Carbon Capture and Storage Market size is set to reach USD 11 billion by the end of 2035, growing at a CAGR of approximately 15% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of carbon capture and storage was around USD 5 billion. The major element encouraging the growth of the market is the rise in the emission of carbon dioxide. In 2022, the amount of carbon dioxide (CO2) released into the atmosphere as a result of industrial activities and the burning of energy increased by about 0.8%, or approximately 320 Mt, to a new record-high of about 35 Gt. Hence, with the guidance of carbon capture and storage this growing emission is estimated to be captured.
After being captured, the CO2 may be compressed into a liquid or left in a gaseous condition to be delivered to a storage facility through a ship, road, or pipeline. This stored CO2 could be also utilized by improved coalbed methane recovery (ECBM) in order to extract methane gas.
Growth Drivers
An estimated 580 million terajoules of energy are consumed worldwide each year. This is equivalent to 13865 million tonnes of oil or 580 million trillion joules. However, electricity is one of the major contributors to global CO2 emissions. Hence, it is crucial to swiftly decarbonize this sector of the economy in order to achieve net-zero emissions. As a result, the need for CCS is growing. Power stations using CCS would contribute to the stable and robust low-carbon grid of the future.
The stored CO2 is injected in order to extract the remaining crude oil. These remaining crude oils are encountered as the injected CO2 passes through the pore spaces in the rock. As the crude oil and CO2 combine, the viscosity of the oil is reduced, it is pressurized, it is mobilized, and a concentrated oil bank is created that is swept to the producing wells. Oil and gas businesses are able to obtain oil in this method that would otherwise remain in the ground.
The synthesis of ammonia generates high-quality carbon dioxide (CO2), which is also a necessary ingredient in the creation of urea fertilizer. As a result, the industry catches CO2 released during the ammonia manufacturing process and reuses it throughout the urea manufacturing procedure.
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~15% |
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Base Year Market Size (2022) |
~ USD 5 Billion |
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Forecast Year Market Size (2035) |
~ USD 11 Billion |
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Regional Scope |
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Technology (Pre-Combustion Capture, Post Combustion Capture, OXY-Fuel Combustion Capture, Industrial Separation Capture)
The post combustion capture segment in the carbon capture and storage market is poised to gather revenue of approximately USD 5 Billion by the end of 2035. In post combustion capture, CO2 is taken out of the atmosphere after fossil fuels are burned in power plants. At power plants or other point sources, CO2 is extracted from flue gases. Additional industrial applications are currently using the technology. Since PCC can often be integrated into already-existing industrial units and power stations without significantly affecting the original facility, post-combustion recapture is the most common research focus. For both existing and new power plants, post-combustion capture provides significant operational flexibility (partial refit, zero to full capture operation) and can adapt to market conditions.
End User Industry (Food & Beverages, Manufacturing Sector, Coal & Biomass Power Plants, Iron & Steel, Oil & Gas Sector, Chemical Industries)
Carbon capture and storage market from the oil & gas sector segment is set to grow at a share of approximately 30% over the forecast period. The oil and gas sector has expanded as a result of a rising need for both natural gas and crude oil across multiple sectors further boosting market growth. Moreover, the development of carbon capture and storage projects could be greatly aided by the expanding investments in the oil sector to fulfill rising energy demands while focusing on reducing greenhouse gas emissions.
Our in-depth analysis of the global market includes the following segments:
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Service |
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Technology |
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Applications |
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End-User Industry |
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North American Market Forecast
The carbon capture and storage market in North America is estimated to garner revenue of close to USD 7 Billion by the end of 2035, backed by growing CCS projects in this region. There were about 15 CCS projects operating in North America as of April 2022, while an additional approximately 79 CCS projects were in various stages of development. Additionally, growing initiatives of net zero is also set to influence the growth of the market in this region.
APAC Market Analysis
The Asia Pacific carbon capture and storage market is set to have significant growth over the forecast period. Due to the combination of an increase in industrialization and rising investments in the expansion of manufacturing facilities the market for CCS is anticipated to increase. Additionally, the rapid construction of gas and coal power plants and coal mining to meet the region's rising energy demand would hasten the expansion of the Asia Pacific market.
Author Credits: Payel Roy, Dhruv Bhatia
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