United States Carbon Capture and Storage Market Size, Share & Trends Analysis Report By Technology (Pre-combustion capture, Oxy-fuel combustion capture, Post-combustion capture), By Service (Capture, Transportation, Storage, Utilization), By Utilization Technology (Uptake, Catalytic conversion, Mineralization), By End-User (Power Generation, Oil and Gas, Metal Production, Others) and Forecasts, 2024-2032

United States Carbon Capture and Storage Market Size

The United States carbon capture and storage (CCS) market, valued at USD 1,668.20 million in 2023, is projected to reach from USD 1,980.43 million in 2024 to USD 4,842.56 million by 2032, growing at a CAGR of 11.8% during the forecast period (2024-2032).

The market’s growth is fueled by advancements in CCS technologies, supportive government policies, and increased private sector investment in decarbonization initiatives. The market aligns with national sustainability goals, aiming to reduce emissions across hard-to-abate sectors.

Growth Factors

Federal policies and decarbonization goals

The U.S. has implemented robust policies to incentivize CCS adoption, such as the 45Q tax credit, which offers up to USD 85 per ton of CO₂ captured. Legislative frameworks under the Inflation Reduction Act (2022) and the Bipartisan Infrastructure Law (2021) allocate billions toward CCS project development. The Department of Energy (DOE) has also committed USD 2.3 billion for direct air capture hubs, targeting emission-intensive industries.

As a result, major players like ExxonMobil and Chevron have launched large-scale projects, including the Houston CCS Hub, which aims to capture 100 million tons of CO₂ annually by 2030. The United States’ commitment to achieving net-zero emissions by 2050 positions CCS as a cornerstone of its climate strategy.

Restraining Factors

High costs and infrastructure limitations

Despite supportive policies, high capital and operational costs hinder widespread CCS adoption. Setting up CCS facilities involves significant investment in CO₂ capture technology, pipeline infrastructure, and storage systems. For example, the Petra Nova project in Texas, which cost over USD 1 billion, was temporarily suspended due to operational costs exceeding revenue.

Moreover, the current CO₂ pipeline network in the U.S. cannot support the expected surge in captured carbon. A report by the Global CCS Institute states that the country requires an additional 65,000 miles of CO₂ pipelines to achieve its net-zero targets, representing a substantial financial and logistical challenge for project developers.

Key Opportunities

Technological innovations and industry partnerships

Technological advancements, particularly in catalytic conversion, present transformative opportunities. This technology, growing at a CAGR of 12.2%, enables CO₂ utilization in producing synthetic fuels, chemicals, and construction materials. Partnerships between leading corporations and research institutions are accelerating innovation.

• For instance, Occidental Petroleum has partnered with Carbon Engineering to develop the largest direct air capture facility to remove 1 million tons of CO₂ annually.

Additionally, integrating AI and IoT technologies enhances CCS efficiency by optimizing capture processes and monitoring storage sites. As industries increasingly adopt renewable energy sources, CCS technologies are vital for achieving sustainable operations, offering lucrative opportunities across sectors like oil and gas, cement, and steel.

Regional Insights

The market is characterized by strong federal incentives like the 45Q tax credit, regional partnerships, and advancements in CCS technology tailored to the energy and industrial sectors. Several cities are leading the way in deploying CCS solutions through collaborations between government, academia, and private industry.

Houston, known as the "Energy Capital of the World," hosts large-scale CCS projects like ExxonMobil’s Houston CCS Hub. This initiative aims to capture up to 100 million tonnes of CO2 annually by 2040, supporting emissions-intensive industries along the Gulf Coast.

Decatur is home to the Illinois Industrial Carbon Capture and Storage project, operated by Archer Daniels Midland (ADM). This bioenergy-focused initiative has sequestered over 1 million tonnes of CO2, showcasing the potential for CCS in agricultural processing.

Los Angeles integrates CCS with renewable energy strategies. The Los Angeles Department of Water and Power’s initiative at the Intermountain Power Plant incorporates CCS into hydrogen energy production, targeting decarbonization of the city’s energy supply.

Casper is central to CCS research due to its proximity to rich geological formations suitable for CO2 storage. The Integrated Test Center at Dry Fork Station supports pilot CCS technologies, fostering innovation in carbon capture methods.

New Orleans is critical in projects like Air Products’ Gulf Coast CCS system, which captures CO2 from hydrogen production facilities for enhanced oil recovery (EOR). This project captures over 5 million tonnes of CO2 annually.

Segmentation Analysis

By Technology

Pre-combustion capture dominates the technology segment and is expected to grow at a CAGR of 11.5% over the forecast period. Pre-combustion capture dominates due to its application in industries like hydrogen production and power generation. Advanced gasification plants in the U.S., such as those operated by Southern Company, leverage this technology to separate CO₂ during fuel conversion, reducing emissions efficiently.

By Services

Capture services dominate the segment and are expected to grow at a CAGR of 11.4% during the forecast period. Capture services, including consulting, design, and maintenance, are pivotal as industries prioritize tailored CCS solutions. Companies like Aker Carbon Capture have expanded their service offerings to meet the growing demand in sectors like petrochemicals and refining.

By Utilization technology

Catalytic conversion dominates the utilization technology and is expected to grow at a CAGR of 12.2% over the forecast period. Catalytic conversion is revolutionizing the market by turning CO₂ into valuable byproducts like methanol and concrete. Innovations by Blue Planet Systems in CO₂-to-concrete technologies are gaining traction in the construction sector, highlighting its transformative potential.

By End users

Oil and gas dominate the end-user segment and is expected to grow at a CAGR of 11.3% during the forecast period. The oil and gas sector has led to the adoption of CCS, which uses technologies for enhanced oil recovery (EOR) and emission mitigation. Chevron’s CCS projects in California exemplify the industry's commitment to decarbonization while maintaining energy output.

Analyst Perspective

As per our analyst, the United States carbon capture and storage market is poised for rapid expansion in the coming years. Federal incentives, advancements in catalytic conversion technologies, and increasing private-sector investments primarily drive this growth. The U.S. is leveraging CCS to decarbonize hard-to-abate sectors such as oil and gas, steel, and cement, aligning with its 2050 net-zero targets.

Additionally, innovative partnerships and infrastructure development initiatives ensure scalability, while technological breakthroughs enhance efficiency. The confluence of policy support and market innovation positions the United States as a global leader in CCS, offering immense opportunities for sustainable growth.