Carbon Capture And Storage (CCS) Market Report

Carbon Capture And Storage (CCS) Market Analysis By Application (EOR, Industrial & Agriculture), By Capture Technology (Pre-Combustion, Industrial, Oxy-Firing & Post-Combustion), Competitive Strategies, And Segment Forecasts, 2014 - 2025

Published: November 2016  |  104 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-216-7

Industry Insights

The global carbon capture and storage (CCS) market size was 61,150 kilo tons in 2015. The national governments of various countries especially in the North America and the European region are accelerating their drive to combat climate change with a sharp focus on the power sector, the source of around 40% of carbon dioxide emissions.

The rising energy demand globally has led to the increasing uses of fossil fuels, the major source of carbon emission. Though many alternate technologies such as wind, solar and nuclear are now in practical use or under development, CCS is the most viable technology currently available to mitigate greenhouse gas emissions from large scale fossil fuel usage.

Currently, over 22 CCS projects are in operation globally and another 14 planned projects are expected to be functional in the next few years. However, the global CCS industry is still at its nascent stage in comparison to the amount of carbon dioxide emitted yearly. Some of the factors such as inconsistent government regulations and economic slowdown in the past few years especially in Europe and China are the main factors responsible for the slow growth of the market.

U.S. CCS market revenue by capture technology, 2014 - 2025 (USD Million)

U.S. CCS market

The current regulatory frame work is not designed prominently to address some of the special issues that arise in the CCS industry such as cautious monitoring & long-term stewardship and the need for thorough site characterization. A robust legal and regulatory framework is necessary, as the deployment of this technology is likely to involve various parties in the process of capture, transport, sequestration and storage.

To further complicate matters, assurances on the containment of CO2 along with potential financial liability and environmental or social issues related to leakage of the gas will need to be clearly defined, even after the end of operation. Apart from a cost-effective option for reducing CO2 emissions in large energy-intensive industries CCS is the superlative technology for controlling air pollution. In fact, the promising short-term potential for the technology globally lies not only in the power sector however it is also dependent in reducing CO2 emissions from the industrial activities that currently emit highly clear streams of CO2.

Owing to these factors, the carbon capture and storage market is anticipated to develop substantially over the next eight years. However, currently this technology is still not adopted in many countries owing to various regulatory issues and also for its high initial and operational cost.

Industry players have been focusing on developing new and more efficient carbon capture technologies and process. One of such technologies is Post Cap, a post carbon capture technology.It is based on amino acid salt (AAS) solution as solvent. This is applicable to coal-fired power stations and natural gas-fired power plants. It can be integrated in new power plants, but could also be retrofitted to existing power plants at small, medium or large scale.

Technology Insights

Pre-combustion capture technologies for carbon dioxide constituted the largest share accounting for over 73% in 2015 and are anticipated to witness considerable growth over the forecast period. Pre-combustion CO2 capture utilizing water gas shift reaction and removal with acid gas removal (AGR) process is currently being commercially practiced globally.

Advantage of using this capture technology under pressure is that it incurs less of an energy penalty, i.e., approximately 20% than current PCC technology (approx.30%) at 90% CO2 capture. On account of these factors pre-combustion capture technology is expected to dominate the capture type sector in the near future.

The post-combustion capture technology is anticipated to grow at the highest CAGR of 15.6% from 2016 to 2025. Increased energy generation, newly developed advanced amine systems and heat integration systems are expected to be the main factors driving its demand over the forecast period.

Application Insights

EOR activities dominated the global application demand while accounting for around 80% of the total revenue in 2015. Depleting production rates in conventional oil reserves along with increasing reliance on crude oil imports primarily in the Asia Pacific have led to the growth of gas injection EOR techniques. With the increasing fossil fuels demand, the demand-supply gap is also widening.

Volatile crude oil prices are also anticipated to drive market penetration in EOR applications in the near future. The increasing need to extract oil & gas from low permeability and unconventional reserves including carbonate traps and tight sands is expected to positively influence the global EOR process demand.

Global CCS market volume share, by application, 2025 (KiloTons)

Global CCS market

European and the North American companies are mainly focusing towards R&D for improvising EOR processes. Technological developments along with the introduction of several modern technologies that utilize the CO2 released in the production stage are projected to have immense growth prospects in the next nine years. Owing to these factors CO2 application for EOR are expected to dominate the CSS market globally over the forecast period.

Significant technological advancements in non-power sectors such as petroleum refining, chemical,cement manufacturing, and metal foundry in mature economies such as Netherlands, UK, the U.S., and Japan have witnessed implementation of CCS technologies in small or pilot phases. Such favorable initiatives coupled with increasing awareness among policy makers across various industrial sectors regarding the benefits of such techniques to curtail CO2 emissions provide immense opportunities for the future investments.

Regional Insights

North America CCS industry dominated the global demand accounting for over 60% of the total market. Stringent regulatory framework for cleaner environment coupled with increasing need of carbon dioxide in enhanced oil recovery processes owing to increasing number of matured oilfields are expected to be the major factors driving the industry penetration.

Around 14 projects are currently operational in the region with majority of operations centered in the U.S. Some of the prominent projects include Shute Creek Gas processing facility, Air Products Steam Reformer EOR Project in Quest, and the Illinois Industrial CCS project.

Asia Pacific is estimated to grow at the highest CAGR of 16.4% from 2016 to 2024. The emerging economies in the region such as China and India along with countries such as Japan, Indonesia and Malaysia are focusing on cleaner environment owing to rapid industrialization in the region, thereby, leading to increased carbon emissions.

Competitive Insights

Key players include Shell CANSLV, AkerSolutions, Statoil, Linde Engineering, Mitsubishi Heavy Industries and Sulzer.The market is dominated mainly by a large number of oil and gas industry players. High initial capital investment coupled with high operational cost restricts the market entry for new players. The differences in the regulatory framework in dare another matter of concern.

CCS Report Scope

Attribute

Details

Base year for estimation

2015

Actual estimates/Historic data

2013 - 2015

Forecast period

2016 - 2024

Market representation

Revenue in USD Million & CAGR from 2016 to 2024

Regional scope

North America, Europe, Asia Pacific, Latin America & MEA

Country scope

U.S., Canada, UK, Germany, Japan, China, Brazil, Mexico, South Africa

Report coverage             

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization

 

Segments covered in the report

This report forecasts volume & revenue growth at global, regional & country levels and provides an analysis on the trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global carbon capture and storage (CCS) market on the basis of application, capture technology and region:

  • Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • Enhanced Oil recovery (EOR)

    • Industrial

    • Agriculture

  • Capture Technology Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • Pre-Combustion

    • Industrial separation

    • Oxy-fuel

    • Post-combustion

  • Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • UK

      • Norway

      • Netherlands

    • Asia Pacific

      • China

      • Japan

    • Central and South America

      • Brazil

    • Middle East and Africa

      • Saudi Arabia

      • UAE

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