The carbon capture and sequestration market involves technologies that capture and store carbon dioxide emissions from large point sources like power plants and industrial plants underground, with the aim of preventing its release into the atmosphere. Carbon capture and storage (CCS) technology captures over 90% of the carbon dioxide emissions produced from the use of fossil fuels in electricity generation and industrial processes, preventing the carbon dioxide from entering the atmosphere. The captured carbon dioxide is compressed and transported to storage locations, where it is injected deep underground into geological formations for long-term isolation from the atmosphere. Carbon Capture and Sequestration Market Trends provides CO2 reductions that can help meet emission reduction targets in a cost-effective way and enables the continuing use of fossil fuels for energy production.

The Global Carbon Capture and Sequestration Market is estimated to be valued at US$5.37 Billion in 2024 and is expected to exhibit a CAGR of 15.1% over the forecast period 2024-2030.

Key Takeaways

Key players operating in the carbon capture and sequestration market are Shell, Chevron, Occidental Petroleum, Fluor Corporation, Linde, Aker Solutions, ExxonMobil, and Equinor. Carbon capture technology enables utilization of stranded natural gas resources and reduces costs associated with enhanced oil recovery. Technological advancements like oxy-fuel combustion process allows for more efficient carbon capture from flue gases. Stringent regulations regarding carbon emission from coal-fired power plants and industrial facilities are driving the demand for CCS technologies. Countries like Canada, Norway, and UK are investing heavily in deployment of integrated CCS projects to meet emission goals. Development of membrane separation techniques and chemical absorption processes have improved carbon capture rates from flue gases.

Market Trends

Rising deployment of natural gas combined cycle power plants: Natural gas combined cycle power plants equipped with CCS can facilitate transition to low carbon economy. Countries are investing in developing gas turbine technologies compatible with carbon capture.

Focus on utilization of captured CO2: Technologies are being developed to utilize captured carbon in enhanced oil recovery as well as production of chemicals, plastics and fuels through catalytic and biological conversion routes.

Market Opportunities

Carbon capture from industrial facilities: Industries like cement, steel and fertilizers present significant opportunities for deployment of carbon capture due to their process-based emissions.

CCS hubs and shared infrastructure: Developing common CO2 transport and storage infrastructure can help reduce costs for individual CCS projects and encourage higher deployment.

Impact of COVID-19 on Carbon Capture and Sequestration Market Growth

The outbreak of COVID-19 pandemic had a major impact on the carbon capture and sequestration market globally. Governments imposed lockdowns and restrictions to curb the spread of virus which halted operations and construction activities. Project delays, supply chain disruptions and decline in investments affected the market growth negatively in 2020. However, with resumption of economic activities post lockdowns, the market is recovering gradually.

The pandemic has highlighted the importance of moving towards greener technologies and alternatives to minimize carbon emissions. Countries are investing more resources to attain carbon neutrality goals through carbon capture, utilization and storage projects. For instance, the European Union is prioritizing CCUS projects as part of its COVID-19 recovery plan. Governments in the United States and Canada are providing funding to resume development of large-scale CCUS projects which were delayed due to the pandemic. Rising environmental consciousness and need to reduce reliance on fossil fuels are driving support for CCUS technologies.

Digital innovations can help speed up project deployment in the post pandemic world. Use of drones, artificial intelligence, virtual reality etc. can facilitate remote monitoring, reduce on-site workforce requirements and support faster planning and installation of CCUS infrastructure. Overall, while COVID-19 had short term impact, the long term outlook of carbon capture and sequestration market remains positive with increasing focus on building sustainable infrastructure.

Geographical Regions with High Carbon Capture and Sequestration Market Value

North America currently accounts for the largest share of the global CCUS market in terms of value. Majority of both operational and announced CCUS facilities are based in the United States. The region is an early adopter with several projects in different stages of development across oil & gas and power generation industries.

Europe is another major revenue generator, especially countries like UK, Norway and Netherlands. Presence of carbon dioxide storage sites, supportive policies and focus on emission reductions are driving growth. Asia Pacific is emerging as the fastest growing regional market with China ramping up investments to utilize CCUS for enhanced oil recovery and coal-fired power emissions control.

Fastest Growing Regional Market for Carbon Capture and Sequestration

Asia Pacific region offers immense growth potential for carbon capture and sequestration market over the coming years. Rapid industrialization and economic expansion have led to considerable growth in CO2 emissions from several industries in the region. Countries like China and India are hugely dependent on coal for energy requirements, making them lucrative CCUS markets.

China has outlined ambitious CCUS development plans to deploy over 50 large demonstration projects by 2030. India also aims to Commercialize CCUS to support its climate commitments. Presence of crude oil reserves and rising EOR activities provide impetus for CCUS adoption. With strong government backing and investment in clean technologies, Asia Pacific is anticipated to surpass other regionsinterms of CCUS installations and overall market revenues globally by 2030.

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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)