The global carbon capture and storage market size was valued at USD 4.96 billion in 2019 and is anticipated to grow at a CAGR of 11.5% during the forecast period. Carbon capture and storage can be defined as the process that traps the carbon dioxide gas at the emission source, and then transporting it to a storage location in turn isolating it. The storage location in most of the cases is underground. The process guarantees greener energy by capturing the excess carbon dioxide (CO2). They can be employed not only on coal-based sources but also on natural gas and other industrial sources. CCS is an integrated technology with each process complementing the other one. It is a well proven and established technology and can achieve an efficiency of as high as 90% when deployed. It can capture CO2 fossil fuel emissions thus preventing the harmful gas from escaping to the atmosphere.
Increasing energy demand which is on the major reason for the usage of fossil fuel is considered as one of the major sources of carbon emission. However, CCS is the most practical technology currently available to alleviate greenhouse gas emissions from large-scale fossil fuel usage. This technology has the potential to bridge the gap for the next few decades, cutting emissions until we can shift to a low carbon economy globally. CCS is a key cost-effective option for reducing CO2 emissions in large energy-intensive industries. In fact, much of the promising short-term potential for CCS globally lies not in the power sector but in industrial activities that currently vent highly pure streams of CO2. Due to these factors, the CCS market is estimated to grow significantly during the forecast period. However, currently this technology is still not adopted in many countries owing to various regulatory issues and for its high initial and operational cost. Different countries have framed their own regulations and currently there is still an absence of single and mutually framed global regulatory framework. In Australia, Canada and the United States, for example, regulatory competence is shared between national entities and state or provincial bodies, consistent with the governmental structures in place. The absence of stringent regulatory policies globally for reduction of carbon emissions is anticipated to restrict the industry growth over the forecast period.
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The business players have been concentrating on growing new and increasingly effective CCS innovations and procedure. For instance, the post carbon capture technology (PostCap) which is based on an Amino Acid Salt solution as solvent is applicable to coal and natural gas fired power plants. This technology can also be used in existing power plants which are of small, medium or large scale. Moreover, with the developing industrialization globally, the production of materials has also been increasing. Hence, to control the increasing carbon emission from these industries huge number of CCS plants need to be set up. These factors are expected to drive the CCS market over the forecast period.
With the technological advancements, offshore E&P activities are increasing which in turn is widening the scope for EOR techniques in this segment. Maturing and depleting oil reserves is estimated to fuel EOR market for both onshore and offshore wells. Gas injection EOR techniques are also gaining market share globally owing to technology innovations and high recovery rates of these technologies. It is expected to project highest growth rates over the forecast period compared to the other EOR techniques, on account of its eco-friendly nature of reducing carbon emissions by utilizing it for crude oil extraction. The rising application of EOR activities on account of increasing number of matured oil and gas fields, the demand of carbon dioxide for utilization in these activities is also increasing. Hence, this growing CO2 demand for EOR activities is expected to drive the CCS industry over the forecast period.
The market is primarily segmented on the basis of capture type, application, and geographic region.
By Capture Type
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Based on capture type, the global carbon capture and storage market is segmented into pre-combustion, industrial separation, oxyfuel-combustion, and post-combustion. In 2019, pre-combustion segment accounted for the largest market share. The segment is predicted to witness decline in demand based on increasing exploration and production of oil and gas from offshore reservoirs over the forecast period. However, post combustion segment is projected to witness a significant growth during the forecast period. Increased energy generation, newly developed advanced amine systems and heat integration systems are expected to be the main factors driving its demand over the forecast period.
On the basis of application, the global carbon capture and storage market is segmented into enhanced oil recovery, industrial, agriculture, and others. In 2019, EOR segment accounted for the highest share of the market. Fluctuating crude oil prices are also expected to drive EOR market over the next foreseeable future. Increasing need to extract hydrocarbons from unconventional and low permeability reserves such as tight sands and carbonate traps is expected to have a positive influence on the global EOR market growth. The industrial segment in the second highest in the application sector.
North America dominated the market mainly due to the presence of major market players. North America and the European region are accelerating their drive to combat climate change with a sharp focus on the power sector, the main source of around 40% of carbon dioxide emissions. Stringent regulatory framework for cleaner environment coupled with increasing need of carbon dioxide in enhanced oil recovery processes owing to increasing number of matured oilfields are expected to be the major factors driving the industry penetration in North American region. Ongoing investments toward research and development coupled with need to introduce economical carbon capture technologies will stimulate the U.S CCS industry. Furthermore, European companies are majorly focusing towards R&D and improvising EOR techniques. Technological advancements coupled with the introduction of several modern techniques, which utilize CO2 released in the production stage, are estimated to have immense growth prospects in near future.
However, Asia Pacific is expected to observe the fastest growth during the forecast period. Rapid industrialization coupled with expanding oil & gas industry in Asia Pacific countries is expected to drive regional EOR market. This is further supported by favorable initiatives by governments of China and India to facilitate FDI and infrastructural development in oil & gas industry in the respective nations. Rapid deployment of gas and coal fired power plants in order to suffice the increasing demand for energy will propel the Asia Pacific market growth. Rising awareness regarding emission control coupled with ongoing industrial and commercial expansion will augment the business landscape.
Companies are expanding their presence across various geographies and entering new markets in developing regions to expand their customer base and strengthen presence in the market. The companies are also introducing new innovative products in the market to cater to the growing consumer demands. The key leading players in the market include Shell CANSOLV, AkerSolutions, Statoil, Dakota Gasification Company, Linde, Siemens AG, Fluor, Sulzer, Mitsubishi Heavy Industries, Maersk Oil, Japan CCS Co., Ltd., and HTC CO2 Systems Corp. among others.