Carbon Capture, Utilisation, and Storage (CCUS): Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2019-2029

Market Definition

The process of absorbing carbon dioxide emissions and either utilizing them to create things like construction materials or permanently storing them hundreds of feet below the surface is known as carbon capture, utilisation, and storage (CCUS). In the decades to come, the global trend towards the decarbonization of sectors will greatly depend on Carbon Capture, Utilisation, and Storage (CCUS). The CCUS market will offer exciting growth prospects across regions and industrial sectors until 2030 as the energy revolution quickens and imminent deadlines for carbon-neutrality approach.

Market Insights

CCUS is recognized as an important technology to produce low-carbon hydrogen. Since hydrogen is thought of as the chemical equivalent of energy, it has the potential to decarbonize a number of industries and building types, including transportation, heavy industry, and power. Currently, coal or natural gas account for 98% of the hydrogen generated, emitting 800 MtCO2 annually. Grey hydrogen is the name given to the resulting product. Given that the cost of manufacturing blue hydrogen by CCUS is half that of producing green hydrogen using renewable energy, its addition could offer a low-cost and low-carbon alternative. By 2050, there will be a 530 MTPA yearly demand for low-emission hydrogen, with a 6 billion tonne reduction in emissions. However long-term benefits will be possible only if hydrogen is produced using near-zero-emission processes, including using CCUS to create blue hydrogen.

Between 2022 and 2030, the industry is anticipated to experience exponential growth at a CAGR of 55.8%. A recovery in capacity addition is anticipated in 2021 after it fell off in 2020 as a result of COVID-19, since numerous projects are anticipated to begin operating. The carbon capture industry earned $0.15 billion in sales in 2020, and it’s anticipated that this amount would rise to $34.98 billion in 2030. In the Americas, growth will primarily come from the US, while in Europe, it will come from the UK, Norway, the Netherlands, and Ireland. The market is anticipated to expand modestly between 2021 and 2025, with a narrow focus on the advancement of ongoing projects. Growth is anticipated to be exponential after 2025, with investments being boosted by optimistic attitudes among private participants.

Americas is home of 20 commercial operational facilities have a combined total capture capacity of 30 MTPA. Most of these projects are bioenergy CCS, Natural Gas (NG) processing, and fertilizer and chemical production. The Americas market will be mainly driven by the US, Canada, and Brazil. Despite the pandemic there has been sustained growth in the development of CCUS projects, both from governments and businesses across the Americas. The US Department of Energy (DOE) is another driver for the development of CCUS projects. The US DOE has co-funded $270 million for Front-end Engineering Design (FEED) studies, for projects to capture CO2 from industrial and natural gas sources.

Market Dynamics: Drivers

Role of CCUS in Decarbonizing

Targeting emissions from all energy-intensive sectors, particularly difficult-to-abate businesses like cement, iron and steel, fertilizers, and chemicals, is crucial for achieving net-zero goals. The use of renewable heat energy or process electrification as fossil fuel alternatives is still very expensive in heavy sectors, which are responsible for 20% of world emissions. The demand from the hard-to-abate industries will be a significant market driver in the near future, and CCUS will be a crucial decarbonization technology for these sectors. Cement production, for instance, generates significant process emissions that are equivalent to over 8% of all world emissions, and since there aren’t many other ways to make cement, the market has a high potential for CCUS adoption. Before selling or compressing natural gas to create liquefied natural gas (LNG), up to 90% of the CO2 that is present during natural gas processing must be eliminated. Although most of this CO2 is currently released to the atmosphere, it can be recovered and used for enhanced oil recovery (EOR) or reinjection into geological formations.

Market Dynamics: Challenges

Long-term CO2 Storage Liability

Leakage risk from a carbon dioxide storage facility is extremely low, yet it is not zero. Storage operators are accountable for any future leaks if there are no rules and restrictions in place. Private sector investors will be exposed to long-term financial risks with such unlimited and everlasting responsibility, which might be a huge turnoff for certain project investors. This danger can be decreased with support from the government and a strong policy framework, which will aid in earning the trust of private participants. However, it will continue to be a restriction for the duration of the study’s evaluation term.

Market Segmentation

• Based on Type, the Global CCUS market is segmented into
  • Carbon Capture
  • Carbon Storage
  • Carbon Utilization
• Based on End User, the Global CCUS market is segmented into
  • Hydrogen Production
  • Bioenergy CCS
  • NGCC CCS
  • Coal PC CCS
  • Cement
  • Iron and Steel
  • CCUS Clusters
  • IGCC
  • NG Processing
  • Fertilizers and Chemical
  • DACCS
  • Waste to Energy
  • Refinery
• Based on Geography, the Global CCUS market is segmented into
  • Asia-Pacific
  • North America
  • Europe
  • Latin America
  • Middle East & Africa
• All market revenue has been given in US Dollar and volume in tons per annum.

Historical Year: 2019-2020

Base Year: 2021

Estimated: 2022

Forecast- 2023-2029

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global CCUS Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global CCUS Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global CCUS Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global CCUS Market study?