Global Carbon Capture and Storage (CCS) Market Holds Substantial Opportunity
The global carbon capture and storage (CCS) market is poised for significant growth in the coming years. With increasing concerns about greenhouse gas emissions and their impact on the environment, CCS technology offers a promising solution for mitigating carbon dioxide (CO2) emissions. This article explores the current state of the global CCS market, its growth potential, key drivers and restraints, and the major players in the industry.
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1. The Market Size and Growth of the Global CCS Market
The global carbon capture and storage market was valued at US$4.17 Bn in 2020 and is projected to reach US$9.42 Bn by 2026, with a compound annual growth rate (CAGR) of 15.7% during the forecast period. The market is expected to witness a significant increase in volume, with 101 million metric tons per annum (MTPA) of CO2 captured and stored from 2020 to 2026.
2. The Environmental Impact of Carbon Dioxide Emissions
Carbon dioxide (CO2) is a major greenhouse gas that contributes to global warming and climate change. The majority of CO2 emissions come from fossil fuel-based power plants and industrial sources, accounting for more than 60% of global greenhouse gas emissions. These emissions have adverse effects on the environment and human health, necessitating urgent action to reduce them.
3. The Potential of CCS Technology in Mitigating CO2 Emissions
CCS technology has the capability to capture more than 90% of CO2 emissions produced from fossil fuel use in electricity generation and industrial processes. By capturing and storing CO2, this technology
prevents it from entering the atmosphere and exacerbating the greenhouse effect. In 2019, approximately 35 million metric tons of CO2 were captured through CCS, indicating the immense potential for large-scale deployment of this technology worldwide.
4. Government Support and Climate Change Agreements as Boosters to the CCS Market
Government support, along with international climate change agreements such as the Paris Climate Agreement and the Kyoto Protocol, plays a crucial role in driving the adoption of CCS technology. These agreements aim to limit global warming and promote sustainable development. Industries with high carbon emissions, such as iron, steel, cement, and chemicals, benefit from CCS technology as it enables them to reduce their carbon footprint effectively.
5. Challenges and Restraints in the Adoption of CCS Technology
While CCS technology holds immense promise, several challenges hinder its widespread adoption. The lack of direct financial incentives for companies to invest in CCS technology remains a significant restraint. The absence of a regulated market structure and pricing mechanisms for carbon emissions discourages companies from implementing CCS in their facilities. However, post-COVID-19, increased funding for CCS projects is expected, leading to more commercialization of CCS technology by 2030.
6. Oil & Gas Companies as Key End Users of CCS Technology
In 2020, enhanced oil recovery (EOR) accounted for the largest share (61%) of the global CCS market. Oil and gas companies utilize captured CO2 for the EOR process and blue hydrogen production. While some argue that EOR may not provide permanent storage, dedicated geological storage options are also available, enabling long-term storage of captured CO2. The oil and gas industry remains a significant end user of CCS technology.
7. Europe as a Prime Market for Carbon Capture and Storage
Europe leads in the deployment of CCS technology, with several commercial-scale projects in operation and under development. The European Union's Innovation Fund, with a budget of US$11.32 Bn, provides substantial funding for CCS projects across the region. Additionally, countries in the Asia-Pacific region, such as China, Australia, and South Korea, have also begun implementing their CCS strategies as part of their long-term climate change commitments.
8. The Global Competitive Landscape of the CCS Market
Key players in the global carbon capture and storage market include Siemens AG, GE, Babcock & Wilcox Enterprises, Inc., Mitsubishi Heavy Industrial Ltd., Air Liquid, Air Products & Chemical Inc., Linde AG, Royal Dutch Shell plc, Global Thermostat, Climeworks, Total SE, Carbon Engineering Ltd., and CO2 Solutions. These companies are actively involved in the development and commercialization of CCS technologies.
9. Key Players in the CCS Market
• Siemens AG
• GE
• Babcock & Wilcox Enterprises, Inc.
• Mitsubishi Heavy Industrial Ltd.
• Air Liquid
• Air Products & Chemical Inc.
• Linde AG
• Royal Dutch Shell plc
• Global Thermostat
• Climeworks
• Total SE
• Carbon Engineering Ltd.
• CO2 Solutions
10. Recent Developments and Projects in the CCS Industry
In November 2021, BASF and Air Liquide secured EU funding for a carbon capture project. This initiative is one of seven large-scale decarbonization efforts supported by $1.2 billion in government grants. In June 2021, Zeeland Refinery partnered with Air Liquide for a carbon capture solution, wherein Air Liquide Engineering & Construction will provide Cryocap FG technology.
11.
Conclusion
The global carbon capture and storage market presents substantial opportunities for mitigating CO2 emissions and combating climate change. With government support, international climate change agreements, and advancements in CCS technology, the market is poised for significant growth. However, challenges such as the lack of direct financial incentives and market regulations need to be addressed to ensure widespread adoption of CCS technology.
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