oil recovery, which store carbon dioxide in deep, onshore, or offshore geological formations. Under particular circumstances, these technologies are economically viable for saline formations and oil and gas fields. In the oil business, carbon dioxide is frequently utilized for enhanced oil recovery (EOR) from established oilfields. The market for carbon capture and storage expands as a result.

The coal & biomass power plant section will hold the second-largest share. One of the significant sources of carbon dioxide is the production of electricity using coal. Most of the time, coal used for power production is burned in pulverized fuel boilers, producing an atmospheric pressure flue gas stream of up to 14% by volume of carbon dioxide. One of the CCP technologies, the new and possibly more efficient Integrated Gasification Combined Cycle (IGCC) technology, has been created for producing electricity from coal, heavy fuel oil, and carbonaceous leftovers. Because plants that use biomass as a primary or supplemental fuel may be able to claim credit for the carbon taken from the atmosphere during the biomass growing cycle, the requirement to reduce net carbon dioxide emissions could result in higher usage of biomass fuel.

Impact of covid-19

Recent Developments

• In 2022, Aker Solutions and Siemens Energy will provide the grid connection infrastructure for the Norfolk Boreas Offshore Wind Farm. This covers the design, development, procurement, construction, and installation (EPCI) of the onshore substation, offshore platform, and National Grid link.
• In 2022, Aker Solutions, Schlumberger, and Subsea 7 have got into a joint venture to bring about a step change in the economics of subsea production by assisting customers in unlocking reserves, speeding up the time to first oil, and lowering development costs while also achieving their decarbonization goals.