Carbon Capture, Utilization, and Storage Market

The global carbon Capture, Utilization, and Storage market size is projected to grow from USD 3.1 Billion in 2022 to USD 12.9 Billion by 2030, at a CAGR of 24.0% during the forecast period. The demand from the construction industry is expected to drive the growth of the market during the forecast period between 2024 to 2030. However, factory shutdowns, interrupted supply chains, and reduced demand from end-use industries has negatively affected the carbon capture, utilization, and storage market.

Carbon Capture Utilization and Storage Market Size, Dynamics & Ecosystem

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Carbon Capture, Utilization, and Storage Market Dynamics

Driver: Growing Focus On Reducing Co2 Emissions

Carbon capture, utilization, and storage technology is deployed to capture CO2 from various sources and transport it to the areas where it can be utilized or stored. Dependence over fossil fuels for the energy needs is the major source for carbon emission into the atmosphere. The CCUS technology can reduce the greenhouse gas emission into the atmosphere from the industrial sources. The growing concern over climate change globally, has factored the adoption of CCUS in a positive way. For an inssstance, US government had issued an executive order to achieve generation of 100% carbon-free electricity by 2030.

Inorder to achieve net zero emission targets, the governments across the globe is actively encouraging ht ecompanies to reduce the carbon footprints and implement CCUS technology by providing them tax benefits.

Restraint: High cost of carbon capture and storage to restrict the market growth

The CCUS technology requires hughe capital investment and is also costlier to effectively operate and maintain. This has developed a sense of hesitation from the industries, whether to invest in the technology or not. The implementation also takes a toll on the process efficiency of the plants, as mostl of the plants are not designed with implementation of such capture technologies. The cost involved in the carbon capture and storage involves the entire value chain: capture of the carbon at the source, transportation, storage or utilization of the carbon at end-use applications areas. This does not generate enough revenue to recover the investments made. For instance, the cost of deploying the CO2 scrubber for post-combustion and an air-separation unit for oxy-fuel technology increases the initial CAPEX and additional operation & maintenance costs. The storage areas for carbon storage also involves huge CAPEX for initial exploration, site assessment, site preparation. Additionally, the cost to monitor for leakage of CO2 has to be incurred by the companies to store the captured carbon. These heavy inertia of investment is restraining the companies from adopting CCUS technology.

Opportunity: Continuous investments in developing innovative capturing technologies to create lucrative opportunities for the market

Continuous development of carbon capture technologies is important to maintain the cost-effectiveness of power generation and industrial plants. Growing investment in R&D and demonstration activities are being conducted to develop next-gen CO2 capture technologies. These technologies address three main issues: reducing the impact of CO2 capture on power generation capacity, improving the cost-effectiveness of CO2 capture technologies, and scaling up novel carbon capture technologies to the required level for full-scale development at power plants. These technologies have the potential to provide reductions in energy costs in comparison to traditional technologies.

Various technology providers are investing heavily and working on reducing carbon-capturing costs and pulling down the capturing cost to less than USD 30 for a million tons of CO2. This inclination toward the development of advanced technological solutions will create an immense opportunity to increase the current implementation of carbon capture, utilization, and storage globally.

Challenge: Reducing carbon capturing cost to be a major challenge for market growth

As of now, the companies implementing CCUS technology are generating their revenue only in the form of tax benefits that the governments provide to encourage more companies to adopt CCUS technology. There is currently very less chances of generating revenue from this technology. Carbon capture is the process where the technology implementation incurs huge operational and maintenance costs. This significantly increases the effective cossst for capturing the carbon from the emission sources. The currently available capture technology is not efficient enough to reduce the effective carbon capture costs. The investments in product innovation and technological advancements becomes inevitable to achieve higher efficiency in capturing the carbon. Although this will increase the carbon capture prices slightly for a short period of time, the effective cost for capture will decrease over the period. the companies are constantly evaluating the chances to develop newer technology to make the carbon capture process efficient and reduce the effective cost. This is a major challenge that exists in the CCUS technology implementation in the long term.

Pre-combustion to be dominant technology in capture service of the carbon capture, utilization, and storage market, in terms of value and volume

Pre-combustion capture entails reacting a fuel with oxygen or air to produce synthesis gas (syngas) or fuel gas composed of carbon monoxide and hydrogen. The carbon monoxide reacts with steam in a catalytic reactor called a shift converter to provide CO2 and more hydrogen. Then, CO2 is separated by a physical or chemical absorption process and results in hydrogen-rich fuel that can be used in many applications, including boilers, engines, furnaces, gas turbines, and fuel cells.

This technology involves eliminating CO2 from a gas stream before its dilution with air or oxygen during the combustion process. The gas stream containing CO2 will also have carbon monoxide, hydrogen, and methane, which have significant value as chemical precursors or fuels. The main challenge in pre-combustion capture is that any reduction in syngas temperature to enable low-temperature physical solvent-based capture reduces the overall power generation cycle efficiency. Current operational CCS projects that use the pre-combustion technology for carbon capture include Val Verde Natural Gas Plants (US), Petrobras LulaOil Field (Brazil), PetroChina Jilin Oil Field (China), and Great Plains Synfuel Plant (Canada).

Oxy-Fuel accounted for the third-largest market share, in terms of value and volume

In oxy-fuel combustion technique, oxygen is used for combustion instead of air, which results in higher combustion rates. This will effectively produce the flue gas stream that is majorly constituted by CO2 and H2O, which can be later processed again to remove the CO2 from the flue gas mixture before final emission into the atmosphere. Since, the fuel is combusted with high amounts of pure oxygen at high temperatures, the requirement for pure oxygen is high. This is generated from using the low-temperature air separator, which separates the oxygen from the captured CO2 and H2O from the effluent stream. The capture of CO2 from the flue stream is achieved through post-combustion capture technique. Though this system is effective than traditional post-combustion process, the implementation is capital intensive and operationally complex. However, the efficiency of oxy-fuel combustion can be improved by lowering the cost of oxygen supplied to the system and increasing the overall system efficiency.

There are oxy-fuel combustion technologies currently supported by the Department of Energy, including pressurized fluidized bed with CO2 purification, supercritical CO2 heat exchanger, staged coal combustion, isothermal deoxidation reactor (IDR), simultaneous recovery of latent heat and removal of SOx and NOx from flue gas in pressurized oxy-fuel combustion, and assessing impacts to boiler operation using computational fluid dynamics simulations with oxygen and minimum recycled flue gas.

Majority of CO2 extracted from natural gas plants in Oil & gas end-use industry segment of carbon capture, utilization, and storage market, in terms of value and volume

Carbon capture and storage is an innovative technology capable of achieving considerable reductions in CO2 emissions to minimize the environmental impact of industrial processes worldwide. The use of carbon capture, utilization, and storage in oil & gas processing is one of the major drivers of the market. In 2023, the majority of CO2 was extracted from natural gas processing plants. As per the EIA, natural gas generation will grow at approximately 2.7% per year between 2012 and 2040, accounting for nearly 30% of worldwide energy generation by 2040. The deployment of carbon capture, utilization, and storage in this sector will help create a viable pathway for a sustainable environment.

Various operational projects across the globe are running with carbon capture, utilization, and storage systems. Some of these projects are Century Plant (US), Shute Creek Gas Processing Plant (US), Uthmaniyah Gas Plant (Saudi Arabia), Petrobras Santos Basin Plant (Brazil), Snohvit Field (Norway), Gorgon Carbon Capture, Utilization, and Storage Project (Australia), and Sleipner Gas Field (Norway).

Carbon Capture Utilization and Storage Market Segmentation & Geographical Spread

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North America to continue dominating the carbon capture, utilization, and storage market

North America is the largest market for CCUS technology. The technology is pioneered by the companies and institutional organizstions present in the US. The companies have long experience in implementing  the CCUS technology for more than 35 years. This has led to development a superior capture and storage technology in the country. The country’s regulations and policies are also framed in a way to encourage the industrial players to adopt the technology by providing them with technology support and tax benefits. The region has several oil & gas projects that is implemented with or retrofitted with the CCUS technology, leading the global CCUS technology adoption by several folds. Growing awareness among the people regarding climate change and change in mindset to use green energy sources to reduce carbon footprints also has lead to the deployment of the CCUS in a large scale.

Key Market Players

Some of the key players in the global carbon capture, utilization, and storage market are such as Royal Dutch Shell (Netherlands), Fluor Corporation (US), Mitsubishi Heavy Industries, Ltd. (Japan), Exxon Mobil Corporation (US), and Linde Plc (UK), JGC Holdings (Japan), Schlumberger Ltd (US), Aker Solutions (Norway), Honeywell International (US), Equinor ASA (Norway).

These companies are involved in adopting various inorganic and organic strategies to increase their foothold in the carbon capture, utilization, and storage industry. The study includes an in-depth competitive analysis of these key players in the carbon capture, utilization, and storage market, with their company profiles, recent developments, and key market strategies.

Read More: Carbon Capture, Utilization, and Storage Companies

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Scope of the Report

The study categorizes the Carbon capture, utilization and storage market based on Type, Form, Application, End-Use Industry, and Region.

By Service

• Capture
• Transportation
• Utilization
• Storage

By Technology

• Chemical Looping
• Solvents & Sorbents
• Membranes
• Others

By End-Use Industry

• Oil & Gas
• Power Generation
• Chemicals & Petrochemicals
• Cement
• Iron & Steel
• Others

By Region:

• North America
• Asia Pacific
• Europe
• South America
• Middle East & Africa

Recent Developments

• In July 2023, Fluor Corporation revealed its memorandum of understanding (MOU) with Carbfix, the pioneer in carbon dioxide (CO2) mineral storage, to explore comprehensive carbon capture and storage (CCS) solutions.
• In June 2023, TotalEnergies SE, Petronas and Mitsui & Co. Ltd., have signed a development agreement to collaborate on a carbon capture and storage (CCS) project in Malaysia.
• In June 2023, Aker Solutions signed an agreement with Doosan Babcock to jointly deliver carbon capture and storage (CCS) projects in the UK.
• In April 2023, Fluor Corporation (NYSE: FLR) recently signed a license agreement with Federated Co-Operatives Limited (FCL) to implement Fluor’s Econamine FG PlusSM carbon capture technology at Saskatchewan, Canada.
• In November 2022, ExxonMobil and MHI have formed a carbon capture technology alliance to facilitate industry decarbonization projects.

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