Carbon Capture and Storage (CCS) Market – Global Industry Analysis and Forecast (2022-2027)

Carbon Capture and Storage (CCS) Market  was valued at US$ 6.92 Bn. in 2021. Global Carbon Capture and Storage Market (CCS) size is estimated to grow at a CAGR of 6.10% during the forecast period.
Carbon Capture and Storage (CCS) Market Overview:
The Carbon Storage and Capture (CCS) separates CO2 emissions at the source and stores them geologically. In the CCS process, CO2 is captured first and then the majority of its related components are cleansed before it can be stored. CO2 is commonly separated and captured as a by-product of industrial processes. The CO2 is then compressed and delivered to a location where it will be sequestered in tanks, pipes, or ships. CCS is an emissions reduction technology having a key role in meeting global climate targets.


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The importance of CCS is highlighted in the IEA's sustainable development scenario, which represents a speedy transition to net-zero emissions. The CCS technologies alone account for more than 15% of cumulative emissions reductions needed to fulfill the global target by 2050. By 2050, it is expected that around 5.6 gigatonnes of CO2 will need to be absorbed and stored via CCS technology to meet the net-zero emissions targets.

2021 is considered as a base year to forecast the market from 2022 to 2027. 2021’s market size is estimated on real numbers and outputs of the key players and major players across the globe. Past five years' trends are considered while forecasting the market through 2027.
Carbon Capture and Storage (CCS) Market  Dynamics:
The rapid deployment of all available emission reduction technologies, along with the early retirement of some emission-intensive facilities and the retrofitting of others with technology like CCS, is expected to achieve net-zero emissions around mid-century and keep temperature increases well below 2°C. According to the IPCC 1.5°C Special Report, 350 to 1200 gigatonnes of CO2 need to be caught and stored this century to meet zero-emission targets. This is equivalent to between 10 and 35 times our present yearly global CO2 emissions from fossil fuels. Currently, more than 40 megatonnes of CO2 are captured and stored, which is about 0.1% of current emissions across the globe. Therefore to meet the IPCC's projections, carbon capture must grow by at least 100-fold by 2050, which in turn is expected to uplift the CCS market growth during the forecast period.

Following the remarkable 2015 United Nations Paris Agreement, an increasing number of countries are committing to net-zero emissions. Carbon capture and storage (CCS) has long been addressed as a promising way to directly address emissions from the energy and industrial sectors, and it is an important part of plans to achieve net-zero emissions. At the current rate of deployment, CO2 storage capacity by 2050 is expected to be 700 million tonnes per year, just 10% of what is required. To meet the net-zero targets the adoption of CCS technology is expected to boost during the forecast period.

The International Energy Agency's (IEA) Sustainable Development Scenario represents a future in which the United Nations (UN) energy-related sustainable development targets for emissions, energy availability, and air quality are expected to meet. The amount of CO2 absorbed by CCS increases from roughly 40 Mt per year today to around 5.6 gigatonnes (Gt) in 2050, a more than 100-fold increase. It makes a considerable impact, accounting for 16 to 90% of emissions reductions in the iron and steel, cement, chemicals, fuel transformation, and power generation industries.

Current Projects and New Funding Initiatives across the globe:

United Kingdom: The UK government has announced in March 2020 that it would invest US$ 995 million in CCS infrastructure, including the installation of CCS in at least two industrial areas and the installation of CCS in a gas-fired power plant. In July 2020, the UK has announced an additional US$ 178 million investment to reduce emissions from heavy industries.

United States: The US government allocated US$ 85 million in grants in April 2020 and announced US$ 46 million in fresh grants for CCS development and deployment in September 2020 followed by another US$ 72 million in financing in October 2020. In addition, In July 2020, the US Department of Energy (DOE) has declared a grant of US$ 11.5 million for the flexible CCS projects.

Australia: In May 2020, the Australian government announced that CCS would be eligible for current clean technology funding programs, such as the Clean Energy Finance Corporation's USD 7.1 million investment fund.

Norway: In Sept 2020, the Norwegian government has announced that it will invest US$ 1.8 billion in the Longship CCS project (previously known as the "Full-Scale CCS Project"), including 10 years of operational assistance. The Longship project is expected to cost US$ 2.7 billion.

CCS importance and current trends regarding Net Zero Emission targets:

A growing number of governments and organizations across the globe have set net-zero emissions goals, highlighting the importance of CCS. By August 2020, 14 countries and the European Union (EU) – accounting for around 10% of global CO2 energy-related emissions, had formally established net-zero emissions targets in national law or planned legislation, with a target date of 2045, 2050, or beyond. It is expected that during the forecast period number of countries would adopt CCS technology to reduce emissions.

A growing number of businesses in a variety of industries, such as oil and gas, power production, manufacturing, transportation, and technological services, are committing to net-zero emissions goals. The 2050 net-zero commitments include more than 20% of global oil and gas production, with CCS expected to play a role in every scenario. For instance, in the cement industry, companies like Dalmia Cement and Heidelberg Cement, and ArcelorMittal in the steel industry, are actively pursuing CCS to fulfill their goals regarding net-zero emissions.

In 2020, Microsoft has announced that it aims to be carbon negative by 2030, and by 2050, it wants to have eliminated all of the carbon it has emitted since its founding in 1975 from the atmosphere. A portfolio of solutions, consisting of afforestation and reforestation, soil carbon sequestration, BECCS, and DACS, are expected to be used to achieve this. Microsoft has launched a US$ 1 billion climate innovation fund to help accelerate the development of carbon reduction, capture, and removal technologies across the globe.


Carbon Capture and Storage (CCS) Market Segment Analysis:
Based on the Application, the Carbon Capture and Storage (CCS) Market is segmented into Oil and Gas, Chemical Processing, Power Generation, and Others. The Oil and Gas segment held the largest market share, accounting for 42.67% in 2021. Carbon Capture and Storage (CCS) technology assists the oil and gas industry in reducing greenhouse gas emissions. Carbon dioxide is stored in deep, onshore, or offshore geological formations, using CCS technologies in the oil and gas industry for better oil recovery, which in turn drives the CCS market growth for this segment.

For instance, Carbon dioxide has been used in enhanced oil recovery operations in Texas (US) for more than three decades; EOR accounts for over 20% of total oil output, and some fields achieve recoveries of around 70%. The Kyoto Clean Development Mechanism is mostly used by OPEC countries that support CCS technology. For instance, from 1,500 million cubic feet per day in the early 1980s to less than 200 million cubic feet per day today, Abu Dhabi National Oil Company has significantly reduced gas flaring. This reduced pollutants and increased the amount of gas available for export or internal usage.
Carbon Capture and Storage (CCS) Market Regional Insights:
North America region held the largest market share accounted for 42.36% in 2021. The region’s growth is attributed to the growing investment in research and development activities along with existing high-capacity carbon capture and storage projects. For instance, in June 2021, the US Department of Energy (DOE) announced a US$ 12 million to boost six R&D projects in CCS technology.

The growing demand from the region, for clean technology, which is accompanied by growing usage of CO2 in EOR techniques is driving the CCS market growth for the North American region. The EOR operations in the United States account for over 30 million metric tonnes per year or 75 percent of global carbon capture capability. In addition, The FUTURE Act (Further Capital Carbon Capture, Utilization, Technology, Underground Storage, and Reduced Emissions) was introduced under the 45Q portion of the law to give incentives for capturing carbon dioxide from industrial and power sources for usage in EOR. These factors are driving the CCS market growth in the region.

The Asia Pacific region is expected to witness significant growth at a CAGR of 10.98% during the forecast period. The presence of high volume storage locations across the subsea oil & gas reservoirs with EOR operations along with favorable government initiatives are driving the CCS market growth in the region.

The objective of the report is to present a comprehensive analysis of the global Carbon Capture and Storage (CCS) Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also help in understanding the Carbon Capture and Storage (CCS) Market dynamic, structure by analyzing the market segments and projecting the Carbon Capture and Storage (CCS) Market size. Clear representation of competitive analysis of key players by Vehicle type, price, financial position, product portfolio, growth strategies, and regional presence in the Carbon Capture and Storage (CCS) Market make the report investor’s guide.
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Carbon Capture and Storage (CCS) Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2027


Historical Data:
2017 to 2021
Market Size in 2021:
US$ 6.92 Bn.


Forecast Period 2022 to 2027 CAGR:
6.10%
Market Size in 2027:
US$ 9.87 Bn.


 Segments Covered:
by Technology
• Pre-Combustion
• Industrial
• Oxy-Firing
• Post-Combustion


by Application
• Oil and Gas
• Chemical Processing
• Power Generation
• Others



Carbon Capture and Storage (CCS) Market by Region
• North America
• Europe
• Asia Pacific
• Latin America
• The Middle East and Africa
Carbon Capture and Storage (CCS)Market Key Players:
• Siemens AG
• Mitsubishi Heavy Industries Ltd
• Hitachi Ltd
• Aker Solutions
• Fluor Corporation
• Halliburton
• Honeywell International Inc.
• Linde AG
• Exxonmobil Corporation
• General Electric
• Schlumberger Limited
• Shell Global
• Statoil
• Dakota Gasification Company
• Japan CCS Co., Ltd.
• Alstom
• Shell CANSOLV
• Maersk Oil
• HTC CO2 Systems Corp.
• Sulzer

Frequently Asked Questions:

1. Which region has the largest share in Global Carbon Capture and Storage (CCS) Market?
Ans: North America region held the highest share in 2021.

2. What is the growth rate of Global Carbon Capture and Storage (CCS) Market?
Ans: The Global Carbon Capture and Storage (CCS) Market is expected to grow at a CAGR of 6.10% during forecasting period 2022-2027.

3. What is scope of the Global Carbon Capture and Storage (CCS) market report?
Ans: Global Carbon Capture and Storage (CCS) Market report helps with the PESTEL, PORTER, COVID-19 Impact analysis, Recommendations for Investors & Leaders, and market estimation of the forecast period.

4. Who are the key players in Global Carbon Capture and Storage (CCS) market?
Ans: The important key players in the Global Carbon Capture and Storage (CCS) Market are – Siemens AG, Mitsubishi Heavy Industries Ltd, Hitachi Ltd, Aker Solutions, Fluor Corporation, Halliburton, Honeywell International Inc., Linde AG, Exxonmobil Corporation, General Electric, Schlumberger Limited, Shell Global, Statoil, Dakota Gasification Company, Japan CCS Co., Ltd., Alstom, and Shell CANSOLV.

5. What is the study period of this market?
Ans: The Global Carbon Capture and Storage (CCS) Market is studied from 2021 to 2027.