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The global carbon capture and sequestration market size was valued at USD 1.75 billion in 2019 and is projected to reach USD 6.13 billion by 2027, exhibiting a CAGR of 19.2% during the forecast period.
Carbon capture and sequestration (CCS) technology involves trapping, transportation, and storage of the harmful carbon dioxide emissions from various sources. The capture of CO2 is usually performed through numerous procedures such as pre-combustion, oxy-fuel, post-combustion, industrial separation, or an amalgamation of various industrial processes. The seized CO2 is transferred by multiple modes such as pipelines and tankers for storage in deep aquifers or reservoirs beneath the earth’s surface.
COVID-19: Halting of Operations & Decline in Economy to Affect Growth
The global pandemic has emerged to be the most significant health problem, stopping nearly all the operations across industries. The coronavirus infection has obstructed almost all the economies and is enforcing many countries to go under lockdowns to contain the outbreak. While this issue is likely to be resolved within a very short time, climate degradation is something that needs to be tackled in a longer-term with stern actions.
However, the key problem that is faced by industry professionals is the requirement of large capital expenditures (CAPEX) to set up new carbon capture plants. The halting of operations and slowdown in economies with negligible international trade has resulted in liquidity deficit among players. Nevertheless, the financial booster plans introduced by various administrations to support the economic revitalization, coupled with a positive outlook towards industrial decarbonization will complement the stability in the CCS market.
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Collaborations among Industry Participants for Large Scale Projects to Propel Market Growth
Various market players are concentrating on joining forces to complete large scale CCS facilities and commercialize the technology. The partnerships are also focused on helping to gather the significant CAPEX required for new projects, coupled with the easy-rolling out of regional contracts to support the construction & operation of projects.
Encouraging Financial Plans By Governments and Organizations to Add to Industry Pace
Numerous administrations are substantially investing in developing new alternatives to seize carbon from different sources efficiently. Besides, the organizations are also focusing on gathering insights regarding the new storage and utilization locations for sequestered gases. They are also developing numerous carbon capture technologies.
Stringent Policies & Positive Outlook to Mitigate Carbon Footprint will Propel Technology Demand
Different governments have introduced strict action plans to stabilize climate change and diminish the overall carbon emissions in near and long term periods. Stern activities to monitor and curb the greenhouse gases (GHG) emissions from power generation facilities are set to complement the market size further. Consequently, in February 2020, the International Energy Agency (IEA) published that the global energy-related CO2 emissions increased to 33.3 gigatonnes (Gt) in 2019 from 32.2 Gt in 2015, showcasing over 3.4% increase in just five years.
Growing Demand For CO2 Enhanced Oil Recovery (EOR) Projects to Complement Industry Landscape
Enhanced oil recovery (EOR) is a tertiary oil recovery method that is deployed to recover over 65% of the total recoverable oil in place not produced through primary and secondary phases. Rising measures to cut the maximum levels of carbon dioxide generated from fossil fuel production and utilization is set to boost the carbon capture and storage market. As per IEA, in 2017, the total number of EOR projects around the globe stood at about 374, of which, around 44.4% utilized CO2.
High Initial Cost & Feasibility Associated With New Projects May Hinder Market Growth
The requirement of significant capital cost to set up large-scale CCS systems may obstruct the carbon capture and sequestration market growth. Additionally, the projects also need substantial annual operational expenses to run the systems at optimum levels. Furthermore, the achievability of high capacity plants seizing multi MTPA of CO2 also poses a limitation to the technology adoption across various countries.
Dedicated Storage Segment to Observe Considerable Growth Backed by High Storage Potential
Based on end use, the global market for carbon capture and sequestration can be majorly bifurcated into enhanced oil recovery (EOR) and dedicated storage. The dedicated storage segment is set to exhibit significant progress owing to the high storage potential across deep geological formations in onshore and offshore locations. Furthermore, the growing demand for fossil fuels across various residential, commercial, and industrial operations coupled with the ample presence of low-pressure aged oil & gas reserves is set to favor the outlook of the EOR segment.
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Natural Gas Processing Was Estimated To Dominate 2019 Stoked by Rising Oil & Gas Production
Based on capture source, the industry can be primarily divided into chemicals, natural gas processing, power generation, fertilizer production, and others. The natural gas processing segment was estimated to account for the major Carbon Capture and Sequestration market share in terms of volume during the historical years. An increasing oil & gas production is set to lead to the setup of new processing facilities aiding to the growth of this segment. Additionally, the growing energy demand, along with the presence of high capacity production plants, is projected to propel the power generation segment landscape.
The exponentially increasing needs for different chemicals to fabricate various raw materials and end use products for a wide range of industries is likely to augment the chemicals source segment. Furthermore, the fertilizer production segment is also set to grow substantially over the forecast time frame due to the increasing use of high GHG emitting products such as ammonia & urea, thereby generating the needs for handling excessive CO2 content.
North America Carbon Capture and Sequestration Market Size, 2019 (USD Billion)
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The market has been analyzed across five key regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. North America is likely to lead the global industry owing to the significant investments across research & development activities along with the existence of different high capacity carbon capture and sequestration plants. Additionally, funding initiatives from the regional governments have also favored regional expansion.
The presence of various large-scale projects in early development and feasibility study stages across countries such as Australia and China is projected to surge the industry size in Asia Pacific. Furthermore, the presence of high volume storage locations, primarily across subsea oil & gas reservoirs with EOR operations is set to favor the regional landscape.
The availability of old bulk oil & gas reservoirs coupled with the huge untapped potential to boost hydrocarbon production from enhanced oil recovery methods is likely to favor the Middle East & Africa CCS market. Furthermore, the announcement of new projects, low injection well drilling costs, and high storage capabilities in huge underground formations are some of the other key factors propelling the regional outlook.
Chevron is Focused on Increasing Investments in New Ventures along with Constructing New Facilities
The industry has observed many small and large products & services providers serve carbon capture methods and storage technology. Various companies have depicted significant interests for entering into collaboration agreements to outline the competitive landscape. Chevron is increasingly concentrating on setting up new CCS stations in addition to its partnerships with various other industry players to enhance its presence across the different stages of operations. For instance, in February 2020, Chevron announced to partner up with Wave and Marubeni Corp by investing USD 16 million in Carbon Clean Solutions, situated in the U.K. The venture targets to develop advanced Carbon capture and sequestration systems for easy integration in remote locations at a lower price by 2021.
An Infographic Representation of Carbon Capture and Sequestration Market
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The carbon capture and sequestration market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, technology types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the industry growth over the recent years, such as the types of carbon capture machines.
Volume (MTPA) and Value (USD Billion)
By End Use
By Capture Source
Fortune Business Insights says that the global carbon capture and sequestration market size was USD 1.75 billion in 2019 and is projected to reach USD 6.13 billion by 2027.
In 2019, the North America market value stood at USD 1.30 billion.
Registering a CAGR of 19.2%, the market will exhibit an exponential growth over the forecast period (2020-2027).
The enhanced oil recovery (EOR) segment is anticipated to hold a significant share and dominate this market during the forecast period.
Stringent GHG emission reduction norms and the increasing focus on decarbonization are the major factors driving the growth of the market.
Equinor, ExxonMobil, Flour Corporation, and NRG Energy are the key participants operating in the global market.
North America dominated the market in terms of share in 2019.
The rapidly growing demand for hydrocarbon to expand the industrial infrastructures is projected to propel the adoption of this technology globally.
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