Market Research Report
Carbon Capture, Utilization & Storage Market Forecasts to 2028 - Global Analysis By Service (Capture, Transportation, Storage, Utilization), Technology (Pre-Combustion Capture, Post-Combustion Capture) and By Geography
|Carbon Capture, Utilization & Storage Market Forecasts to 2028 - Global Analysis By Service (Capture, Transportation, Storage, Utilization), Technology (Pre-Combustion Capture, Post-Combustion Capture) and By Geography|
Published: February 1, 2022
Stratistics Market Research Consulting
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According to Stratistics MRC, the Global Carbon Capture, Utilization & Storage Market is accounted for $2.10 billion in 2021 and is expected to reach $11.69 billion by 2028 growing at a CAGR of 27.8% during the forecast period. Carbon capture, utilization, and storage is the process of capturing carbon dioxide from fuel combustion or industrial processes, the transport of this CO2 through ship or pipeline, and either its use as a resource to create valuable products or services or its permanent storage deep underground in geological formations. CCUS technologies also provide the foundation for carbon removal or negative emissions when the CO2 comes from bio-based processes or directly from the atmosphere.
Increasing focus on reducing CO2 emissions
The use of fossil fuels and natural gas to produce electricity is the major source of CO2 emissions worldwide. Carbon capture, utilization, and storage can prevent greenhouse gases from entering the atmosphere. Therefore, growing concerns about climate change are responsible for the increasing carbon capture, utilization, and storage adoption to reduce emissions. To support the adoption of carbon capture, utilization, and storage, governments of various countries are offering numerous advantages to achieve net-zero emissions. Some of the advantages offered by government entities are tax credit and government subsidies benefitting the plant owners.
Large initial investments
The cost of carbon capture and storage, including all the initial expenses and ongoing operational & maintenance expenditures of carbon capture and storage plant, is higher than non-carbon capture and storage using the same fuel and net electricity output. The efficiency penalties caused by energy absorbed in capture processes and the addition of capture-specific equipment are the major cost drivers of the CO2 capture process. Factors such as initial exploration, site assessment, and site preparation are considered to calculate storage costs. Also, there are monitoring costs, which hinder the plant manufacturers from implementing carbon capture, utilization, and storage.
Growing demand for carbondioxide
Carbondioxide (CO2) is widely used in various industries, such as food & beverage, manufacturing, and metal fabrication. Earlier, most of the CO2 used for EOR techniques was recovered from naturally occurring reservoirs. However, new technologies are being developed to produce CO2 from industrial applications, such as ethanol, fertilizer, hydrogen plants, and natural gas processing, where naturally occurring reservoirs are unavailable. EOR techniques include thermal recovery, gas injection, and chemical injection. The use of CO2-EOR techniques helps produce 30-60% or more oil from reservoirs, restore reservoir pressure, reduce viscosity, decrease oil density, and increase the permeability of carbonate formations.
Decreasing crude oil prices
Carbon dioxide is widely used for crude oil extraction. Decreasing crude oil prices are expected to be a major threat for the carbon capture, utilization, and storage market growth during the forecast period.
The energy sector segment is expected to be the largest during the forecast period
Energy sector is the fastest growing industry for carbon capture, utilization, and storage adoption. The industry generates a massive amount of CO2 and hence attracts multiple stakeholders to reduce these emissions. Fossil fuel power plants generate significant amounts of CO2 emissions into the atmosphere, which are the main cause of climate change. Among CO2 mitigation options, carbon capture and storage is considered the only technology that can significantly reduce the emissions of CO2 from fossil fuel combustion sources.
The transportation segment is expected to have the highest CAGR during the forecast period
Transportation involves carrying carbon from capture location to storage area; trucks, ships, and pipelines are the most common modes for this purpose. Pipelines are most preferred as they offer lower costs in the long run. Pipelines also have the least emission in transporting carbon, making it most effective for the cause. For commercial applications, onshore trucks are preferred, while for EOR and storage applications, pipelines are preferred both on and offshore. Pipelines are widely used for the transportation of CO2.
Region with largest share:
North America is projected to hold the largest market share owing to the rising demand from end-use industries in the region. The markets in the regions are expected to register high growth in comparison to other regions owing to the large scale development projects of carbon capture, utilization, and storage. The availability of multiple large-scale CCUS facilities in the U.S. and Canada is also a factor for the regional market growth.
Region with highest CAGR:
Europe is projected to have the highest CAGR due to the rise in number of CCUS projects in Netherlands and the U.K. Increasing applications of CCU in the enhanced oil recovery (EOR) in the oil and gas segment are expected to contribute to the growth of the market. Further, the food and beverages, chemicals, and cement industries are anticipated to be the major application segments that are expected to contribute to the growth of the European market over the forecast period.
Key players in the market
Some of the key players profiled in the Carbon Capture, Utilization & Storage Market include Mitsubishi Heavy Industries Ltd, General Electric, Siemens AG, BASF SE, Schlumberger Limited, Halliburton, ExxonMobil Corporation, Honeywell International Inc, Linde AG, Carbon Cycle Ltd, Joule Unlimited Inc, MBD Energy Ltd, Fluor Corporation, Integrated Carbon, Sequestration Pty. Ltd, Skyonic Corp, AkerSolutions, and Dioxide Materials Inc.
In October 2021: ExxonMobil Corporation signed an expression of interest to capture, transport and store CO2 from its Fife Ethylene Plant. It increased its participation in the Acorn carbon capture project in Scotland to achieve this.
In September 2020: Mitsubishi Shipbuilding Co., Ltd., a part of Mitsubishi Heavy Industries, Ltd. (MHI), worked with Nippon Kaiji Kyokai (Japan) and Kawasaki Kisen Kaisha, Ltd. (Japan) to conduct test operations and measurements for a small-scale ship-based CO2 capture demonstration plant. This technology is being tested to verify the equipment's use as a marine-based CO2 capture system.
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Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.