New Delhi, Oct. 09, 2024 (GLOBE NEWSWIRE) -- The global carbon capture, utilization and storage (CCUS) market is projected to hit the market valuation of US$ 51.6 billion by 2050 from US$ 3.5 billion in 2023 at a CAGR of 10.49% during the forecast period 2024–2050.
The carbon capture, utilization and storage (CCUS) market is poised for significant growth as global efforts to mitigate climate change intensify. As of 2023, the CCUS sector is valued at approximately $2.5 billion, with projections indicating a potential increase to $7 billion by 2030. This growth is driven by the increasing number of large-scale projects, with over 80 operational facilities worldwide capturing around 40 million metric tons of CO2 annually. Countries like Saudi Arabia and the UAE are leading the way in the Middle East with projects that collectively aim to capture over 5 million metric tons of CO2 each year. Meanwhile, in North America, new projects and advancements are expected to boost the region's capture capacity by an additional 20 million metric tons annually by 2035.
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Technological advancements are further enhancing the Carbon capture, utilization and storage (CCUS) market outlook. Innovations in direct air capture and bioenergy with carbon capture and storage (BECCS) are proving to be game-changers. In Iceland, the Climeworks facility, a pioneer in direct air capture, is now capable of capturing 4,000 metric tons of CO2 annually, offering scalable solutions for global applications. In the UK, the Drax BECCS project aims to become the world's largest carbon capture project by 2027, with a potential capacity of capturing 8 million metric tons of CO2 annually. Additionally, partnerships between tech companies and energy firms are fostering the development of new materials and processes that promise to reduce capture costs significantly, potentially lowering operational costs by $20 per metric ton.
Investment in Carbon capture, utilization and storage (CCUS) market is reaching unprecedented levels, with global funding surpassing $10 billion in 2023, a record high. This financial commitment is reflected in the burgeoning pipeline of projects, with over 100 new facilities in various stages of development. Notably, Australia's Gorgon project recently received an additional $1 billion in funding to expand its capacity, targeting an additional 4 million metric tons of CO2 annually. Furthermore, the establishment of international collaborations, such as the North Sea Basin Taskforce, aims to enhance cross-border storage solutions, increasing the potential storage capacity to 50 million metric tons annually by 2040. These developments underscore a promising future for the CCUS market, highlighting its critical role in achieving global climate goals.
Key Findings In Carbon Capture, Utilization and Storage (CCUS) Market
| Market Forecast (2050) | US$ 51.6 Billion |
| CAGR | 10.49% |
| Largest Region (2023) | North America (39.69%) |
| By Service | Carbon capture (54.4%) |
| By Sources | Fossil Fuels (45.01%) |
| By Process | Post Combustion (64.66%) |
| By Technology | Industrial Point-Source CCUS (83.72%) |
| By Usage Destination | SAF (30.0%) |
| By Industry | Oil & Gas (32.16%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Carbon Capture Set to Generate More than 54.4% Market Revenue
The carbon capture segment's dominance in the carbon capture, utilization and storage (CCUS) market is underpinned by several compelling factors that align with both environmental imperatives and economic incentives. According to the Global CCS Institute, there are currently over 150 carbon capture projects in the development pipeline, indicating a 30% increase from the previous year. This surge is fueled by a record $3 billion investment in carbon capture technologies in 2023 alone. The International Monetary Fund (IMF) suggests that effective carbon capture could play a pivotal role in achieving the required 45% reduction in global emissions by 2030 to meet the Paris Agreement targets. Furthermore, carbon capture is being integrated into the decarbonization strategies of major corporations, with over 200 Fortune 500 companies actively investing in or employing carbon capture technologies as part of their sustainability goals.
The growth trajectory of the carbon capture segment in the Carbon capture, utilization and storage (CCUS) market is also influenced by technological advancements and strategic policy frameworks. The cost of capturing CO2 has decreased by nearly 40% over the past decade, making it more economically feasible for a broader range of industries. The European Union's Green Deal, which allocates €1 trillion for sustainable investments, includes substantial support for CCUS projects, aiming to capture 1.5 billion metric tons of CO2 by 2050. Moreover, the oil and gas sector is a significant driver of this growth, with captured CO2 used for enhanced oil recovery projected to contribute an estimated $12 billion in economic value annually. The potential for carbon capture to convert waste emissions into valuable products, such as synthetic fuels and construction materials, further enhances its market appeal. Analysts project that by 2030, the global carbon capture market could expand to encompass over 2 billion metric tons of CO2 captured annually, representing a key component of the global strategy to mitigate climate change impacts.
Fossil Fuels is The Unyielding Pillar of Carbon Capture, Utilization and Storage (CCUS) Market Expansion, Holds 45% Market Share
The fossil fuel sector’s dominance in the carbon capture market is an intricate tale of necessity meeting opportunity. As the largest source of carbon emissions, fossil fuel facilities are naturally positioned to be the principal drivers of the Carbon capture, utilization and storage (CCUS) market. In 2023, the global quest to mitigate climate change saw fossil fuel companies capturing over 30 million metric tons of CO2 from industrial processes. This was facilitated by substantial investments, as funding for CCUS projects related to fossil fuels exceeded $10 billion. The industry’s commitment was further underscored by the establishment of 25 new CCUS research centers globally, dedicated to enhancing carbon capture efficiency. Additionally, fossil fuel companies contributed to 60% of the global CCUS patent filings, highlighting their strategic focus on technological innovation.
The integration of carbon capture with fossil fuel operations in the market is not merely a regulatory compliance measure but also a strategic economic decision in the Carbon capture, utilization and storage (CCUS) market. In 2023, the operational efficiency gains from integrating carbon capture technologies resulted in a 15% cost reduction for fossil fuel plants. Moreover, the market saw a 20% increase in partnerships between fossil fuel companies and technology firms, focusing on scalable CCUS solutions. Enhanced oil recovery using captured CO2 contributed significantly to the market, with 12 major projects boosting oil outputs by an average of 5%. Furthermore, the sector's influence is evident as fossil fuel-related CCUS projects accounted for 75% of all new CCUS initiatives globally. Such developments underscore the fossil fuel industry’s pivotal role in the CCUS market, driven by a blend of environmental responsibility and strategic market positioning, ensuring that fossil fuels remain at the forefront of carbon capture innovation.
Industrial Point-Source CCUS: Cornerstone of Carbon Market Growth, Accounts for Over 83% Market Share
The Industrial Point-Source Carbon Capture, Utilization, and Storage (CCUS) technology is redefining the landscape of the carbon management market. Its strategic prowess lies in its capability to efficiently capture CO2 emissions from concentrated sources, where approximately 75% of global industrial emissions originate. According to McKinsey & Company, industrial sources alone contribute over 7 billion metric tons of CO2 annually, making the CCUS technology indispensable in emission reduction strategies. In 2024, the Carbon capture, utilization and storage (CCUS) market valuation soared to $4.5 billion, with a projected compound annual growth rate (CAGR) of 13% through 2030. The International Renewable Energy Agency highlights that the integration of CCUS in existing industrial infrastructure can reduce operational emissions by up to 90%, significantly influencing industries such as cement and steel, which account for 8% and 7% of global CO2 emissions, respectively.
The robust growth of Industrial Point-Source CCUS is further supported by strategic partnerships and technological advancements. A recent survey by Deloitte indicates that 68% of energy and utility companies are investing in CCUS initiatives to meet carbon neutrality goals by 2050. Moreover, the World Bank has identified over 150 potential CCUS projects across 35 countries, signaling a global commitment to this technology. In the United Kingdom, the government has allocated $1 billion towards the development of CCUS hubs, with the potential to create 50,000 jobs, as reported by the UK Department for Business, Energy & Industrial Strategy. Additionally, advancements in CO2 conversion technologies are expected to unlock a market potential of $80 billion by 2035. As nations and industries prioritize decarbonization, Industrial Point-Source CCUS stands as a pivotal element, not only in driving sustainability but also in unlocking new economic opportunities within the carbon market.
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North America's Dominance: Leading the Carbon Capture Revenue Surge
North America's commanding position in the global carbon capture, utilization and storage (CCUS) market is underscored by its projected ability to capture nearly half of the industry’s revenue. As of 2023, the region is home to 15 operational large-scale CCUS facilities, more than any other part of the world, positioning it as a clear leader in the field. The United States, in particular, has earmarked $10 billion in federal funding for CCUS projects through initiatives like the Energy Act of 2020, highlighting its long-term commitment to reducing carbon emissions. This financial support has catalyzed private investments, with over $20 billion committed by major corporations such as ExxonMobil and Chevron for CCUS technology development over the next decade. North America’s extensive CO2 pipeline infrastructure, stretching over 4,500 miles, facilitates efficient transportation and storage, reinforcing its market leadership. Furthermore, the region’s technological advancements are showcased in projects like NET Power, which recently demonstrated a breakthrough in zero-emissions natural gas power generation.
The economic and environmental potential of North America carbon capture, utilization and storage (CCUS) market is further bolstered by collaborations between government bodies and private enterprises to accelerate innovation and deployment. In 2023, the Department of Energy announced funding for 20 new CCUS pilot projects aimed at capturing a cumulative 10 million tons of CO2 annually by 2025. In Canada, the Alberta Carbon Trunk Line, capable of transporting 14.6 million tons of CO2 per year, exemplifies the region's infrastructure advancements. Additionally, North America is pioneering in integrating CCUS with hydrogen production, as evidenced by the $1.3 billion investment in blue hydrogen projects planned for the Gulf Coast. These initiatives not only drive revenue growth but also position North America at the forefront of the global transition to a low-carbon economy. With ongoing policy support, technological innovation, and strategic investments, North America's trajectory in the CCUS market remains robust and influential.
Top Players in Carbon Capture, Utilization and Storage Market
- Air company
- Air products & chemicals
- Aker Solutions
- Azolla
- Blue planet
- Carbon Clean
- CGG SA
- Chevron
- Dakota Gasification Company
- Equinor
- Exxon Mobil Corporation
- Global Thermostat
- JGC Holdings Corporation
- Kiverdi Inc.
- LanzaTech
- Linde Plc
- Mitsubishi Heavy Industries, Ltd.,
- Net power
- RWE AG
- Saipam
- Schlumberger Limited,
- Shell Plc
- Other Prominent Players
Market Segmentation Overview:
By Services
- Capture
- Transport
- Storage
- Usage/Utilization
By Carbon Capture Source
- Capture
- Transport
- Storage
- Usage/Utilization
By Process
- Post-Combustion
- Pre-Combustion
- Oxy-Fuel Combustion
By Technology
- Industrial-Point-Source CCUS
- Direct Air Capture (DAC)
- Bioenergy With Carbon Capture & Storage (BECCS)
By Usage Destination
- Aromatic polyurethane
- Indoor gardening
- Bioplastic
- SAF
- Astaxanthin
- Fine protein (food)
- Blast furnace carbon source
- Aromatic polycarbonate
- Algae biomass fuel
- Polyhydroxyurethane
By Industry
- Power Generation
- Biomass
- Geothermal
- Hydrogen
- Solar
- Others
- Waste Treatment Plant
- Sewage Treatment
- Commercial Waste Treatment
- Industrial Waste Treatment
- Municipal Solid Waste
- Others Waster Treatment
- Cement
- Oil & Gas
- Iron & Steel
- Chemical & Petrochemical
- Other Industries
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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