The global Carbon Capture and Storage (CCS) Market, a vital player in the fight against greenhouse gas emissions, is experiencing unprecedented growth. According to recent data, the market, valued at US$4.17 billion in 2020, is projected to surge to an impressive US$9.42 billion by 2026, registering an astounding compound annual growth rate (CAGR) of 15.7% during the forecast period.
Carbon dioxide (CO2), a notorious greenhouse gas, poses significant environmental and health hazards. Approximately 60% of global greenhouse gas emissions originate from fossil fuel-based power plants and industrial sources. Despite a continuous year-on-year increase in carbon dioxide emissions from these facilities, the relentless pursuit of technological innovations and policy advancements has cast an optimistic outlook on the future of CCS technologies.
CCS technology boasts the capability to capture over 90% of carbon dioxide emissions produced from the use of fossil fuels in electricity generation and industrial processes, effectively preventing the release of carbon dioxide into the atmosphere. Shockingly, in 2019, over 30 billion metric tons of carbon dioxide were discharged from industrial activities and fossil fuel combustion, but merely 35 million tons were captured using CCS technology. This stark discrepancy, where only 0.1-0.2% of carbon dioxide emissions from power plants and industrial facilities are captured and stored, underscores the massive untapped potential in the global carbon capture and storage market.
The global commitment to combat climate change, epitomized by the Paris Climate Agreement, the Kyoto Protocol treaty, and the Climate Change Act, has bolstered the CCS market. Its ability to capture and store carbon dioxide emissions at both pre-combustion and post-combustion levels aligns with global climate objectives. Industries such as iron and steel, cement, and chemicals, known for carbon-intensive processes and high-temperature heat requirements, face daunting decarbonization challenges. The International Energy Agency (IEA) emphasizes that achieving net-zero emissions in these hard-to-decarbonize sectors would be prohibitively expensive without CCS technology. Consequently, CCS stands as one of the most advanced and cost-effective solutions.
However, despite its undeniable potential, the CCS market encounters a critical challenge. The absence of a direct financial incentive for companies to adopt CCS technology within a free and unregulated market structure poses a significant hurdle. Even enhanced oil and gas recovery technologies have alternative options like using nitrogen or natural CO2 sources. Therefore, the CCS market relies heavily on regulatory intervention, such as carbon emissions pricing or taxation. The aftermath of the COVID-19 pandemic also introduced delays in funding for CCS projects, owing to capital expenditure cuts by major oil and gas companies. Nevertheless, several planned CCS projects are poised for full commercialization by 2030.
In 2020, the oil and gas industry emerged as a key end-user segment in the CCS market, with enhanced oil recovery (EOR) commanding a 61% share. Oil and gas companies predominantly employ captured CO2 for EOR and blue hydrogen production, with a portion of injected CO2 temporarily stored. Nevertheless, the long-term viability of EOR as a carbon storage method remains under scrutiny. Dedicated geological storage, facilitated through pipelines and tankers, is also essential in storing the majority of captured CO2, primarily for use in oil and gas operations.
Geographically, Europe shines as a prominent CCS market, with several commercial projects aiming for operation before 2030. The European Unions US$11.32 billion Innovation fund, launched in 2020, is expected to play a pivotal role in funding CCS initiatives. North America, particularly the United States, boasts a significant presence in the CCS market, with numerous projects spanning various industries. In the Asia-Pacific region, countries like China, Australia, and South Korea lead in CCS adoption, with 10 commercial facilities either operating or in development. The Middle East & Africa have witnessed the emergence of commercial CCS facilities, while Brazil stands as the sole active nation in the Latin American CCS market.
Leading players in the global Carbon Capture and Storage market include Siemens AG, GE, Babcock & Wilcox Enterprises, Inc., Mitsubishi Heavy Industrial Ltd., Air Liquid, Air Products & Chemical Inc., Linde AG, Royal Dutch Shell plc, Global Thermostat, Climeworks, Total SE, Carbon Engineering Ltd., and CO2 Solutions.
The global Carbon Capture and Storage market is on a trajectory of remarkable growth, driven by the urgent need to combat climate change and achieve sustainability goals. As governments, industries, and environmental advocates intensify their efforts, CCS technologies are poised to play a pivotal role in reducing carbon emissions and preserving our planet for future generations.
Global Carbon Capture and Storage (CCS) Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021-2026 – [2023 UPDATE Available – Forecast 2023-2030*] (By Capture Type Coverage, Transport Type, Storage Type, By Geography, Leading Companies) https://www.fairfieldmarketresearch.com/report/carbon-capture-and-storage-ccs-market
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