Global carbon capture and storage market set for significant growth
The carbon capture and storage market is projected to grow by USD 11.95 billion from 2024 to 2028, driven by the need to reduce greenhouse gas emissions and the increasing reliance on fossil fuels.
The global carbon capture and storage (CCS) market is poised for significant growth, with an estimated increase of USD 11.95 billion projected for the period from 2024 to 2028. This assessment originates from a recent report by Technavio, highlighting a remarkable compound annual growth rate (CAGR) of nearly 24.93% during this timeframe. The expansion of the CCS market is primarily driven by the increasing reliance on fossil fuels for electricity generation, particularly within developing regions where the concept of carbon capture and storage is becoming more prevalent.
According to the report, several risks associated with carbon capture and storage present challenges that stakeholders must navigate. The market features numerous key players, including well-known industry names such as Air Products and Chemicals Inc., Chevron Corp., Exxon Mobil Corp., and Shell plc, among others. These companies are involved in various aspects of the CCS process, ranging from technology development to application in diverse sectors.
The CCS market encompasses a broad range of technologies and applications, with segments including pre-combustion, post-combustion, and oxy-fuel combustion methods. These technologies are applied across different end-users, particularly in the power generation and oil and gas sectors, as well as manufacturing. Distribution methods for captured carbon also vary, including transportation via pipelines and ships.
The report indicates that several essential factors are fuelling growth in the CCS sector. Chief among them is the urgent need to reduce greenhouse gas emissions emanating from fossil fuel use, as businesses and governments acknowledge the importance of tackling climate change. CCS technology plays a pivotal role by capturing carbon dioxide (CO2) from various sources, notably flue gas and industrial processes, thereby mitigating the adverse effects on the environment.
Additionally, supportive regulations and policies are contributing to the market’s expansion. Financial incentives such as tax benefits and encouragement for reducing carbon footprints are encouraging the adoption of CCS technologies. Stakeholders in industries such as oil and gas, chemical production, cement manufacturing, and renewable energy are increasingly turning to CCS as a solution to meet energy demands while striving to mitigate their environmental impact.
Prominent companies in the CCS landscape, such as Equinor, are taking leading positions by implementing innovative CCS solutions, demonstrating a commitment to fostering a sustainable environment. The importance of long-term CO2 management techniques, including geological and deep ocean storage, underscores the multi-faceted approach required to address carbon emissions effectively.
The growth of the carbon capture and storage market reflects an evolving trend towards integrating advanced technologies and collaborative efforts in the pursuit of climate mitigation. As the landscape continues to change, stakeholders remain focused on developing strategies that facilitate the implementation and commercialisation of carbon capture and storage solutions globally.
Source: Noah Wire Services