Market Research Report
Carbon Capture and Storage
|Published by||Global Industry Analysts, Inc.||Product code||273600|
|Published||Content info||368 Pages
Delivery time: 1-2 business days
|Carbon Capture and Storage|
|Published: September 1, 2020||Content info: 368 Pages||
Even as Environment Projects Derail, COVID-19 Sets the Alarm Bells Ringing
As the COVID-19 pandemic pushes the global economy into a steep recession, staying on course with CAPEX intensive environmental goals is besieged with challenges. Emission intensive industries like energy, chemicals and industrial processing are worst affected by the pandemic and the economic recession and it is in these industries that CO2 capture and storage has huge potential. With companies in the energy and manufacturing sector witnessing sizable drop in revenues and cash flows, energy efficiency, emission control and environmental projects are taking a direct hit. Tight cash flow conditions have resulted in the collapse of planned financing options. Against this backdrop, the global Carbon Capture and Storage (CCS) market is expected to slump in the year 2020 posting a -9.7% erosion in growth. By the year 2027, the market will reach a projected US$4.5 billion trailing a CAGR of 7.7%. The virus led recession is compromising global investments in clean energy and weakening industry environmental goals to reduce emissions. The magnitude of the impact is illustrated in the number of job losses in the clean tech industry in the United States. Over 18.2% of the clean tech industry`s workforce was retrenched in the first quarter of 2020 in the country. This however is expected to severely cripple long-term climate change goals and will be especially damaging for countries which have had early bird advantage in clean technologies. COVID-19 however is a warning against the effects of climate change and can likely be the first wave of a pandemic in a series of pandemics with bigger outbreaks likely to follow. Microbial behavior can be influenced by changing temperatures. Positive and negative microbial feedback responses to temperature is still not completely understood and there is a high risk of climate change impacting health and affecting the spread of infectious diseases.
Climate Change Can Become a Crisis More Severe than the COVID-19Outbreak
The pandemic interestingly has reinforced the importance of resilience and long-term planning. The unprecedented string of events of the last couple of months has highlighted the importance of tackling environmental and climate change issues before they blow out-of-proportions. Building climate-resilient infrastructure is crucial for humanity`s future. The economic inertia witnessed as part of the cataclysmic impact of the pandemic has reduced pollution significantly by clearing the skies of air traffic, halting polluting factories, and keeping billions confined to their homes. Over 2. 5 billion metric tons of carbon dioxide emissions which otherwise would have been emitted in the 1st quarter of 2020 has been prevented. The strategies used to curb the spread of the virus are not permanent and cannot remain in place for long. Concentration of CO2 in the atmosphere will increase again as countries begin reopening their economies. The pandemic has brought an overnight change in behavior and priories of governments, companies and people. The pandemic is a lesson learn in crisis management. Without intervention or with delayed intervention, the climate change will worsen in the next 20 years and as surface temperatures rise, it can create environmental and health crisis much worse than the COVID-19 outbreak.
Intensified Focus on the Environment will be Among the Pandemic-Induced Behavioral Changes
Governments, corporations and citizens worldwide will need to prioritize climate goals to be able to battle the next climate crisis in a meaningful way. Companies will need to adhere to their green goals and commitments and nations will need to draw up more ambitious climate plans and agreements. This is putting the clean tech industry in a paradoxical scenario where cutting down on clean tech programs could have devastating consequences in the long- term, while current financial scenario makes planned projects difficult to implement. All hopes are now pinned on government support and funding. Stimulus packages for clean technologies will therefore play a key role in keeping the industry afloat. As countries gradually ease lockdowns and restrictions, rebuilding in the post COVID-19 period will need to have a clear focus on climate change. The global market for CCS, under this scenario, is forecast to make to quick recovery in the coming years and will derive a major chunk of growth momentum from technology advancements that will lower capital equipment costs and capture operating costs; and expansion of applications of captured CO2 in Enhanced Oil Recovery (EOR), urea production, enhanced coal bed methane, algae fixation, mineralization, enhanced geothermal systems and others.
Competitors identified in this market include, among others,