Carbon Capture, Utilization, and Storage Market - Forecasts from 2024 to 2029

The carbon capture, utilization and storage market was valued at US$1,946.25 million in 2022.

The carbon capture, utilization and storage market is estimated to expand strongly during the forecast period. Carbon capture, utilization, and storage (CCUS) comprise a range of technologies aimed at reducing CO2 emissions. These are especially useful in mitigating the release of CO2 from high-emission sources like power plants, refineries, and various industrial facilities. Furthermore, these technologies also allow for the extraction of pre-existing CO2 from the atmosphere. Factors such as escalating CO2 emissions, along with increased government initiatives and investments, are acting as significant catalysts, propelling the expansion of the carbon capture, utilization, and storage industry.

Rising CO2 emissions bolster the carbon capture, utilization and storage market.

Industries are key contributors to the growing levels of CO2 in the atmosphere, as their operations often involve processes that release significant amounts of this greenhouse gas. The growing environmental concern propels the demand for CCUS technologies as they provide industries with an effective solution to curb their emissions, enabling them to maintain operational efficiency while also adhering to stricter environmental regulations and societal demand for more sustainable practices. According to International Energy Agency, in 2020, global CO2 emissions from energy combustion and industrial procedures were measured at 34.03 gigatonnes (Gt) of CO2. By 2022, this figure had risen to 36.8 Gt CO2, marking an increase of 8.1%.

Government initiatives drive the carbon capture, utilization and storage market.

Government initiatives are playing a pivotal role in bolstering the growth of the carbon capture, utilization, and storage market by implementing supportive policies, providing financial incentives, and promoting research and development to encourage industries to adopt CCUS technologies to reduce greenhouse gas emissions and combat climate change effectively. These initiatives not only enhance the economic viability of CCUS projects but also demonstrate a commitment to sustainable environmental practices. For instance, in November 2022, Niti Aayog initiated a policy framework for Carbon Capture, Utilisation, and Storage (CCUS), in India. Also, in 2022, the Department of Energy unveiled significant new funding including allocation of USD 820 million for large-scale carbon capture pilot projects.

Heavy investments drive carbon capture, utilization, and storage market growth.

Investments in carbon capture, utilization, and storage technologies play a pivotal role in driving the CCUS market growth. Moreover, with financial incentives, subsidies, and government support, companies are getting further motivated to invest in CCUS projects, leading to the deployment of more efficient and cost-effective solutions. For instance, in April 2023, The UK Government declared a £20 billion investment in the advancement of Carbon Capture, Utilisation, and Storage (CCUS) technologies, aligning with its climate change commitments. Also, in March 2023, United Airlines made a notable investment of $5 million in Svante, a company specializing in carbon capture technology. This strategic investment represents the airline's effort to further technology advancements aimed at reducing greenhouse gas emissions.

North America is forecasted to dominate the carbon capture, utilization and storage market.

North America will hold a substantial amount of carbon capture, utilization and storage market due to favorable investments to reduce escalating carbon emissions and the proactive role of the regional governments. Booming industrial activities is further creating an urgent need for robust carbon capture, utilization, and storage (CCUS). According to Energy Information Administration, in 2021, carbon dioxide emissions related to energy usage in the U.S. rose by 6%. Moreover, these emissions continued their upward trajectory in 2022, with an additional increase of approximately 2%. Also, in September 2022, the U.S. Department of Energy unveiled plans to allocate up to $92 million for the design of regional CO2 pipeline networks. bolstering extensive initiatives to develop and implement carbon capture, conversion, and storage.

Renewable energy may restrain market growth.

Technologies such as wind, solar, and hydroelectric power have become more affordable and efficient, and they offer a more immediately sustainable and low-emission energy solution. This, in turn, is intensifying the competitive landscape for energy-related investments. Companies and governments may be more inclined to direct their resources towards these renewable technologies, given their potential for instant carbon reduction and overall sustainability benefits. This shift in investment priorities could significantly impact the inflow of capital into the carbon capture, utilization and storage market. This competition from renewable energy technologies could, therefore, serve as a considerable restraint on the overall market.

Key Developments

• July 2023: Exxon Mobil Corporation acquired Denbury Inc. a seasoned player in the field of Carbon Capture, Utilisation, and Storage (CCUS) solutions. The move is strategically designed to bolster Exxon Mobil's Low Carbon Solutions business and by integrating Denbury's comprehensive carbon capture and sequestration expertise, Exxon Mobil aims to serve a variety of industries that are challenging to decarbonize, thereby significantly enhancing its sustainable business growth.
• March 2023: The European Commission unveiled the Net Zero Industry Act, highlighting Carbon Capture, Utilisation, and Storage (CCUS) as a key technology in achieving net-zero emissions. The Act asserts that expanding the manufacturing capacity of CCUS is crucial to meet the EU's climate objectives. It proposes a European target of achieving an annual CO2 injection capacity of 50 million tonnes by 2030. Oil and gas producers are being called upon to contribute to this effort. The Act also establishes definitive timelines for granting permits for CCUS projects, thus streamlining the process of their deployment.
• December 2022: Chevron New Energies (CNE), a subsidiary of Chevron U.S.A. Inc., in collaboration with Svante, raised $318 million which would be used for expediting the production of Svante's carbon capture and removal technology, a promising step in enhancing the efficiency and reach of carbon mitigation efforts.
• April 2022: Baker Hughes, a leading energy technology firm, acquired Mosaic Materials Inc., a move aimed at enhancing and scaling up its cutting-edge carbon dioxide (CO2) capture technology. This technology targets both CO2 reduction from stationary sources and CO2 removal (CDR) from the atmosphere. A notable feature of the technology is its proprietary metal-organic framework (MOF), characterized by high capacity and high selectivity for CO2 capture, reinforcing Baker Hughes' commitment to innovative carbon reduction solutions.

Company Products

• Just Catch: Aker Carbon Capture offers a product known as Just Catch, which is a standardized, modular carbon capture plant with various capacity options, including 40K, 100K, and 400K tonnes per annum (TPA). Its design enables a swift delivery time of less than 24 months, with the additional benefit of being fully automated, making it a highly efficient solution in the carbon capture technology market.

Segmentation

By Technologies

• CO2 Electrolysis
• Plant-based Carbon Capture
• Others

By Application

• Power Plants
• Refineries
• Industrial Facilities
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• UK
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Australia
• Others