GVR Report cover Carbon Capture And Storage Market Size, Share & Trends Report

Carbon Capture And Storage Market Size, Share & Trends Analysis Report By Capture Technology (Pre-combustion, Industrial Process, Post Combustion, Oxy-combustion), By Application, By Region, And Segment Forecasts, 2022 - 2030

  • Report ID: GVR-1-68038-216-7
  • Number of Pages: 198
  • Format: Electronic (PDF)

Report Overview

The global carbon capture and storage market size was valued at USD 3.09 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.9% from 2022 to 2030. Increasing carbon emissions across the globe and concerns regarding the detrimental effect of carbon emissions on the environment have prompted the adoption of carbon capture and storage technology. The U.S. has the largest number of carbon capture and storage projects with 34 planned projects as of 2022. Moreover, in the recent past, the U.S. government started providing loans up to 80% of the cost for nascent stage CCS projects through the department of energy. Companies and governments have launched more than 40 carbon capture projects since 2018, with 10 announced in only the first half of 2021. At this rate, 2021 surpassed 2019 in terms of announcements, indicating that the desire to deploy carbon capture and storage technologies has not decreased throughout the pandemic.

U.S. carbon capture and storage market size, by capture technology, 2020 - 2030 (USD Million)

In March 2021, the U.S. Department of Energy invested USD 24 million in research into technology that captures CO2 emissions from the air, a technology known as direct air capture (DAC). The government also employed favorable policies to boost the CCS trends in the economy such as a provision of tax incentives to stimulate CCS projects. Also, USDA Rural Utilities Service (RUS) facilitated direct loans and loan guarantees to power plants with a minimum of one CCS infrastructure. The support mechanisms employed by the government in the past including Clean Coal Power Initiative Program and U.S. Recovery Act 2009 are also proving effective in boosting the current carbon capture and storage trends.

Capture Technology Insights

The pre-combustion segment held the largest revenue share of over 65.0% in 2021. Pre-combustion CO2 capture using water-gas shift reaction (WGSR) and removal with acid gas removal (AGR) process are currently being commercially practiced globally. The biggest obstacle in the removal of carbon dioxide is the high proportion of nitrogen in combustion air. The solution adopted to overcome this challenge is known as Integrated Gasification Combined Cycle (IGCC). In IGCC, pulverized coal is reacted with pure O2 to form a synthesis gas, which mainly consists of carbon monoxide and hydrogen. In a subsequent CO shift reaction, most of the carbon monoxide with water vapor is converted into carbon dioxide and hydrogen.

Newly developed advanced amine systems, increased energy demand, and heat integration systems are expected to be the main factors driving the post-combustion technology over the forecast period. Post-combustion refers to the capture of carbon dioxide from flue gas after fossil fuels such as natural gas, coal, and oil have been burned. Post-combustion CO2 removal using an aqueous-amine absorber stripper technology is the only commercially available option that applies to both new units and retrofits of existing equipment and has been demonstrated in several pilot projects. These factors are anticipated to drive the demand for this technology in coal power plants in North America and Europe.

A significant proportion of Green House Gasses (GHG) is contributed by the industrial sector. Industrial separation targets the capture of CO2 from various industrial sectors such as cement, steel, and oil and gas. Physical properties, gas volume, and composition of flue gases are different for each industry. Hence, a standard industrial separation technology is absent in the market. These custom-made carbon capture solutions result in high implementation costs for gas separation technology.

Gas separation membranes are most widely used in the industrial sectors to capture carbon dioxide. Various types of membranes including palladium membranes, porous inorganic membranes, zeolites, and polymeric membranes are available in the market. Depending upon the chemical properties of flue gas, a specific type of gas membrane is installed in various industries for carbon capture and storage.

Application Insights

Power generation dominated the market and accounted for a volume share of more than 65.0% in 2021. Carbon capture and storage in the oil & gas industry is one of the key industry segments, which accounted for a significant share in 2021. One of the most crucial factors favoring the adoption of CCS projects in the oil & gas industry is the strong underpinning expertise and high-end technology available within the industry. Factors such as access to low-cost finance, comprehensive value chain relationships, and high revenue of the market players facilitate the adoption of CCS in the oil & gas industry.

Techniques for removing CO2 from raw natural gas streams to meet gas requirements have been in use since the 1930s. While historically, there have been small-scale uses for captured CO2, the majority of the separated CO2 has been emitted into the atmosphere. However, due to current restrictions and taxes imposed by the regional and local governments, the adoption of CCS projects is gaining importance to capture CO2 emitted into the atmosphere.

Global carbon capture and storage market share, by application, 2021 (%)

The iron and steel industry accounted for 7% of all industrial CO2 emissions in 2021, according to the International Energy Agency (IEA) and United Nations Industrial Development Organization (UNIDO). Following the recent regulatory implications, immense research & development is being carried out to reduce CO2 emissions.

Carbon capture and storage systems are widely used in industries such as pulp and paper, chemicals, and fertilizers. Nitrogen-based fertilizers are widely used across the world to replenish the soil nutrients used by crops. The fertilizer production process emits a CO2 stream, which is relatively pure and well-suited for capture. Hence, CCS technologies are best suited for the fertilizer industry and are anticipated to witness significant growth in demand over the forecast period.

Regional Insights

North America dominated the market and accounted for a revenue share of more than 35.0% in 2021. This is attributed to the growing ongoing and future planned carbon capture and storage projects in the region. For instance, in October 2022, CarbonCapture, a climate technology company based in the U.S. that manufactures direct air capture (DAC) systems, appointed Flour Corporation to provide project integration and engineering services for its Project Bison. This project will consist of a multi-megaton atmospheric carbon removal facility situated in Wyoming, U.S., which is anticipated to be operational by late 2023.

Canada accounted for the second-largest share in 2021. Canada's four existing projects, which account for 15% of global capacity, currently capture 4 million tons per yr. By 2030, Canada has planned to capture and store 15 million tons of carbon dioxide. This is expected to help the country meet its goal of cutting greenhouse gas emissions by 40 - 45% from 2005 levels.

Carbon Capture And Storage Market Trends by Region

Mexico accounted for the least share in 2021 in the North American market. In contrast, active steps taken by the Mexican government in the area of CCS implementation will lead to the growth of the CCS market in the country and will make it grow at the fastest rate in the North American region.

Europe has been very active in R&D efforts related to CCU. European countries working in the field of CCU, in the form of pilot projects or testing phases, outnumber other regional countries involved in CCU activities. The development of CCU projects in Europe was majorly initiated by countries such as the U.K. and Germany.

The European Union’s Emission Trading System allowed companies in the industrial and power sectors to sell and buy emission allowances. In past years, the reduction in the volume available increased the cost of the permit by EUR 25. This increase in the incentive for market players led to the adoption of CCU technology across Europe.

Key Companies & Market Share Insights

Key participants in the industry are focusing on technological advancements and innovation to minimize emissions. In addition, industry players are practicing several strategic initiatives to expand their foothold in the market over the coming years. In October 2022, Carbon Engineering announced the start of front-end planning for Direct Air Capture facilities in Texas. This site is expected to facilitate the building of multiple DAC facilities capable of removing approximately 30 million tons of CO2 per year from the atmosphere for targeted sequestration.

In March 2022, CO2CRC and Santos partnered with Korea Trade Insurance Corporation, SKE&S, and Korea-CCUS Association (K-CCUS) for the execution of carbon capture and storage (CCS) projects in Timor-Leste and Australia. According to Santos, these companies have signed a memorandum of understanding (MOU) to collaborate for the development of carbon capture and storage (CCS) facilities in Australia and nearby geographies. Some prominent players in the global carbon capture and storage market include:

  • Shell PLC

  • Aker Solutions

  • Equinor ASA

  • Dakota Gasification Company

  • Linde plc

  • Siemens Energy

  • Fluor Corporation

  • Sulzer Ltd.

  • Mitsubishi Heavy Industries

  • Japan CCS Co., Ltd.

  • Carbon Engineering Ltd.

  • LanzaTech

Carbon Capture And Storage Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 3.28 billion

Revenue forecast in 2030

USD 5.61 billion

Growth rate

CAGR of 6.9% from 2022 to 2030

Base year for estimation

2021

Historical data

2019 - 2020

Forecast period

2022 - 2030

Quantitative units

Volume in million tons, revenue in USD million and CAGR from 2022 to 2030

Report Coverage

Volume forecast, revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments Covered

Capture technology, application, region

Region scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; Germany; U.K.; France; Italy; Norway; Spain; China; India; Japan; South Korea; Australia; Brazil; Argentina; Saudi Arabia; UAE; South Africa

Key companies profiled

Shell PLC; Aker Solutions; Equinor ASA; Dakota Gasification Company; Linde plc; Siemens Energy; Fluor Corporation; Sulzer Ltd.; Mitsubishi Heavy Industries; Japan CCS Co., Ltd.; Carbon Engineering Ltd.; LanzaTech

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Global Carbon Capture And Storage Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the global carbon capture and storage market report based on capture technology, application, and region:

Global Carbon Capture And Storage Market Segmentation

  • Capture Technology Outlook (Volume, Million Tons; Revenue, USD Million, 2019 - 2030)

    • Pre-combustion

    • Industrial Process

    • Post Combustion

    • Oxy-combustion

  • Application Outlook (Volume, Million Tons; Revenue, USD Million, 2019 - 2030)

    • Power Generation

    • Oil & Gas

    • Metal Production

    • Cement

    • Others

  • Regional Outlook (Volume, Million Tons; Revenue, USD Million, 2019 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

      • Italy

      • Spain

      • Norway

    • Asia Pacific

      • China

      • Japan

      • India

      • South Korea

      • Australia

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • Saudi Arabia

      • UAE

      • South Africa

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