Oxyfuel combustion technology is a more advanced way of burning fuels that uses pure oxygen (O2) instead of air during combustion. In classical combustion, air contains around 78% nitrogen, and the combustion products include nitrogen oxides (NOx) and other pollutants. Using oxygen-enriched air or pure oxygen in oxyfuel burning produces a flue gas of carbon dioxide (CO2) and water vapor.
The growing concern about carbon dioxide emissions in the atmosphere boosts the oxy-fuel combustion technology market share. Anthropogenic CO2, or CO2 created by human activity, is derived from the combustion of fossil fuels in power plants, transportation, and industry. Fossil fuels currently provide most of the world's energy and are projected to continue for at least the next few decades. To continue using fossil fuels efficiently and environmentally friendly, near-zero emission technologies are being developed for demonstration and large-scale commercial deployment.
Stringent Environment Regulation
Many countries have imposed severe emission restrictions for power plants in response to air pollution and climate change concerns. Oxyfuel combustion technology assists power plants in meeting these regulations by lowering nitrogen oxide (NOx) generation and allowing for more effective carbon capture. The Industrial Emissions Directive in the European Union establishes emission limits for pollutants from ample combustion facilities, thereby encouraging the use of technologies such as oxyfuel combustion.
Furthermore, implementing carbon pricing mechanisms, such as carbon taxes or cap-and-trade systems, encourages industries to decrease their carbon footprint. With the possibility of carbon capture, oxyfuel combustion becomes an appealing choice for businesses seeking to control their carbon obligations. On August 1, 2023, 74 carbon pricing schemes were operating worldwide. Carbon taxes or emissions trading schemes (ETS) are two possible strategies. The World Bank's Carbon Pricing Dashboard highlights the global momentum in implementing carbon pricing policies, which create economic incentives for adopting low-carbon technologies.
Additionally, several regions have established renewable energy portfolio standards, requiring a particular percentage of electricity generation from renewable sources. California's Renewables Portfolio Standard (RPS) was established in 2002, and by 2030, renewable energy must account for 60% of the state's electrical supply. The program increases the state's load-serving organizations' need for renewable energy from RPS-certified facilities. Oxyfuel combustion can be combined with renewable energy technologies to increase power generation sustainability. As the world's attention on environmental sustainability grows, the oxyfuel combustion technology market trend is poised to contribute to a lower-carbon future.
High Cost
The most significant capital investment in implementing oxyfuel combustion technology is the installation of oxygen separation machines, which are required to create an oxygen-enriched environment for combustion. The expenditures connected with designing, developing, and building these devices can be significant. The oxyfuel combustion technique is costly and energy-intensive, raising the price of electricity generated by oxyfuel plants from USD 66.8 to USD 123.7 per MWh.
Additionally, retrofitting existing industrial facilities to support oxyfuel combustion can be costly. This could include changes to combustion systems, flue gas handling infrastructure, and the installation of carbon capture equipment. The Petra Nova project in Texas, USA, is one of the world's most significant post-combustion carbon capture and storage sites. Completed in 2017, the project involved retrofitting an existing coal-fired power plant with oxyfuel combustion technology and a carbon capture system. The project's entire cost topped USD1 billion, which included considerable investments in equipment, infrastructure, and technology development. In addition to the initial capital investment, continuous operational and maintenance costs are involved with maintaining oxygen separation units, carbon capture facilities, and other components of the oxyfuel combustion system. Thunder Said Energy says oxyfuel combustion costs between 6 and 8 cents per kilowatt hour.
Using hydrogen in oxyfuel combustion provides a chance to utilize a clean fuel with low carbon emissions. Hydrogen can be created through electrolysis with renewable electricity, giving a green solution to reduce carbon intensity in combustion processes. The European Commission considers hydrogen an essential component of its clean energy program. As of 2022, the European Clean Hydrogen Alliance had approximately 750 projects in the works, 172 of which used hydrogen in industry. The European Commission's Hydrogen Accelerator plan intends to produce 10 million metric tons of hydrogen annually by 2030. The plan also envisages importing the same amount by 2030, which is anticipated to meet future market demands.
Similarly, oxyfuel combustion can be paired with renewable natural gas (RNG) derived from organic waste or biomass. This integration improves the environmental benefits of oxyfuel combustion using a renewable, low-carbon fuel source. A wastewater treatment plant may use oxyfuel combustion using RNG created during treatment. The combustion of RNG in an oxygen-rich environment decreases emissions and promotes a circular economy. According to research from organizations such as the International Renewable Energy Agency (IRENA), integrating renewable energy into industrial processes, particularly combustion technologies, is critical for establishing sustainable and low-carbon energy systems.
| Study Period | 2020-2032 | CAGR | 9.2% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD XX Billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD XX Billion |
| Largest Market | North America | Fastest Growing Market | Asia-Pacific |
The global oxyfuel combustion technology market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.
North America is the most significant global oxyfuel combustion technology market shareholder and is estimated to grow at a CAGR of 9.3% over the forecast period. North America dominates the oxyfuel combustion technology market, bolstered by tight government regulations to maintain environmental air quality. Several environmental agencies and government organizations, including the Environmental Protection Agency (EPA) and the United States Energy Information Administration (EIA), have developed laws governing greenhouse gas emissions in the region. This has prompted the players to implement cleaner air solutions in their operations, pushing up demand for oxyfuel combustion technology.
However, the current energy capacity needs to be improved to meet total energy demand, forcing a significant portion of the region to rely on traditional power facilities. Fossil fuels continue to account for 63% of U.S. electricity. On May 8, 2023, the United States Environmental Protection Agency (EPA) proposed a rule to control greenhouse gas (GHG) emissions from fossil fuel-fired power facilities. On May 11, 2023, the EPA announced new carbon emission rules for coal and gas-fired power facilities. The EPA argues that new requirements will protect public health, eliminate dangerous pollutants, and provide up to $85 billion in climate and public health benefits over the next two decades.
Asia-Pacific is anticipated to exhibit a CAGR of 9.6% over the forecast period. Asia-Pacific provides significant growth prospects for participants in the oxyfuel combustion technology market owing to the region's growing urbanization and industrialization. Rising population and living standards have increased the region's energy demand, increasing investment in power facilities. Given the favorable government regulations and availability of resources, several industries have relocated their production facilities to the region, increasing CO2 emissions. To address rising customer demand, the corporations have expanded their production facilities into new countries like China and India.
Additionally, companies use oxyfuel combustion technology because it increases productivity and has a high flame temperature and heat transfer ratio. Following the COVID-19 outbreak in China, numerous corporations are moving their production facilities to newer markets. In May 2020, the Indian government provided approximately 461,589 hectares of land to entice enterprises to relocate from China. In addition, Linde collaborated with Indian Oil Corporation Limited (IOCL), India's largest refiner, to deploy oxyfuel combustion technology. Furthermore, Japan has vowed to reduce greenhouse gas emissions by 46% by 2030 and become carbon neutral by 2050.
The European market for oxyfuel combustion technology is divided into France, Germany, Russia, Italy, the United Kingdom, and the Rest of Europe. Western European countries are more advanced than Nordic and other Eastern European nations. As a result, there have been significant breakthroughs and advancements in adopting new technology in Western Europe. On the other hand, economically strong countries such as Germany, Italy, and the United Kingdom have seen a significant increase in the deployment of oxyfuel combustion technology. Although renewable energy is gaining popularity, fossil fuels are projected to play an essential role in Europe in the near and medium term. CO2 emissions from burning fossil fuels in electricity generation make for around 30% of total CO2 emissions in the European Union (EU).
Furthermore, process sectors such as cement, iron and steel, aluminum, pulp and paper, and refineries emit CO2 from raw material conversion. Carbon capture and storage (CCS) technologies aim to absorb up to 90% of CO2 emissions from power plants and heavy industries before moving them by pipeline or ship and storing them safely at least 800 meters below the earth's surface.
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The market is further segmented by offering into Solutions and Services.
Solution accounts for the largest share of the market.
Solution
Solutions include a variety of components and technologies that enable effective combustion in oxygen-rich environments, improve carbon capture, and interact with current industrial infrastructure. This provides oxygen separation units, combustion systems, carbon capture and storage (CCS) technologies, and control and monitoring systems. Oxyfuel combustion solutions seek to meet the issues of high-temperature combustion, emission reduction, and the extraction of concentrated CO2 for storage or use. These integrated solutions help to achieve the broader aims of environmental sustainability and the transition to low-carbon industrial processes.
Service
Services extend beyond the provision of physical equipment to include continuing help, expertise, and maintenance to assure the best performance and lifetime of oxyfuel combustion systems. System installation and commissioning, operating personnel training, regular maintenance inspections, and troubleshooting help are all possible services. Additionally, suppliers may give consultancy services to assist industries in determining the feasibility of oxyfuel combustion, navigating regulatory hurdles, and optimizing the technology's integration into existing operations. The service segment is critical to the effective deployment and long-term operation of oxyfuel combustion solutions, as it provides industries with the expertise and assistance they need to move to cleaner and more sustainable combustion methods.
The market can be further bifurcated by end-users into Oil and Gas, Power Generation, GlassManufacturing, Industrial, Metals, and Mining.
GlassManufacturing
The Glass manufacturing segment has the largest market share. Glass is a recyclable and sustainable material widely used to produce industrial goods, such as dinnerware, flat Glass, LCDs, computers, and windows for the automobile and construction industries.
Oxyfuel combustion technology is used in Glass manufacturing operations such as glass melting furnaces. Oxyfuel technology can produce higher temperatures and greater heating efficiency by using oxygen-enriched air in combustion. However, glass manufacturing is a significant source of greenhouse gas (GHG) and carbon dioxide (CO2) emissions. According to the International Energy Agency (IEA), the Glass manufacturing industry emits more than 60 megatons of CO2. The expanding population and rapid growth in the infrastructure sector are the primary drivers of glass demand.
Oil and Gas
Oxyfuel combustion can be employed in various processes within this industry, including industrial burners, heaters, and boilers for oil refining and petrochemical manufacture. These facilities use oxygen-enriched combustion to improve combustion efficiency, reduce emissions, and permit carbon capture for environmental sustainability. Oxyfuel combustion technology enables the oil and gas industry to optimize energy-intensive processes while contributing to emissions reduction measures.
December 2023- Air Liquide planned to develop a world-scale CO? collection facility to help decarbonize Rotterdam's industrial area.
January 2024- Hitachi announced the completion of an absorption-type split agreement to enhance the energy and facility management service business through a company split.
January 2024- GE Vernova and IHI announced the next step of their technology roadmap, which aims to produce a gas turbine combustion system capable of using 100% ammonia by 2030.
