Carbon capture and storage (CCS) refers to technologies that can greatly reduce carbon dioxide (CO2) emissions from industrial facilities such as power plants and manufacturing plants into the atmosphere. CCS technologies capture the CO2 from large stationary sources like power plants and industrial facilities, preventing its release into the atmosphere. The captured CO2 is compressed as a dense liquid or supercritical fluid and transported to safe underground geologic formations for long-term isolation from the atmosphere. Power plants and other industrial facilities equipped with CCS can capture over 90% of the CO2 emissions that would otherwise be released.
The global Carbon Capture and storage Market is estimated to be valued at US$ 2.25 Bn in 2024 and is expected to exhibit a CAGR of 10.59% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the key drivers supporting the growth of carbon capture and storage market is growing environmental concerns. CCS technologies help reduce the carbon footprint of fossil fuel-based power generation and industrial facilities significantly by capturing and storing CO2 emissions. According to the International Energy Agency's CCS report 2022, around 140 large-scale CCS facilities need to be operational by 2030 in order to achieve net-zero emissions globally by 2050. Governments across regions are incentivizing CCS projects through tax credits, mandates, and funding to curb emissions and meet their decarbonization goals stipulated by the Paris Agreement. For instance, in 2020, the US Department of Energy allocated $353M for six large-scale CCS projects under its Carbon Capture Program. Additionally, recovering CO2 for enhanced oil recovery (EOR) helps offset the cost of CCS deployment, further propelling the market growth.
SWOT Analysis
Strength: Carbon capture and storage (CCS) helps reduce carbon dioxide emissions from large stationary sources like power plants and industrial facilities. It is a potentially viable approach to mitigate climate change by enabling continued use of fossil fuels for power generation. CCS technology can capture over 90% of the carbon dioxide emissions produced during fossil fuel combustion. The captured carbon dioxide can then be injected deep underground into porous rock formations for long-term storage.
Weakness: CCS technology is still in the development and demonstration stage, not yet commercially proven at scale. Successful deployment of large-scale integrated CCS projects involves high capital and operating costs. Public acceptance of carbon dioxide storage may be low in some regions due to uncertainty about long-term storage integrity and induced seismicity risks.
Opportunity: Stringent regulations and carbon pricing policies being adopted globally to curb greenhouse gas emissions offer a market driver for CCS adoption. Many countries consider CCS a crucial interim technology on the pathway to achieve net-zero emission targets by 2050. Combining CCS with alternative energy sources like biomass power generation provides negative carbon dioxide emissions.
Threats: Competing low-carbon technologies like renewable energy and energy storage are advancing rapidly and may become more cost-competitive than fossil fuel plants equipped with CCS. Uncertainties around long-term storage and potential leaks from stored reservoirs could undermine public trust in the technology.
Key Takeaways
The Global Carbon Capture And Storage Market Demand is expected to witness high growth over the forecast period from 2024 to 2031 driven by supportive government policies and regulations being adopted worldwide to reduce carbon emissions. 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 10.59% over the forecast period 2024 to 2031.
North America currently dominates the CCS market owing to favorable government initiatives and the presence of major oil & gas and power companies involved in CCS pilot projects across the region especially in the US and Canada. Key government policies like the 45Q tax credit in the US provide incentives for investment in CCS projects. The European region is also expanding investments in CCS technology to meet climate goals and enable continued use of fossil fuels in the energy mix. Countries like Norway, UK and Netherlands have initiated several CCS projects and are likely to contribute significantly to future market growth. Asia Pacific region is projected to be the fastest growing market for carbon capture and storage during the forecast period. Rising energy demand across industrializing economies like China and India is boosting investments in CCS-equipped fossil fuel power stations to balance economic development priorities with emissions reduction targets. Government initiatives in countries like Australia, Japan and South Korea to commercialize CCS technology will support market growth. China, the world's largest carbon emitter announced a target to become carbon neutral by 2060 which will drive large-scale adoption of emission abatement technologies including CCS going forward.
Key players related content comprises: 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).
Explore more information on this topic, Please visit -
https://www.newswirestats.com/carbon-capture-and-storage-market-growth-and-forecasts-analysis/
