The global carbon capture and storage market is expected to register a CAGR of more than 9% during the forecast period. The major factor driving the market studied are emerging demand for CO2 injection technique for enhanced oil recovery (EOR), and strict government norms towards GHG emissions.
- Huge CCS technologies implementation cost, and growth in shale investments are expected to hinder the growth of the market studied.
- Augmenting prominence for bioenergy carbon capture and storage (BECCS) is likely to act as an opportunity in the future.
Key Market Trends
Oil and Gas Segment to Dominate the Market
- Carbon Capture and Storage (CCS), is aiding the oil and gas industry to mitigate greenhouse gases out of the atmosphere. Carbon dioxide stored in deep, onshore, or offshore geological formations uses CCS technologies for enhanced oil recovery that have been developed in the oil and gas industry.
- In other circumstances, the carbon dioxide is not soluble in the oil. Here, injection of carbon dioxide raises the pressure in the reservoir, helping to sweep the oil toward the production well. In Texas (US), for more than three decades carbon dioxide has been used in enhanced oil recovery projects, EOR constitutes over 20% of total oil production, and some fields achieve recoveries of nearly 70%.
- Kyoto Clean Development Mechanism is mostly applied among the OPEC Nations, which support CCS technology. For instance, Abu Dhabi National Oil Company achieved dramatic reductions in gas flaring, from about 1,500 million cubic feet per day in the early 1980s to less than 200 million cubic feet per day today. This decreased air pollution and augmented gas availability for export or internal use.
North America to Dominate the Market
- The North American region dominated the global market. With the growing demand for clean technology, accompanied by the growing use of CO2 in EOR practices, is likely to drive the CCS market in the countries like United States, Canada.
- The United States uses 75% of the global carbon capture capacity in EOR operations, which accounts for nearly 30 Metric ton per annum.
- The country introduced the FUTURE Act (Furthering Capital Carbon Capture, Utilization, Technology, Underground storage, and Reduced Emissions) under 45Q section, to provide incentives for capturing carbon dioxide produced from industrial and power sources to be used in EOR.
- With the development of shale gas techniques and less interest in the carbon capturing by the new government, it is expected that the market for CCS is likely to grow at a moderate rate in the country. Thereby increasing the market share of North America.
A majority of the large-scale projects for the Carbon Capture And Storage are either set up or being established in the United States and China. Furthermore, newer technologies and storage techniques are expected to be deployed in European countries. The Major Players for the Carbon Capture And Storage Market are Occidental Petroleum Corporation, Exxon Mobil Corporation, Dakota Gasification Company, NRG Energy, Inc, and Air Liquide, among others.
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