Asia-Pacific Carbon Capture and Storage Market Size & Outlook, 2024-`

Asia-Pacific Carbon Capture and Storage Market Size

The Asia-Pacific carbon capture and storage (CCS) market was valued at USD 941.28 million in 2023 and is projected to reach from USD 1,167.27 million in 2024 to USD 4,046.54 million by 2032, growing at a CAGR of 16.8% during the forecast period (2024–2032).

The market is driven by rapid industrialization, urbanization, and commitments to decarbonization; the region is adopting CCS technologies to mitigate emissions across sectors such as energy, oil and gas, and manufacturing. Additionally, advanced CCS solutions and government policies supporting sustainable growth are creating lucrative opportunities for regional and global market players.

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Growth Factors

Rising Carbon Emissions and Policy Frameworks

Asia-Pacific is the largest emitter of CO₂ globally, contributing approximately 50% of global emissions in 2023, as the International Energy Agency (IEA) reported. This has spurred governments and organizations across the region to adopt CCS technologies as a critical tool to achieve net-zero targets. In China, the government’s 14th Five-Year Plan emphasizes CCUS (Carbon Capture, Utilization, and Storage) to reduce emissions by 10 million tons annually by 2030. Similarly, India’s National Hydrogen Mission promotes using CCS in hydrogen production, driving significant investments in infrastructure. Policy initiatives like Australia’s Emissions Reduction Fund (ERF) further accelerate the deployment of CCS projects.

Restraining Factors

High Costs and Limited Infrastructure

The high costs of CCS technologies and limited infrastructure are significant barriers to market growth. According to the Asian Development Bank (ADB), a typical CCS project in Asia-Pacific requires investments ranging from USD 200–500 million, making it unfeasible for smaller enterprises. Additionally, the lack of an integrated CO₂ transport and storage network in countries like Indonesia and Vietnam slows the scalability of CCS solutions. Without substantial financial support and coordinated regional efforts, the adoption of CCS technologies remains confined to a few large-scale projects in wealthier economies like Japan and Australia.

Market Opportunities

Advancements in Catalytic Conversion Technologies

Catalytic conversion, projected to grow at a CAGR of 17.3%, offers transformative opportunities for the Asia-Pacific CCS market. This technology converts captured CO₂ into valuable products like biofuels, chemicals, and construction materials, making CCS economically viable. Companies like Mitsubishi Heavy Industries lead innovation with pilot projects across Japan and Southeast Asia. For instance, Mitsubishi’s Osaki CoolGen Project integrates CCS with catalytic conversion to produce clean energy and construction-grade materials. With increasing investments in R&D and public-private partnerships, catalytic conversion technologies are expected to play a pivotal role in scaling CCS deployment across diverse sectors.

Regional Insights

The market is characterized by diverse applications of CCS across energy-intensive industries, robust government support, and regional collaborations aimed at decarbonizing economies. Countries in the Asia-Pacific region are rapidly adopting CCS technologies, leveraging geological storage capacities and industrial advancements to meet net-zero goals.

China leads the region in CCS deployment, with significant projects like Sinopec's Qilu Petrochemical CCS initiative, which captures 1 million tonnes of CO2 annually. The country’s focus on integrating CCS with coal-fired power plants and industrial facilities underscores its commitment to reducing its carbon footprint.

Australia is a critical player in CCS, with initiatives like the Gorgon CO2 Injection Project in Western Australia. It is one of the world’s most significant CCS projects, operated by Chevron, capable of storing up to 4 million tonnes of CO2 annually, primarily from LNG production.

Japan’s emphasis on CCS is evident through partnerships such as JERA’s work on integrating CCS into power generation. The Tomakomai CCS Demonstration Project in Hokkaido has captured over 300,000 tonnes of CO2, advancing offshore storage technologies.

South Korea’s Ulsan Carbon Neutrality Hub exemplifies its CCS focus. Collaborations between Hyundai Oilbank and Shell aim to capture and store up to 400,000 tonnes of CO2 annually, emphasizing industrial applications.

India is exploring CCS to mitigate emissions from its coal-dependent energy sector. NTPC’s pilot project in Gujarat captures CO2 from flue gas for utilization in fertilizer production, showcasing potential synergies between CCS and other industries.

Segmentation Analysis

By Technology

Pre-combustion capture dominates the technology segment and is expected to grow at a CAGR of % over the forecast period. This technology is particularly effective in power plants and hydrogen production. China leads the adoption of pre-combustion technologies, exemplified by the Yanchang Petroleum CCS Project, which captures 400,000 tons of CO₂ annually from coal-to-chemicals facilities.

By Service

Capture services dominate the segment and are expected to grow at a CAGR of % during the forecast period. The capture segment benefits from innovations in amine-based solvents and membrane technologies. These advancements improve capture efficiency and reduce costs, enabling retrofitting existing industrial plants. Australia’s Gorgon CCS Project, one of the largest in the world, captures 4 million tons of CO₂ annually using advanced capture techniques.

By Utilization Technology

Catalytic conversion dominates the utilization technology and is expected to grow at a CAGR of % over the forecast period. Catalytic conversion is gaining traction as a sustainable solution for CO₂ utilization. This technology’s ability to create valuable products aligns with Asia-Pacific’s focus on circular economies. India’s Carbon Clean Solutions has developed modular catalytic systems that reduce deployment costs and enable scalability.

By End User

Oil and gas dominates the end-user segment and is expected to grow at a CAGR of % during the forecast period. The oil and gas sector dominates the region's adoption of CCS. Companies like PetroChina and Woodside Energy are integrating CCS into operations to meet decarbonization goals. Projects such as Australia’s Moomba CCS Facility showcase the sector’s commitment to reducing emissions while maintaining output.

List of key players in Asia-Pacific Carbon Capture and Storage Market

1. Aker Solutions 
2. Air Liquide
3. Baker Hughes
4. Dakota Gasification Company 
5. Exxon Mobil Corporation
6. Fluor Corporation 
7. General Electric

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Analyst’s Perspective

As per our analyst, the Asia-Pacific carbon capture and storage market is poised for rapid expansion in the coming years. This growth is primarily driven by the region’s ambitious decarbonization goals, rapid industrialization, and government support for CCS technologies. China and Australia are expected to lead the market due to their large-scale projects and investments while emerging economies like India and South Korea offer significant untapped potential. Advancements in catalytic conversion and pre-combustion capture will further accelerate adoption, providing economic incentives for industries to integrate CCS into operations. Addressing cost and infrastructure challenges will be vital to unlocking the full potential of the Asia-Pacific CCS market.