CCUS Absorption Market

CCUS Absorption Market

The global CCUS absorption market is valued at USD 0.4 billion in 2024 and is projected to reach USD 1.7 billion by 2030, growing at 26.5% cagr from 2024 to 2030. The beneficial properties of CCUS absorption make them suitable for various end-use industries, growing demand for reducing carbon footprint from industrial sources and advanced electronic goods to drive the consumption of CCUS absorption.

Carbon Capture Utilization and Storage (CCUS) absorption refers to the process of capturing carbon dioxide (CO2) from industrial processes and converting it into valuable products or storing it in geological formations. This technology involves the deployment of chemical and physical absorption techniques to capture CO2 from various sources, including power generation, industrial facilities, and biomass combustion.

Attractive Opportunities in CCUS Absorption Market Trends

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CCUS absorption Market Dynamics

Driver: Growing Focus on Reducing CO2 Emissions

CCUS technology is used to gather CO2 from a variety of sources and transport it to locations where it can be used or stored. Dependence on fossil fuels for energy is the primary source of carbon emissions into the atmosphere. CCUS technology can minimize greenhouse gas emissions from industrial sources. The growing global concern about climate change has positively influenced the adoption of CCUS. For example, the United States government issued an executive order aiming to generate carbon-free electricity by 2030.

To achieve net zero emission targets, governments throughout the world are aggressively encouraging businesses to minimize their carbon footprints and deploy CCUS technologies by offering tax credits.

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

The CCUS technology requires a large capital investment and is more expensive to operate and maintain. As a result, industries are hesitant to invest in technology. The adoption also takes a toll on the process efficiency of the plants, because most of the facilities are not built to use such capture technology. Carbon capture and storage costs encompass the full value chain, including carbon collection at the source, transportation, storage, and usage at end-use applications. This does not create enough revenue to cover the investments made. For example, the cost of adding a CO2 scrubber for post-combustion and an air-separation unit for oxy-fuel technology raises both the initial CAPEX and the additional operating and maintenance costs. The carbon storage locations also require significant CAPEX for initial exploration, site assessment, and site preparation. Furthermore, companies that store captured carbon must bear the cost of monitoring for CO2 leakage. Companies are hesitant to use CCUS technology due to the high investment commitment involved.

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

Carbon capture systems must be developed continuously in order to keep power generating and industrial facilities cost-effective. There is an increasing investment in R&D and demonstration initiatives to create next-generation CO2 collection technology. These solutions address three major issues: minimizing the impact of CO2 capture on power generation capacity, increasing the cost-effectiveness of CO2 capture systems, and scaling up novel carbon capture technologies to the necessary level for full-scale development at power plants. These technologies have the potential to reduce energy costs when compared to established methods.

 Various technology providers are investing substantially and working to reduce carbon-capturing costs, bringing them down to less than USD 30 per million tons of CO2. This propensity towards the development of advanced technology solutions will create an enormous potential to improve the existing adoption of carbon capture, use, and storage globally.

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

Currently, the only source of income for businesses using CCUS technology is tax breaks offered by governments to entice more businesses to use CCUS technology. At this point, the likelihood of making money with this technology is extremely low. The technology implementation method that results in the highest operational and maintenance costs is carbon capture. The effective cost of removing carbon from the sources of emissions is greatly increased by this. In order to lower the effective costs of carbon capture, the capture technology that is currently in use is inefficient. In order to attain increased efficiency in carbon capture, investments in product innovation and technological developments become imperative. Over the course of the period, the effective cost of capture will drop, despite the fact that this will temporarily raise the price of carbon capture. In an attempt to decrease the effective cost of the carbon capture process and increase efficiency, the corporations are always assessing their opportunities to develop innovative technologies. Long-term use of CCUS technology faces significant obstacles, such as this one.

CCUS Absorption Market Ecosystem:

Based on the nd-use industry, the segment is estimated to account for the highest CAGR in the CCUS absorption Market share during the forecast period.

Carbon capture and storage is an innovative technology that can significantly reduce CO2 emissions and thereby reduce the environmental effect of industrial activities around the world. Carbon capture, use, and storage in oil and gas processing is one of the market's primary drivers. Natural gas processing plants produced the majority of CO2 in 2023. According to the EIA, natural gas generation will increase at a rate of 2.7% per year between 2012 and 2040, accounting for roughly 30% of global energy supply by 2040. Carbon capture, usage, and storage in this area will assist build a realistic path for a sustainable environment.

Based on absorption type, Chemical absorption is anticipated to register the highest CAGR in the CCUS absorption Market.

Chemical absorption is a common technology in Carbon Capture, Utilization, and Storage (CCUS) that uses solvents to capture carbon dioxide (CO2) from a variety of sources, including power plants and industrial facilities. The procedure entails choosing an appropriate solvent, usually amines, that can react with CO2 to generate a chemical molecule. The flue gas is treated to eliminate pollutants before entering an absorption column and contacting the solvent. The CO2-rich solvent is then heated, releasing the trapped CO2, which is compressed and transferred for storage or use. The solvent is regenerated by eliminating CO2 and returning to its original composition. Chemical absorption has excellent capture rates, generally surpassing 90%, and is less expensive than other CCUS approaches. However, it is energy-intensive and necessitates frequent solvent replacement owing to deterioration. Despite these obstacles, chemical absorption is a feasible and frequently utilized method of large CO2 reduction, with continuous research targeted at improving efficiency and lowering costs.

North America to continue dominating theCCUS absorption market the forecast period.

North America is the biggest market for CCUS technology. Companies and institutional organizations in the United States have pioneered the technology. The companies have over 35 years of expertise utilizing CCUS technology. This has resulted in the development of advanced capture and storage technology in the country. The country's legislation and policies are also constructed in a way that encourages industrial players to adopt the technology by providing them with technology support and tax breaks. The region is at the forefront of the global deployment of CCUS technology, having incorporated or retrofitted the technology into major oil and gas operations. The widespread adoption of CCUS is a result of people's growing awareness of climate change and their shifting perspectives on using renewable energy sources to lower their carbon footprints.

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CCUS Absorption Market Players

The CCUS absorption Market is dominated by a few globally established players. ExxonMobil Corporation (US), Equinor ASA (Norway), Honeywell International Inc. (US), Fluor Corporation (US), Mitsubishi Heavy Industries Ltd. (Japan), Royal Dutch Shell Plc (Britain), TotalEnergies SE (France), BASF SE (Germany), JGC Holdings Corporation (Japan), Schlumberger Ltd. (US), Aker Solutions (Norway), Siemens AG (Germany), Hitachi Ltd. (Japan), General Electric (US), Chevron Ion Clean Energy (US), among others, are the main producers who have won significant contracts recently. Since global requirements are changing, contracts and new product development have received the majority of attention.

These companies are attempting to establish themselves in the CCUS absorption Market by employing a range of inorganic and organic approaches. A thorough competitive analysis of these major CCUS absorption Market participants is included in the research, along with information on their company profiles, most recent advancements, and important market strategies.

CCUS Absorption Market Report Scope

The study categorizes the CCUS Absorption market based on Type, Form, Application, End-Use Industry, and Region.

By Absorption type

• Chemical Absorption
• Physical Absorption

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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