The high capital cost involved is one of the major factors restraining the growth of the global carbon dioxide utilization market. Setting up infrastructure for carbon dioxide utilization requires huge initial investments. This includes capital expenditures on equipment needed for carbon capture from point sources, its transportation through pipelines, and subsequent conversion into various downstream products. The capital intensity is even higher for technologies in nascent stages of development and commercialization. Significant investments are needed in research and development to lower production costs and enable scaling up of emerging CO2 utilization pathways such as conversion into fuels, chemicals, cement, and carbonated drinks. The high degree of technological and commercial risks associated with these early-stage technologies discourages large capital investments by private entities without adequate government funding support. Achieving economies of scale required to drive down costs further depends on building sufficient capacity over time, which slows down market expansion in the initial years.
Market Opportunity - Utilization of co2 in enhanced oil recovery
Enhanced oil recovery using carbon dioxide has the potential to be a major opportunity area in the global carbon dioxide utilization market. CO2 has been used successfully for decades to extract additional oil from mature oil fields. When injected underground, CO2 increases the mobility of oil and allows more of it to be recovered. This process can potentially extract billions of additional barrels of oil globally that would otherwise remain in the reservoirs. With new investments and advancements in carbon capture, utilization and storage technologies, the volumes of anthropogenic CO2 available for enhanced oil recovery are expected to rise substantially in the coming years.
Carbon Dioxide Utilization Market Report Snapshots
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