Carbon Capture and Storage (CCS) Market Size, Share, and COVID-19 Impact Analysis, By Capture Source (Chemicals, Natural Gas Processing, Power Generation, Fertilizers Production, and Others), By End-Use (Enhanced Oil Recovery {EOR} and Dedicated Storage & Treatment), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Analysis and Forecast 2024-2031

Market Perspective

The global Carbon Capture and Storage (CCS) Market size was valued at USD 2,383.1 million in 2023 and is expected to grow by USD 6,471.4 million in 2031 at a CAGR of 13.5%.

The rising rate of industrialization, combined with increased investment in manufacturing facilities, is driving the CCS industry. Throughout the projection period, various government measures to reduce greenhouse gas emissions in different industries will also promote the market demand. Furthermore, when the machine is in operation, the better oilfield recovery plans emit carbon dioxide. The market for carbon capture and storage is being driven by the need to store the released carbon dioxide.

Furthermore, rising energy demands, combined with massive investment in the upstream and downstream sectors, will boost the market picture for carbon capture and storage. Furthermore, substantial worry among management and society about rising CO2 emissions and rising energy demands, which finally drive the carbon capture and storage market share.   

COVID-19 ANALYSIS  

The COVID-19 pandemic has emerged as the most major health threat, halting virtually all activities across industries. The coronavirus outbreak has hindered nearly all economies, and many countries have been placed under lockdown. While this issue is likely to be quickly rectified, climate change requires long-term planning and significant action.

The biggest difficulty that industry experts face is the demand for significant capital expenditures (CAPEX) to establish new carbon capture plants. Furthermore, the dramatic reduction in global crude oil prices has hurt prospects for increasing hydrocarbon output using CO2-based EOR. Nonetheless, the stability of the market will be bolstered by several administrations' financial stimulus measures to stimulate economic regeneration, as well as a bright outlook for industrial decarbonization. 

LATEST TREND   

Rising Utilization of Carbon Dioxide in Enhanced Oil Recovery (EOR)

Carbon dioxide is stored in deep onshore geological formations using CCS technologies developed in the oil and gas industry for better oil recovery. One of the most important driving factors affecting the growth of the worldwide carbon capture and storage (CCS) market in the future years is increased demand from the oil and gas sector, particularly in the domain of Enhanced Oil Recovery (EOR). In the oil industry, carbon dioxide is widely utilized for enhanced oil recovery (EOR) from older oilfields.

When carbon dioxide is injected into an oilfield, it can react with the crude oil, causing it to swell and lose viscosity, so assisting in maintaining or raising reservoir pressure. More crude oil can flow to the producing wells thanks to the combination of these procedures.     

DRIVING FACTORS    

Strict Government Norms toward GHG Emissions

Various countries have implemented tight action plans to slow climate change and reduce overall carbon emissions in the short and long term. Stern activities to monitor and reduce greenhouse gas (GHG) emissions from power plants are expected to add to the market's size. As a result, the International Energy Agency (IEA) reported in February 2020 that worldwide energy-related CO2 emissions grew to 33.3 gigatonnes (Gt) in 2019 from 32.2 Gt in 2015, representing an increase of over 3.4 percent in just five years. 

Furthermore, the growing number of fully commercialized CCS projects will drive strong demand for novel solutions in the global market. The iron and steel industries are another key application sector for solutions in the worldwide carbon capture and storage (CCS) industry. These businesses emit a significant amount of carbon dioxide and are among the most difficult to decarbonize.    

RESTRAINTS

Huge Implementation Costs Hamper Market Growth

The high capital required to setting up large-scale carbon capture and sequestration technologies may stifle the market's expansion. In order to run systems at optimal levels, the projects also require significant annual operational expenses. Furthermore, the feasibility of high-capacity plants capable of capturing multiple MTPA of CO2 restricts technological adoption across countries.  

SEGMENTATION  

The Global Carbon Capture and Storage Market is segmented by Capture Source, End-Use, and Region. Based on the Capture Source, the market is categorized into Chemicals, Natural Gas Processing, Power Generation, Fertilizers Production, and Others. Based on End-Use, the market is categorized into Enhanced Oil Recovery {EOR} and Dedicated Storage & Treatment. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa.         

REGIONAL INSIGHTS

North America is projected to dominate the carbon capture and storage market due to the large investments in research and development and the availability of many high-capacity CO2 capture and sequestration plants. The regional expansion has also been aided by regional government funding initiatives. The US Department of Energy (DoE), for example, announced in June 2021 that it will invest USD 12 million in six R&D efforts promoting direct air capture (DAC) technology in order to create new devices for efficiently collecting CO2 from the atmosphere.

Europe is expected to second largest market for carbon capture and storage due to the growing use of carbon capture and storage (CCS) products and solutions in Europe for a variety of commercial applications, including natural gas processing, ethanol production, coal-fired power generation, fertilizer production, coal gasification, and refinery hydrogen production, to name a few.

Furthermore, the emergence of 11 new commercial projects, in addition to the existing 13 commercial projects that are currently operational, that are expected to begin operations before 2030, are providing excellent growth opportunities for players in the global carbon capture and storage market in Europe in the coming years.       

Key Industry Players

Many small and big product and service suppliers serve carbon capture and storage technologies, according to the industry. To highlight the competitive environment, a number of corporations have expressed an interest in entering into cooperative agreements. Chevron is focusing more on establishing additional CCS stations and forming relationships with other key parties to strengthen its presence at various phases of operations. 

LIST OF KEY COMPANIES PROFILED:  

• Fluor (U.S.)
• Exxon Mobil Corporation. (U.S.)
• Carbon Engineering Ltd. (Canada)
• Abu Dhabi National Oil Company (UAE)
• Equinor ASA (Norway)
• China National Petroleum Corporation (China)
• Dakota Gasification Company (U.S.)
• Shell (Netherlands)
• BP p.l.c. (U.K.)
• Chevron Corporation. (U.S.)
• Linde plc (Ireland) 

KEY INDUSTRY DEVELOPMENTS:

July 2021- Shell announced its plans to build a large-scale carbon capture and storage (CCS) complex in Alberta, Canada. Over the course of its lifetime, the plant is expected to capture 300 million tonnes of CO2 from its chemical and refinery operations.

June 2021- Carbon engineering announced that they will collaborate to develop and engineer the first large-scale direct air capture (DAC) facility in the United Kingdom, with a capacity of 0.5 to 1 MTPA.   

SEGMENTATION

By Capture Source

• Chemicals
• Natural Gas Processing
• Power Generation
• Fertilizers Production
• Others

By End-Use

• Enhanced Oil Recovery {EOR}
• Dedicated Storage & Treatment

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy, Spain, Rest of Europe
• Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
• South America- Brazil, Argentina, Colombia, Rest of South America 
• The Middle East and Africa- GCC, South Africa, Rest of the Middle East & Africa