Global Carbon Capture and Storage (CCS) Market Outlook to 2030

Global Carbon Capture and Storage (CCS) Market Overview

• The global carbon capture and storage (CCS) is valued at USD 6.24 billion in 2023. This market is driven by increasing awareness of environmental sustainability and strict regulations surrounding carbon emissions. With growing investments in clean energy and a focus on reducing greenhouse gas emissions, CCS technology has become a key solution for industries that contribute heavily to carbon pollution, such as energy, manufacturing, and chemicals. The demand is propelled by rising industrial activities that necessitate the deployment of effective carbon capture mechanisms to meet international climate goals.

• Some of the major players in the global CCS market in 2023 include ExxonMobil, Shell, Chevron Corporation, TotalEnergies, and Equinor. These companies are leading the market with significant investments in developing and expanding CCS infrastructure. ExxonMobil, for instance, has committed to capturing 9 million tons of CO2 annually by 2025, while Shells Quest project has already sequestered over 6 million tons of CO2 since its inception. These players dominate the market through their large-scale projects and advanced CCS technologies.
• In 2023, ExxonMobil completed an acquisition of Denbury Inc. in an all-stock transaction valued at $4.9 billion. This acquisition significantly enhances ExxonMobil's carbon capture and sequestration (CCS) capabilities, as it now controls the largest owned and operated CO pipeline network in the United States, which includes over 1,300 miles of pipelines and access to more than 15 onshore CO storage sites.
• Cities like Houston, Texas; Rotterdam, Netherlands; and Melbourne, Australia, dominate the carbon capture and storage (CCS) market due to their well-developed industrial infrastructure and strategic location. Houston, a major hub for energy operations, benefits from extensive pipeline networks and large-scale industrial emissions sources. Rotterdam, with its deep-water port and industrial activities, leads Europes CCS projects, while Melbourne plays a key role in Australia's CCS initiatives due to its robust energy sector and accessible CO2 storage sites.

Global Carbon Capture and Storage (CCS) Market Segmentation

By Technology: The global CCS market is segmented by technology into pre-combustion capture, post-combustion capture, and oxy-fuel combustion. In 2023, pre-combustion capture has been noted to dominate the CCS market due to its effectiveness in capturing large volumes of CO2 at lower costs compared to post-combustion methods. This cost-effectiveness and efficiency make it a preferred choice for power plants and industrial applications.

By Region: The global CCS market is segmented into North America, Europe, Asia-Pacific (APAC), Latin America, and the Middle East & Africa (MEA). North America dominates the market in 2023, driven by favorable government policies, significant investments, and the presence of major players such as ExxonMobil and Chevron. The U.S. and Canada lead the CCS space with extensive project development and large-scale storage capacities. Government initiatives, like the U.S. 45Q carbon capture credits, have further accelerated growth in this region.

By End-Use Industry: The global CCS market is segmented by end-use industry into power generation, oil and gas, and chemicals. In 2023, power generation holds the dominant position, driven by the sector's significant carbon emissions and the urgent need for emission reduction solutions. Coal and natural gas-fired power plants are increasingly adopting CCS technologies to comply with environmental regulations. The electricity sector is a major contributor to greenhouse gas emissions, accounting for about one-third of total emissions in the U.S.

Global Carbon Capture and Storage (CCS) Market Competitive Landscape

• ExxonMobil: In 2023, ExxonMobil expanded its CCS capacity through the acquisition of Denburys CO2 infrastructure, significantly boosting its ability to capture and store carbon across North America. The companys goal of reducing carbon emissions by 9 million tons annually positions it as a leader in the CCS market. Additionally, ExxonMobil is investing heavily in research to further improve the efficiency of carbon capture technologies and reduce costs.
• Chevron: Chevron has been actively investing in CCS technology, particularly through its Gorgon Gas Project in Australia. As of June 2024, the project has injected millions of tonnes of CO2. However, the project has underperformed its initial targets, capturing and injecting less CO2 than originally planned during its first five years of operation. Chevron is now working on strategies to improve the efficiency and output of the project to meet its long-term goals.

Global Carbon Capture and Storage (CCS) Market Analysis

Global Carbon Capture and Storage (CCS) Market Growth Drivers

• Rising Demand from the Oil and Gas Sector: The oil and gas industry is increasingly adopting CCS technologies, particularly for enhanced oil recovery (EOR) processes. The sector relies on CCS to optimize production while reducing emissions. Demand for CO2 in EOR applications is expected to grow, with the oil and gas sector becoming a major contributor to the overall CCS market, driven by the need for more sustainable production practices.
• Rising Demand from High-Emission Sectors: High-emission industries like power generation, oil and gas, and chemicals are adopting CCS technologies to comply with environmental regulations. Fossil fuel-based power plants are significant emitters, pushing companies to invest in CCS. In 2023, Shell announced a $1.4 billion investment in global CCS projects, focusing on the energy sector to reduce emissions and meet sustainability targets.
• Increased Investment in Energy Transition: The global transition to cleaner energy sources is leading to significant investments in CCS technologies, positioning it as a crucial tool for reducing carbon emissions. These investments highlight the growing recognition of CCS in achieving decarbonization goals. Increased capital is expected to drive research, development, and deployment of CCS technologies. This will accelerate the growth of the market and support the advancement of more efficient systems for carbon capture and storage.

Global Carbon Capture and Storage (CCS) Market Challenges

• Limited Storage Infrastructure: The availability of suitable geological formations for storing captured CO2 is another critical challenge. According to data from the U.S. Geological Survey, North America holds an estimated 500 billion tons of potential CO2 storage capacity. developing this infrastructure is capital-intensive and time-consuming, requiring substantial investment in pipelines and storage sites. The lack of developed infrastructure for transportation and long-term storage of CO2 in several regions, particularly in Asia-Pacific and Africa, is limiting the growth potential of CCS technologies.
• Regulatory and Policy Uncertainties: While many governments have committed to net-zero emission targets, inconsistent and evolving regulatory frameworks present a significant barrier. For example, changes in the U.S. federal governments approach to environmental policies could impact the funding and development of CCS projects. In Europe, although the European Commission is pushing for a unified carbon pricing system, disparities in national policies have led to unequal adoption rates across member countries. This regulatory uncertainty makes it difficult for businesses to invest in long-term CCS projects confidently.

Global Carbon Capture and Storage (CCS) Market Government Initiatives

• U.S. Department of Energys Carbon Capture Program: The DOE announced a $2.5 billion funding initiative for carbon capture projects, not $3.5 billion as stated. This funding is part of the Bipartisan Infrastructure Law and is aimed at advancing carbon capture, utilization, and storage (CCUS) technologies, particularly in power generation and industrial sectors
• European Unions Innovation Fund for CCS: Horizon Europe is indeed a key funding program for research and innovation in the EU, which includes support for CCS technologies. It aims to foster innovation in carbon storage technologies, especially in industries like chemicals, steel, and cement, which are significant contributors to carbon emissions. The program is part of broader EU efforts to tackle climate change and enhance energy resilience by supporting the development and deployment of innovative technologies

Global Carbon Capture and Storage (CCS) Market Outlook

The global carbon capture and storage (CCS) market is poised for significant growth by 2028, driven by a combination of government initiatives, stricter environmental regulations, and the increasing demand for sustainable industrial practices. As countries push toward achieving net-zero carbon emissions targets, CCS will play a vital role in reducing CO2 emissions across energy-intensive sectors.

Future Trends:

• Expansion of Large-Scale Carbon Storage Facilities: By 2028, large-scale carbon storage facilities are expected to increase significantly, particularly in North America and Europe, driven by government investments and stricter carbon pricing policies. Countries such as the U.S., Canada, and Norway are anticipated to lead this growth. These projects will rely on robust infrastructure, including CO2 pipelines and dedicated storage sites, as governments work to reduce industrial emissions and meet climate goals by 2028.
• Adoption of CCS in Emerging Markets: Emerging markets in Asia-Pacific and Latin America are projected to adopt CCS technologies at an accelerated pace by 2028. Countries such as China and India are likely to invest heavily in CCS to mitigate the environmental impact of their rapidly growing industrial sectors. China, for instance, is expected to deploy CCS in its coal-fired power plants to reduce emissions, contributing significantly to the markets expansion in the APAC region.