CARBON CAPTURE AND STORAGE MARKET ANALYSIS

Market Size and Trends

The carbon capture and storage market is estimated to be valued at US$ 5.98 Bn in 2024 and is expected to reach US$ 13.59 Bn by 2031, growing at a compound annual growth rate (CAGR) of 12.4% from 2024 to 2031.

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The carbon capture and storage market is expected to witness significant growth over the forecast period. This can be primarily attributed to the stringent government regulations regarding emission control and carbon reduction targets globally. The increasing utilization of CCS technology in applications such as enhanced oil recovery is also boosting the market growth. Moreover, rising environmental concerns resulting from high carbon emissions from industries, such as cement, mining, and power generation, is prompting market players to adopt carbon capture technologies and offer solutions. However, high capital investment associated with carbon capture and lack of overall infrastructure is a major restraint challenging the market growth. But increased government investments and subsidies in key markets are expected to counter this effect.

Stringent government regulations and norms

Many governments across the globe have mandated strict regulations and norms to curb carbon emissions and combat climate change. Carbon capture and storage (CCS) is being strongly promoted as an important technology by international organizations to reduce greenhouse gas emissions from large stationary sources like fossil fuel-based power plants and industrial facilities. Several countries have formulated policies that stipulate carbon pricing and cap the amount of emissions that can be released by heavy polluting sectors. Non-compliance would attract hefty financial penalties. This is compelling private companies and power generators to explore CCS as a viable option to curtail their carbon footprint in a cost-effective manner. Regulations in Europe, Aisa Pacific, North America, and other regions require emission sources exceeding certain thresholds to deploy carbon capture. Government subsidies and tax incentives are incentivizing the adoption of CCS projects. Stricter emission norms being drafted for the future would increase the need for end-of-pipe carbon abatement technologies like CCS. The policy push is expected to be a key driver boosting demand for CCS systems from energy intensive industries and utilities over the coming years.

More people are focusing on smoothly shifting from using fossil fuels to renewable energy and other clean options. Rapid decarbonization runs the risk of leaving certain assets stranded and impacting energy security if not planned and executed carefully. CCS provides an important bridging technology that can help lower such transition risks by providing a means to decarbonize existing fossil fuel-based infrastructure in a graduated, cost-effective manner. CCS allows the continued utilization of resources invested in coal and gas-fired power plants and refineries by facilitating their operation in a carbon neutral way. This buys valuable time to scale up renewable sources and implement disruptive emission reduction strategies while maintaining grid stability. CCS also provides solutions for industries like aviation, shipping, and heavy manufacturing, which find it tough to reduce emissions. They heavily depend on liquid fuels and encounter difficulties in quickly switching to low-carbon options.