Carbon Capture Utilization and Storage Market – Analysis and Forecast upto 2031
Carbon Capture Utilization and Storage Industry Overview
Carbon Capture Utilization and Storage Market was valued at $2,100.0 million in 2021 and is expected to reach $12,159.6 million by 2031, growing at a CAGR of 19.2% between 2022 and 2031. The growth in the global carbon capture utilization and storage market is expected to be driven by an increasing focus on reducing carbon emissions and the growing demand for enhanced oil recovery (EOR). Lack of storage facilities and leakage of CO2 from underground storage are some key restraining factors of the industry.
Market Lifecycle Stage
The global carbon capture utilization and storage market is still in a nascent phase. New capturing technologies such as bio-based capturing and membrane capturing are expected to reduce the carbon capture process cost.
Figure: Global Carbon Capture Utilization and Storage Market Snapshot, $Million, 2021, 2022, and 2031
With an increased worldwide focus on achieving net-zero emissions, the shift to eco-friendly industrial practices increases financing opportunities. The shift is more prominent in the oil and gas industry in regions such as North America and the Middle East. The U.S. has the largest carbon capture utilization and storage industry as oil and gas companies use captured carbon for enhanced oil recovery.
Impact of COVID-19
The impact of COVID-19 on carbon capture utilization and storage (CCUS) was limited as it has still not been commercialized. Also, most investments toward CCUS plants were announced prior to the pandemic and are currently in the construction phase.
The new plants, such as the iCORD project in Croatia and Dry Fork Power Plant in the U.S., will start operation in 2025. Therefore, due to the delayed nature of the industry, it did not suffer any significant impact.
Segmentation 1: by Application
o Oil and Gas Industry
o Power Industry
o Others (Cement Industry and Chemical Industry)
The oil and gas industry accounts for a 61.7% share of the global CCUS market. Enhanced-oil recovery is the key industrial use of CO2, wherein pressurized CO2 is injected into oil and gas reservoirs to extract more hydrocarbons.
Segmentation 2: by Capture Technology
o Pre-Combustion Carbon Capture
o Post-Combustion Carbon Capture
o Oxy-Fuel Combustion Carbon Capture
The post-combustion carbon capture technology accounts for 95% of the global CCUS market; since it is commercially viable compared to other technologies.
Segmentation 3: by Region
o North America – U.S. and Canada
o Europe – Belgium, Norway, Croatia, Iceland, and Rest-of-Europe
o Asia-Pacific – China and Australia
o Middle East– U.A.E., Qatar, and Saudi Arabia
o Rest-of-the-World – South America and Africa
North America accounts for a 68% share of the global CCUS market, owing to the presence of operational CCUS plants in the U.S. (Texas, Wyoming) and Canada (Saskatchewan, Alberta).
Recent Developments in Global Carbon Capture Utilization and Storage Market
- In March 2022, ExxonMobil Corporation announced hydrogen production facility, carbon capture, and storage projects at its integrated refining and petrochemical site in Baytown, Texas, U.S. This would support companies in reducing emissions from local industries and company operations.
- In November 2021, ExxonMobil Corporation and Petronas signed a Memorandum of Understanding (MoU) to collaborate and jointly explore potential carbon capture and storage projects in Malaysia. This MoU would strengthen a decades-long strategic partnership between ExxonMobil and Petronas and has the objective of helping Malaysia reduce emissions and achieve its net-zero ambitions.
- In May 2021, Linde plc was selected by the U.S. Department of Energy’s National Energy Technology Laboratory (NETL) to install and test a 200 tons/day CO2 capture large pilot plant at the City Water, Light & Power (CWLP) power plant in Springfield, IL. The project would be executed in collaboration with the BASF, the University of Illinois at Urbana Champaign, ACS, and CWLP. The operation of this facility provides an opportunity to demonstrate economically attractive and innovative capture techniques.
- In May 2021, Linde plc was selected by the U.S. Department of Energy’s National Energy Technology Laboratory (NETL) to install and test a 200 tons/day CO2 capture large pilot plant at the City Water, Light & Power (CWLP) power plant in Springfield, IL. The project will be executed in collaboration with the BASF, the University of Illinois at Urbana Champaign, ACS, and CWLP.
Demand – Drivers and Limitations
Following are the demand drivers for the global carbon capture utilization and storage market:
- Favorable Government Policies Driving the Deployment of CCUS Technology
- Increasing Demand for CO2 for Enhanced Oil Recovery (EOR)
- Rise in Adoption of Net-Zero Emissions Targets
The market is expected to face some limitations too due to the following challenges:
- High Initial Cost of Carbon Capture Utilization and Storage Process
- CO2 Leakage from the Underground Storage Reservoirs
According to Pooja Tanna, Lead Analyst, BIS Research, “The carbon capture utilization and storage is expected to be the best option for reducing carbon footprints. With the increasing investments globally and the rising government support through incentives, the growth of the CCUS industry is expected to be exponential.”
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How Can This Report Add Value to an Organization ?
Product/Innovation Strategy: The product segment helps the reader understand the different types of technology available for carbon capture and their potential globally. Moreover, the study provides the reader a detailed understanding of the different carbon capture utilization and storage application in industries such as the oil and gas industry, power industry, and others (cement and chemical industry).
Growth/Marketing Strategy: Business expansion, partnership, collaboration, and joint venture are some key strategies adopted by key players operating in the space. For instance, in March 2022, ExxonMobil Corporation announced its plans for a hydrogen production facility and one of the world’s largest carbon capture and storage projects at its integrated refining and petrochemical site in Baytown, Texas, U.S. This supports companies’ efforts to reduce emissions from local industries and company operations. This project can play an important role in achieving the country’s goal of reducing emissions.
Competitive Strategy: Key players in the global carbon capture utilization and storage market analyzed and profiled in the study involve technology providers and companies capturing, utilizing, and storing carbon. Moreover, a detailed competitive benchmarking of the players operating in the global carbon capture utilization and storage market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
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