by on June 20, 2024
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The global carbon capture and storage market has seen increased demand in recent years owing to the pressing need to reduce greenhouse gas emissions and transition towards cleaner energy sources. Carbon capture technology facilitates the capture of carbon dioxide emissions from fossil fuel-powered facilities like power plants and oil refineries before it enters the atmosphere. The captured CO2 can then be transported to storage locations for permanent storage underground in geological formations or used for enhanced oil recovery. Carbon storage prevents the carbon dioxide from accumulating in the atmosphere and contributes to decarbonizing energy and industrial systems.

Key players operating in the carbon capture and storage market are Morgan Advanced Materials (UK), Mersen (France), TOYO TANSO (Japan), SGL Group (Germany), NAC Carbon Products, Inc. (USA), Graphite India Limited (India), Superior Graphite (USA), Qingdao Tennry Carbon Co., Ltd. (China), Zircar Ceramics (USA) & Schunk Group (Germany).

The global carbon capture and storage market is estimated to be valued at US$ 2.25 billion in 2024 and is expected to exhibit a CAGR of 4.6% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the carbon capture and storage are focused on expanding their production capacities and infrastructure to meet the growing demand for carbon capture technologies. For instance, Shell is developing large scale carbon capture and storage projects and has invested over $2 billion in capturing and storing CO2 since 2020.

The growing demand for cleaner energy sources and stringent government regulations regarding carbon emissions are fueling the adoption of Carbon Capture and Storage Market Size across industries. Power generation and oil & gas industries are deploying carbon capture technologies on a large scale to reduce their carbon footprint.

Major companies are also entering partnerships to develop shared carbon dioxide transport and storage infrastructure to facilitate CCS adoption globally. For example, Equinor partnered with Shell Canada to develop the Carbon Capture and Storage Development at Quest in Canada, one of the largest CCS facilities in the world.

Market Drivers

Rapid decarbonization of energy systems and industries is one of the major drivers of carbon capture and storage market. Many countries and organizations have committed to achieving net zero emissions by 2050 which is fueling investments in carbon reduction technologies. According to the International Energy Agency's Net Zero Emissions by 2050 scenario, carbon capture capacity needs to increase over six-fold by 2030 and over 15-fold by 2050 from current levels.

Government policies in the form of subsidies, tax incentives and mandates for utilizing carbon capture technologies are encouraging widespread adoption of CCS across geographies. Many nations have introduced carbon pricing mechanisms that make carbon capture economically more viable for companies. This is positively impacting the carbon capture and storage market revenue.

Impact of geopolitical situation on the growth of Carbon Capture and storage Market

The current geopolitical scenario presents both opportunities and challenges for the growth of the Carbon Capture and Storage Outlook and Analysis. Heightened tensions between major economies have increased energy security concerns and prioritization of domestic fossil fuel resources. This is prompting investments in technologies to continue use of coal and gas reserves while reducing emissions. However, lack of international cooperation on climate change mitigation hampers agreement on regulations and financing for largescale CCUS projects. Strategies to expand cross-border collaboration through economic incentives can help advance low-carbon technologies globally. Focusing deployment in high-emitting industrial regions first can also aid economic recovery while curbing emissions. Public-private partnerships that share risks and lower costs will play a key role to make CCUS commercially viable in the current uncertain environment.

Geographical regions where the Carbon Capture and storage Market is concentrated in terms of value

Currently, the carbon capture and storage market is concentrated in North America and Europe in terms of value, where early commercial projects are located. The United States accounts for the largest share due to supportive policies and deployment of CCUS for enhanced oil recovery. Several coal-fired power plants with carbon capture in the USA are operational or under construction. Norway is another major market due to ample storage options under the North Sea and tax incentives for emission reduction projects. The UK and Netherlands have also emerged as leading European countries with mature storage infrastructure and cross-sector CCUS plans. However, with initiatives like the carbon border tax under consideration, the market concentration is expected to shift towards major emitting economies in the future.

The fastest growing region for the Carbon Capture and storage Market

Asia Pacific region is poised to be the fastest growing market for carbon capture and storage over the forecast period due to rapid industrialization and coal dependence of emerging economies. Countries like China and India account for a major share of global carbon emissions and have outlined ambitious targets to become carbon neutral by 2060 and 2070 respectively. This has increased focus on commercially viable clean coal technologies for sustained development. Supportive initiatives like carbon pricing, research collaborations and funding for demonstration plants indicate the commitment of APAC governments to mainstream CCUS. Planned projects in industrial clusters and availability of suitable domestic storage locations will help the region emerge at the forefront of CCUS deployment, driving the market at the fastest pace globally.

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