Market Research Report
Global Carbon Capture and Storage Market - 2019-2026
|Published by||DataM Intelligence||Product code||913733|
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|Global Carbon Capture and Storage Market - 2019-2026|
|Published: January 1, 2020||Content info:||
Carbon capture and storage (CCS) is a technology that can recover carbon dioxide (CO2) produced form the use of fossil fuels in power generation, liquefied natural gas (LNG) production, and other industrial processes. They are used to store the captured CO2 underground, thus shutting out contact with the atmosphere. Carbon dioxide is transported to storage facilities by ship, road tankers, or by pipeline. The global carbon capture and storage market valued USD XX billion in 2018 and is estimated to reach USD XX billion by 2026, at a CAGR of XX% during the forecast period.
The rising energy demand across the globe owing to urbanization and industrialization led to increase in utilization of fossil fuels such as natural gas, petrochemicals and coal. The abundant use of these fuels in turn resulted in generation of large volume of carbon dioxide and other greenhouse gases that pose significant adverse effect on environment. The growing environmental concerns such as global warming and greenhouse effect is driving the need for effective control of carbon dioxide globally, thus boosting the growth of carbon capture and storage market. According to International Energy Agency (IEA), over 50% of the global CO2 emissions is produced by power and heat generation activities. Transport and manufacturing sector also account for major share in CO2 emissions.
The efforts laid by several organizations such as Carbon Capture and Storage Association (CCSA), Global CCS Institute, and Intergovernmental Panel on Climate Change (IPCC) towards reduction of carbon emissions has increased the carbon capture and storage practices across the globe. However, the high implementation costs and operational complexities associated with transportation and storage of CO2 is hindering the growth of the market. The growing prominence of Bioenergy with carbon capture and storage (BECCS) as the effective solution for decarburization of high emission industries such as power generation and metal industry is likely to provide growth potential to the market in near future
The global carbon capture and Storage market has been segmented by storage technology into enhanced hydrocarbon recovery (EOR), deep ocean storage, and geological storage. EOR evolved as the lucrative segment of carbon capture and storage market owing to the economic and environmental benefits of this technology. The use of captured carbon in hydrocarbon recovery enables extraction of 30% to 60% more of the original oil or gas being extracted from the reservoir, thus providing economic value. Furthermore, offsets the cost of CO2 storage. By end use, power generation is dominating the global carbon capture and storage market owing to large volume of CO2 emissions in electricity generation. For instance, the study conducted by Durham University stated that the utilization of CCS captured CO2 for EOR could result in an increase of over 150 billion pounds of oil from existing oil fields in the North Sea
By Geography, North America is the leading market for carbon capture and storage practice owing to the well-established power generation and other industrial processes that emit large volume of CO2 and presence of large number of CO2 capturing projects under operation in the U.S. According to International Energy Agency (IEA), North America accounted for over 70% of global carbon captured for use or storage in 2017
The global carbon capture and storage market is consolidated with limited number of global players that are capable of capturing and storing 30 million tons of CO2 per year in 2018. The notable players in the market include Mitsubishi Heavy Industries, Ltd., Royal Dutch Shell, Exxon Mobil Corporation, Hitachi, Ltd., General Electric Company, and Siemens AG. These companies are significantly investing in development of new capturing technologies to improve the efficiency and affordability of CCS practices.
Exxon Mobil is leading the market with a capacity of capturing nearly 7 million tons of CO2 per year. In 2016, the company has partnered with FuelCell Energy, Inc., a U.S. based company involved in production, operation, and service of direct fuel cell power plants. The partnership helped Exxon Mobil increase its foothold in the global CCS market.