Direct Air Carbon Capture Technology Market: Industry Trends and Forecast Analysis (2022-2029)

Direct Air Carbon Capture Technology Market is expected to reach US$ 6.86 Bn. in 2029, with a CAGR of 10.05% for the period 2022-2029, because of the significant emission reductions are required, as well as large-scale carbon removal.
Direct Air Carbon Capture Technology Market Introduction:
Direct air carbon capture is a technique for capturing CO2 from the atmosphere and purifying it for usage or storage. Large fans drive ambient air through a filter, which uses a chemical adsorbent to generate a pure CO2 stream that may be stored. The use of direct air capture technology has a substantial impact on world CO2 levels.

The need for energy has been constantly rising. Variety of industrial processes, such as those in the cement, steel, and power generation industries, utilise a large number of fossil fuels. When fossil fuels are used on such a huge scale, carbon dioxide and other greenhouse gases are released into the atmosphere.

Increased levels of these chemicals in the atmosphere have caused irreversible effects such as climate change and ozone depletion. Existing CO2 must be removed from the atmosphere, according to with Paris Climate Change Agreement. Significant emission reductions are required, as well as large-scale carbon removal. The demand for direct air carbon capture technologies is contributing to the rise of this.

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The report has covered the market trends from 2017 to forecast the market through 2029. 2021 is considered a base year however 2021’s numbers are on the real output of the companies in the market. Special attention is given to 2021 and the effect of lockdown on the demand and supply, and also the impact of lockdown for the next two years on the market. Some companies have done well in lockdown also and specific strategic analysis of those companies is done in the report.

Capturing CO2 from the atmosphere through direct air capture is currently expensive:

CO2 in the atmosphere is significantly less concentrated than, say, flue gas from a power plant or a cement factory. In comparison to other CO2 capture methods and applications, this contributes to DAC's higher energy requirements and costs.

Costs and energy requirements differ depending on the technique utilised and whether the CO2 captured is being geologically stored or used directly at low pressure. In order to be injected into geological formations, CO2 must be crushed under extremely high pressure. This stage raises the plant's capital expenditures (due to the need for extra equipment like a compressor) as well as its operating costs (to run the compressor).

Only small direct air capture plants are operational today, but scale-up is imminent:

In Europe, U.S., and Canada, there are presently nineteen DAC plants in operation. The majority of these facilities are tiny and sell the CO2 they capture for various purposes, such as carbonating drinks.

A joint venture between Carbon Engineering and Occidental Petroleum is currently developing the first large-scale DAC facility in the United States. The plant is expected to absorb up to 1 million tonnes of CO2 per year and might be operating as early as 2024.

The 45Q tax credit (USD 35 per tonne of CO2 used in oil recovery and USD 50 per tonne of CO2 stored) would apply to a plant of this scale. Moreover, if CO2 is utilised to manufacture low-carbon transportation fuels, it may be qualified for the California Low Carbon Fuel Standard credit. In 2021, these credits were valued at USD 200/tCO2.

Climeworks and CarbFix are extracting CO2 from the atmosphere and combining it with CO2 from geothermal fluids for injection and underground storage in basalt rock formations in Iceland. This is the first operational use of its kind, converting CO2 into rock through mineralisation in 23 years. Orca has just been enlarged to capture 4 000 tCO2/year, making it the world's largest DAC plant for CO2 removal. CarbFix plans to construct a CO2 mineral storage facility on a neighbouring site that is able to store CO2 received from a number of customers in Northern Europe.

Direct air capture is receiving increased attention and support:

Both the commercial and public sectors are paying more attention to and supporting DAC. Companies like Microsoft, Stripe, Shopify, and Swiss Re have purchased future DAC removal to offset their CO2 emissions, increasing the voluntary market for DAC-based Capturing co2.

Some of these agreements are hybrid, in which the company acquiring the offsets effectively supports the capital expenditure required to construct the DAC plant that eventually capture CO2 from the atmosphere. For example, United Airlines is investing directly in DAC as part of its promise to become carbon neutral by 2050, while Microsoft is purchasing DAC removal from Climeworks and investing in Orca, the largest running DAC plant for carbon removal, through its climate innovation fund.

With a smaller scale, some DAC firms are also providing commercial offset services to individuals and businesses willing to pay a monthly fee to have CO2 extracted from the atmosphere and stored underground on their behalf. The cost of the subscription ranges from USD 600/tCO2 to USD 1 000/tCO2 (depending on the amount of CO2 removed).

X-Prize (providing up to USD 100 million for up to four potential carbon removal concepts, including DAC) and Breakthrough Energy's Catalyst Program have provided additional assistance for DAC (which raises money from philanthropists, governments and companies to invest in critical decarbonisation technologies, including DAC). Climeworks raised the largest-ever DAC investment of USD 110 million in 2021, making private investment rounds a success as well.

Increasing public funds is also available for the deployment of the DAC. The Department of Energy in the United States announced funding for DAC in March 2021 (USD 22 million) and March 2021 (USD 24 million). Also, the Senate included about USD 9 billion in CCUS funding in the USD 1 trillion Infrastructure Investment and Jobs Act enacted in August 2021. This requires funding for the creation of four DAC hubs. A variety of ideas to raise the value of the 45Q tax credit have been proposed, including one in the 2022 budget plan that would provide USD 85 per tonne of CO2 caught and stored from some industrial applications and USD 120 per tonne for direct air collection and storage. In June 2021, the UK government announced funds for carbon dioxide removal of GBP 100 million (USD 123 million).

The objective of the report is to present a comprehensive analysis of the global Direct Air Carbon Capture Technology 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 has 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 report also helps in understanding the Direct Air Carbon Capture Technology dynamics, structure by analyzing the market segments and projecting the Direct Air Carbon Capture Technology size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global Direct Air Carbon Capture Technology market make the report investor’s guide.
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Direct Air Carbon Capture Technology Market


Base Year
2021
Forecast Period
2022-2029


Historical Data
CAGR
Market Size in 2021
Market Size in 2029


2017 to 2021
10.05%
US$ 3.19 Bn
US$ 6.86 Bn


Segments Covered


by Number of Collectors
• Less than 10 collectors
• More than 10 collectors
by Application
• Enhance Oil Recovery (EOR)
• Industrial
• Agriculture
• Others


Regions Covered


North America
• United States
• Canada
• Mexico
Europe
• UK
• France
• Germany
• Italy
• Spain
• Sweden
• Austria
• Rest of Europe
Asia Pacific
• China
• S Korea
• Japan
• India
• Australia
• Indonesia
• Malaysia
• Vietnam
• Taiwan
• Bangladesh
• Pakistan
• Rest of APAC
Middle East and Africa
• South Africa
• GCC
• Egypt
• Nigeria
• Rest of ME&A
South America
• Brazil
• Argentina
• Rest of South America



Direct Air Carbon Capture Technology Market Key Players
• Infinitree LLC
• Synhelion SA
• National Energy Technology Laboratory
• Global Thermostat LLC
• Soletair Power Oy
• Oak Ridge National Laboratory
• Climeworks AG
• Skytree
• Carbon Engineering Ltd.
• Sunfire GmbH
• Others

Frequently Asked Questions:

1. Which region has the largest share in Direct Air Carbon Capture Technology Market?
Ans: The Asia Pacific held the largest share in 2021.

2. What is the growth rate of the Direct Air Carbon Capture Technology Market?
Ans: The Direct Air Carbon Capture Technology Market is growing at a CAGR of 10.05% during the forecasting period 2022-2029.

3. What segments are covered in the Direct Air Carbon Capture Technology market?
Ans: Direct Air Carbon Capture Technology Market is segmented into Number of Collectors, End-use Industry, and Region.

4. Who are the key players in the Direct Air Carbon Capture Technology market?
Ans: The important key players in the Direct Air Carbon Capture Technology Market are – Infinitree LLC, Synhelion SA, National Energy Technology Laboratory, Global Thermostat LLC, Soletair Power Oy, Oak Ridge National Laboratory, Climeworks AG, Skytree, Carbon Engineering Ltd., Sunfire GmbH, and Others.

5. What is the study period of this market?
Ans: The Direct Air Carbon Capture Technology Market is studied from 2021 to 2029.