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South Africa 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 Country (U.S., Canada) Forecasts, 2026-2034

Last Updated: September 01, 2026 | Author: Ismail Sutaria | Format:

South Africa Carbon Capture and Storage Market Size

The south africa carbon capture and storage market size was valued at USD 356 million in 2025 and is projected to grow from USD 397.30 million in 2026 to  USD 955.93 million by 2034 at a CAGR of 11.6% during the forecast period 2026-2034.

South Africa's national and international climate commitments, involvement in CCS research, and pilot projects (such as the Sasol facility) are helping pave the way for broader adoption.

South Africa Carbon Capture and Storage Market  Size

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Segmentation Analysis

By Technolgy

Pre-combustion capture dominates the technology segment and is expected to grow at a CAGR of 14.7% over the forecast period. Pre-combustion capture is essential for South Africa's energy and industrial sectors, especially as coal remains the dominant energy source. This technology captures CO₂ before the combustion process during synthetic fuels and electricity production. As Sasol continues to explore gasification technologies in its Secunda facility, pre-combustion capture can be implemented to mitigate emissions. The increased natural gas usage and the future potential for blue hydrogen will further drive the demand for this technology.

South Africa Carbon Capture and Storage Market  Size By Segments

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By Services

Capture services dominate the segment and are expected to grow at a CAGR of 14.6% during the forecast period. Capture services are seeing increased demand due to South Africa’s industrial sectors like steel, cement, and petrochemicals, which produce large amounts of CO₂. Implementing CCS technologies through service providers offers industries a cost-effective option for reducing emissions without requiring extensive internal infrastructure investment. Companies like Sasol and Exxaro will likely be in charge of adopting third-party capture services to meet regulatory and sustainability goals.

By Utilization Technology

Catalytic conversion dominates the utilization technology and is expected to grow at a CAGR of 15.4% over the forecast period. Catalytic conversion is gaining traction in South Africa, as it offers a promising way to recycle captured CO₂ into valuable products like methanol and synthetic fuels. South Africa's industrial base, especially in chemicals and petrochemicals, is well-suited to benefit from this technology. By converting CO₂ into valuable products, South African companies can reduce emissions and generate economic value, making it an attractive option for industries such as Sasol and PetroSA.

By End Users

Power generation dominates the end-user segment and is expected to grow at a CAGR of 15.7% during the forecast period. Power generation remains the largest end-user for CCS in South Africa. The country’s energy infrastructure relies heavily on coal-fired power plants, which emit substantial CO₂. As part of its Energy Transition Strategy, South Africa is exploring CCS to retrofit its coal plants, starting with the Kusile Power Plant and the Medupi Power Plant. These plants and other future renewable energy projects are likely to integrate CCS technologies to lower emissions and help meet the country’s climate goals.

South Africa Carbon Capture and Storage Market  Share By Segments

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Regional Insights

The market is characterized by growing interest in decarbonization and the integration of CCS with both existing and future energy infrastructure. As one of Africa's largest economies, South Africa is increasingly focused on reducing emissions in line with global climate change mitigation goals and the Paris Agreement. The country has committed to achieving net-zero emissions by 2050, with CCS technologies are critical in decarbonizing its heavy industrial and energy sectors.

Johannesburg is central to the nation’s industrial activities, particularly mining and manufacturing. These industries contribute significantly to CO₂ emissions, driving demand for CCS solutions. Companies like Anglo-American and ArcelorMittal have initiated discussions on implementing CCS technologies. Johannesburg’s well-developed industrial base ensures continuous opportunities for CCS deployment, as the city is committed to decarbonizing its economy.

Cape Town is a critical player in South Africa's renewable energy sector, with a growing focus on solar and wind energy. The city is exploring the integration of CCS with renewable energy infrastructure to balance the grid and reduce emissions. As part of the country’s renewable energy strategy, Cape Town will likely see increasing investments in hybrid CCS-renewable projects, particularly in the solar-rich regions.

Durban is an important industrial city with significant port and shipping activities. It is also home to major oil refineries and chemical plants, making it an ideal location for capturing CO₂ emissions. Sasol’s operations in Durban are among the leading examples of carbon capture efforts, and as the city continues to develop its green economy, CCS adoption is expected to rise.

Pretoria is known for its research institutions, such as the Council for Scientific and Industrial Research (CSIR), which are pivotal in advancing CCS technology in South Africa. The city’s focus on clean energy innovation and its proximity to governmental decision-making make it a key player in policy and technology development for CCS, further enhancing its growth prospects.

Port Elizabeth’s industrial activities contribute heavily to carbon emissions. The city's automotive sector, including companies like Volkswagen and General Motors, is a significant source of emissions, leading to an increased interest in CCS technology for mitigating the environmental impact. The city's focus on cleaner technologies will drive the adoption of CCS services.

List of Key and Emerging Players in South Africa Carbon Capture and Storage Market

Aker Solutions
Air Liquide
Baker Hughes
Dakota Gasification Company
Exxon Mobil Corporation
Fluor Corporation
General Electric

Key Industry Developments

April 2026
South Africa introduced its Use of Proceeds Sustainable Finance Framework, explicitly identifying carbon capture, utilization and storage projects as eligible activities for sustainable financing. The framework supports investment in CO₂ capture at industrial and power-generation facilities, transportation infrastructure, permanent geological storage and direct-air-capture projects.
January 2026
Researchers published a detailed assessment of carbon capture and storage initiatives across South Africa’s Eastern Cape, identifying potential sequestration applications involving forests, agricultural land, rangelands, coastal ecosystems and rehabilitated natural areas. The study supports regional CCS project planning and the development of localized carbon-storage portfolios.
December 2025
South Africa’s National Treasury published its carbon-market policy framework, recognizing carbon capture and storage as an eligible carbon-removal and sequestration activity. The framework noted that verified removal-based credits, including those generated through geological CO₂ storage, may attract higher market value than conventional emissions-avoidance credits.

Report Scope

Segmentation

By Technology 3
  • Pre-combustion Capture
  • Oxy-fuel Combustion Capture
  • Post-combustion Capture
By End-User Industry 4
  • Oil and Gas
  • Coal and Biomass Power Plant
  • Iron and Steel
  • Chemical
Competitive Coverage Aker Solutions · Air Liquide · Baker Hughes · Dakota Gasification Company · Exxon Mobil Corporation
Research Deliverables Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends

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Frequently Asked Questions (FAQs)

The south africa carbon capture and storage market is valued at USD 397.30 million in 2026.

Integration with Renewable Energy Transition is a great opportunity in the market during the forecast period.

Capture services dominate the segment and are expected to grow at a CAGR of 14.6% during the forecast period. Capture services are seeing increased demand due to South Africa’s industrial sectors like steel, cement, and petrochemicals, which produce large amounts of CO₂.

National and international climate commitments are the key drivers for the growth of the market.
About the Author
Ismail Sutaria
Ismail Sutaria
Research Head

Ismail Sutaria is a market intelligence and strategy professional with over 12 years of experience advising organizations across the chemicals, packaging, industrial machinery, and energy & power sectors. He specializes in delivering data-driven market assessments, commercial due diligence, industry benchmarking, demand forecasting, competitive strategy, and growth advisory that enable businesses to make confident investment and expansion decisions in complex industrial markets.

His expertise spans specialty and commodity chemicals, advanced and sustainable packaging solutions, industrial automation, manufacturing equipment, process engineering, renewable energy, conventional power generation, electrical infrastructure, and industrial technologies. Ismail has developed deep domain knowledge in evaluating market ecosystems, technology evolution, regulatory frameworks, supply-demand dynamics, pricing trends, value chain structures, and competitive landscapes across global and regional markets.

Report Details
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