09-Nov-2022 | Facts and Factors
According to Facts and Factors, the global carbon capture utilization and storage market size was estimated to be worth roughly USD 1.97 billion in 2021 and is predicted to grow to around USD 10.84 billion by 2028. The global carbon capture utilization and storage market is predicted to grow at a CAGR of roughly 27.56% during the forecast period.
Carbon collection, use, and storage stop CO2 from being emitted into the atmosphere by utilizing a number of methods. The production of energy using fossil fuels and natural gas is the main reason for CO2 emissions globally. Greenhouse gases can be kept out of the atmosphere by adopting carbon capture, usage, and storage. As a result of growing concerns about climate change, more companies are adopting carbon capture, utilization, and storage to reduce emissions. For instance, in reaction to the surge in carbon emissions brought on by burning fossil fuels for electricity, which is a contributing factor to global warming, President Joe Biden signed an executive order mandating that America develop 100% carbon-free power by 2035. Governments from many countries are also offering a variety of advantages to achieve net-zero emissions to promote the use of carbon capture, utilization, and storage. Among the advantages offered by public institutions are tax credits and government assistance to plant owners.
Browse the full “Carbon Capture Utilization and Storage Market Size, Share, Growth Analysis Report By Service (Capture, Transportation, Utilization, and Storage), By Technology (Pre-Combustion Capture, Oxy-Fuel Combustion Capture, and Post-Combustion Capture), By End Use (Oil & Gas, Power Generation, Iron & Steel, Chemical & Petrochemical, Cement, and Others), and By Region - Global and Regional Industry Insights, Overview, Comprehensive Analysis, Trends, Statistical Research, Market Intelligence, Historical Data and Forecast 2022 – 2028" report at https://www.fnfresearch.com/carbon-capture-utilization-and-storage-market
Global electricity generation is dominated by coal- and gas-fired power stations. The energy sector continues to be dominated by power produced from fossil fuels despite the development of renewable energy sources. Gas is the second-largest source of energy generation after coal. Power is the main source of carbon emissions, making up more than 40% of total emissions. Therefore, the technology for carbon capture, use, and storage is essential for reducing the emissions from such power plants. For instance, CCUS technology retrofitting in the electricity sector can aid in lowering carbon emissions from the current plants. As a result, this technology is crucial to advancing energy security, achieving net-zero climate goals, and diversifying the sources of low-carbon supply. According to IEA projections, CCUS-equipped plants will generate 1900 TWh of worldwide power by 2040. During the projected period, these factors are anticipated to fuel market demand for carbon capture, utilization, and storage.
The COVID-19 pandemic is expected to cause a severe decrease in the gross domestic product (GDP) of every impacted nation, coupled with a contraction of the global economy. The International Energy Agency (IEA), an independent intergovernmental agency with headquarters in Paris, predicts a 20% decline in investments in renewable energy technology like CCUS. The bulk of the oil and gas businesses involved in CCUS projects have seen considerable reductions in capital spending in 2020, which has led to delays and cancellations in new CCUS projects.
The global Carbon Capture Utilization and Storage market is segmented based on service, technology, end user and region
Based on services, the market is segmented into capture, transportation, utilization, and storage. In 2020, the market for carbon capture, utilization, and storage was dominated by the capture service segment. The first step in the CCUS process, carbon capture, involves removing CO2 from its emission source. Any large-scale emission process, including coal-fired power stations, the production of gas and oil, and manufacturing sectors like cement, iron, and steel, can use it. The design and operation of the production process, as well as the design and operation of the CO2 capture equipment, are major technical, economic, and financial aspects that affect the cost of CO2 capture.
Based on technology, the market is segmented into pre-combustion capture, oxy-fuel combustion capture, and post-combustion capture. The post-combustion capture segment dominated the growth of the market. In the post-burning process, CO2 is extracted from the flue gas produced by the combustion of fuels like coal or natural gas. According to the National Energy Technology Laboratory, which offers integrated solutions to support the transition to a sustainable energy future, out of the 4 trillion kilowatt hours of power produced in the United States in 2019, 38% came from natural gas and 23% from coal. The use of post-combustion capture technologies is essential to reducing CO2 emissions as more than 60% of electricity is produced by fossil fuel power plants.
Based on end user, the market is segmented into oil & gas, power generation, iron & steel, chemical & petrochemical, cement, and others. The oil & gas segment dominates the market growth. The technology for carbon capture, utilization, and storage is widely utilized in the oil and gas sector to stop the release of greenhouse gases into the atmosphere. For use in deep, offshore, or onshore geological formations for increased oil recovery, the oil and gas sector stores carbon dioxide. For instance, the oil and gas industry captured, stored, and used about 24 million tons of CO2 in 2019, primarily from natural gas processing facilities. According to the Energy Information Administration (EIA), which provides official U.S. energy statistics, natural gas generation is predicted to increase by about 2.7% year between 2012 and 2040. By 2040, this is anticipated to produce 30% of the world's energy. As a result, it is predicted that in the years to come, demand for carbon capture, utilization, and storage will increase due to the use of captured CO2 in the oil and gas industry.
There is expected to be significant growth potential in the global carbon capture utilization and storage market as a result of numerous government programs and plans to spend heavily in the economy and to encourage investment in the carbon capture, utilization, and storage business. For instance, it is predicted that the post-pandemic growth of the carbon capture, utilization, and storage sector will be driven by a considerable increase in the number of new funding announcements in CCUS projects around the world. For instance, the UK government declared in March 2020 that it would invest USD 995 million in the creation of CCUS infrastructure.
With enhanced oil recovery (EOR) playing a large role in the substantial development, the North American area now leads the globe in carbon capture, use, and storage. This is mostly due to the legislative and regulatory environment, which emphasizes CCUS integration in the oil and gas sector at the federal, state, and provincial levels. Additionally, it is projected that the demand for CCUS in this region will be driven by the Biden-Harris Administration's target of net zero emissions by 2050. For instance, the US Department of Energy (DOE) announced a financing of USD 20 million in October 2021 for four CCUS projects in the U.S., as reported on October 18, 2021 in Gas World, the top news source for the global industrial gas sector. Additionally, it is anticipated that the Canadian government's emission reduction program, which limits CO2 emissions from coal power stations, will increase demand for CCUS.
Report Scope
Report Attribute |
Details |
Market Size in 2021 |
USD 1.97 Billion |
Projected Market Size in 2028 |
USD 10.84 Billion |
CAGR Growth Rate |
27.56% CAGR |
Base Year |
2021 |
Forecast Years |
2022-2028 |
Key Market Players |
Royal Dutch Shell PLC, Fluor Corporation, Mitsubishi Heavy Industries Ltd., Linde Plc, Exxon Mobil Corporation, JGC Holdings Corporation, Schlumberger Limited, Aker Solutions, Honeywell International Inc., Halliburton, C-Capture Ltd., Tandem Technical, Carbicrete, Hitachi Ltd., Siemens AG, General Electric, Total S.A., Equinor ASA, and others. |
Key Segment |
By Service, Technology, End Use, and Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
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List of prominent players in the global carbon capture utilization and storage market:
- Royal Dutch Shell plc
- Fluor Corporation
- Mitsubishi Heavy Industries, Ltd.
- Linde plc
- Exxon Mobil Corporation
- JGC Holdings Corporation
- Schlumberger Limited
- Aker Solutions
- Honeywell International Inc.
- Halliburton
- Others
Recent Developments:
In October 2021, ExxonMobil Corporation signed an expression of interest to capture, transport and store CO2 from its Fife Ethylene Plant. It increased its participation in the Acorn carbon capture project in Scotland to achieve this.
In September 2020, Mitsubishi Shipbuilding Co., Ltd., a part of Mitsubishi Heavy Industries, Ltd. (MHI), worked with Nippon Kaiji Kyokai (Japan) and Kawasaki Kisen Kaisha, Ltd. (Japan) to conduct test operations and measurements for a small-scale ship-based CO2 capture demonstration plant. This technology is being tested to verify the equipment’s use as a marine-based CO2 capture system.
The global carbon capture utilization and storage market is segmented as follows:
By Service
- Capture
- Transportation
- Utilization
- Storage
By Technology
- Pre-Combustion Capture
- Oxy-Fuel Combustion Capture
- Post-Combustion Capture
By End Use
- Oil & Gas
- Power Generation
- Iron & Steel
- Chemical & Petrochemical
- Cement
- Others
By Region
- North America
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic Countries
- Benelux Union
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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