Carbon Capture and Storage Market Trends

Growth Drivers

• Policy and funding support: Strong government backing through climate policies, emissions targets, and financial incentives is a major driver for the market. In April 2024, five countries from northern Europe, including Norway, Denmark, Belgium, the Netherlands, and Sweden, established an arrangement allowing cross-border transport and geological storage of captured CO₂. Tax credits, subsidies, and dedicated funding programs are also encouraging industries to invest in carbon capture solutions. These measures not only lower the financial barriers to adoption but also signal a long-term regulatory commitment, boosting investor confidence and accelerating project development.
   
• Technological advancements: Rapid innovation in capture, transport, and storage technologies is enhancing the efficiency, reliability, and affordability of CCS systems. New methods, such as direct air capture and improved geological monitoring, are expanding the scope and safety of carbon storage. For instance, in September 2021, Climeworks announced the launch of Orca, the world’s first and largest direct air capture and storage plant, easing carbon dioxide removal on a large scale. The facility consists of eight collector containers, with an annual capture capacity of 500 tons each.  These advancements are making CCS a more viable and scalable option for legacy industries and emerging clean energy applications.

Challenge

• Infrastructure gaps: This presents a major hurdle for the widespread adoption of carbon capture and storage. The lack of extensive pipeline networks to transport captured CO2 from emission sources to storage sites limits the feasibility of large-scale projects. Additionally, there are relatively few operational storage facilities that are adequately mapped, licensed, and monitored for long-term use. The scarcity makes it difficult to plan and implement CSS systems across industrial regions, especially in areas far from suitable geological formations, increasing both logistical complexity and overall project costs.