1. Carbon Capture and Storage (CCS) Market Value and Growth Projections
The global Carbon Capture and Storage (CCS) market is poised for significant growth in the coming years. In 2024, the market value is projected to reach $8,084.7 million USD, with a Compound Annual Growth Rate (CAGR) of 34.35% from 2024 to 2029.
CCS, a critical technology in the fight against climate change, involves the capture of carbon dioxide (CO2) emissions from industrial processes and the burning of fossil fuels in power generation. The captured CO2 is then transported and stored deep underground in geological formations, preventing it from entering the atmosphere and contributing to global warming.
CCS is recognized as one of the essential low-carbon technologies required to achieve societal climate goals at the lowest cost. It has the potential to reduce emissions at scale from sectors like refining, chemicals, cement, and steel sectors, as well as power generation. The United Nations Intergovernmental Panel on Climate Change and the International Energy Agency agree on the importance of CCS in achieving climate goals. As the world shifts towards sustainable energy practices, CCS emerges as a viable solution to mitigate the environmental impact of industries responsible for greenhouse gas emissions.
Figure Global Carbon Capture and Storage (CCS) Market Revenue (M USD) in 2024
2. Drivers and Limitations of CCS Market Growth
The growth of the CCS market is influenced by a multitude of factors. One of the primary drivers is the increasing global focus on reducing carbon emissions to combat climate change. Governments worldwide are implementing policies and incentives to support the development and deployment of CCS technologies. The Paris Agreement’s goal to limit the global average temperature increase has further accelerated the need for CCS solutions.
However, the market faces significant challenges. The high cost of CCS projects, which involve substantial investment in capture, transportation, and storage infrastructure, is a major barrier. Additionally, technical complexities in capturing and storing CO2 without leakage pose risks to the environment and public perception.
The uncertainty in carbon pricing and the lack of a mature carbon market also hinder the commercial viability of CCS projects. Despite these challenges, technological advancements are reducing the energy consumption and cost associated with CCS, making it a more feasible option for emission reduction.
3. Technology Innovation, Mergers, and Acquisitions in the CCS Market
Innovation in CCS technology is a key driver for market growth. Advancements in capture technologies, such as new membrane separation and chemical looping combustion, are reducing energy consumption and cost. These technologies offer more efficient CO2 capture rates, with chemical looping combustion (CLC) technology achieving up to 96% capture rates and minimizing energy loss to as low as 4%.
Corporate mergers and acquisitions are also shaping the CCS landscape. Notable examples include ExxonMobil’s acquisition of Denbury Inc, solidifying its position as a CCS leader by gaining control over a significant CO2 pipeline network. This acquisition highlights the strategic importance of integrating CCS operations into broader energy infrastructure to enhance oil recovery and storage capacity.
4. Carbon Capture and Storage (CCS) Product Types: Market Analysis for 2024
The Carbon Capture and Storage (CCS) market is segmented into various product types, each with distinct definitions and market contributions. In 2024, the global CCS market is estimated to reach a value of $8,084.7 million USD, with different types of CCS technologies playing crucial roles in this expansion.
Pre-combustion Capture
Pre-combustion capture involves the gasification or reforming of fuel before combustion, separating carbon-containing components and converting them into a mixture mainly composed of hydrogen and CO2. The CO2 is then separated, and the remaining hydrogen is used as a clean fuel. In 2024, pre-combustion capture is projected to have a market value of $3,395.7 million USD, holding a significant share of the total CCS market. This technology is known for its high efficiency in capturing CO2 before it is emitted, making it a popular choice for industries seeking to reduce their carbon footprints.
Oxy-fuel Combustion Capture
Oxy-fuel combustion capture technology separates air to produce pure oxygen, which then combines with fuel to create exhaust gases rich in CO2 that can be more easily captured. In 2024, this segment is expected to reach a market value of $300.5 million USD. Although it represents a smaller market share compared to other types, its ability to concentrate CO2 in the flue gas makes it a promising technology for CCS applications, especially in power generation.
Post-combustion Capture
Post-combustion capture directly separates CO2 from the flue gas after combustion. This method is compatible with existing power plants, offering a retrofit solution for carbon emission reduction. The market value for post-combustion capture in 2024 is forecasted to be $3,057.6 million USD. It accounts for the largest market share among the CCS types, highlighting its widespread adoption and the feasibility of implementing this technology in various industrial settings.
Table CCS Market Sizes and Market Shares by Type in 2024
|
Type of CCS |
Market Size in 2024 (M USD) |
Market Share in 2024 (%) |
|---|---|---|
|
Pre-combustion Capture |
3,395.7 |
42.00% |
|
Oxy-fuel Combustion Capture |
300.5 |
3.72% |
|
Post-combustion Capture |
3,057.6 |
37.82% |
|
Others |
1,330.9 |
16.46% |
5. Carbon Capture and Storage (CCS) Applications: Market Analysis for 2024
The CCS market is also segmented based on applications, with each segment serving a specific industry need. In 2024, the global CCS market is anticipated to reach a value of $8,084.7 million USD, with various applications contributing differently to this growth.
Natural Gas Processing
Natural gas processing involves capturing CO2 from natural gas to obtain purified gas for sale. This application is expected to have the largest market share in 2024, with a value of $5,478.0 million USD. The significant share is due to the increasing demand for clean energy and the need to reduce emissions in the natural gas industry.
Chemical Industry
The chemical industry application of CCS aims to help chemical companies meet emission reduction targets. In 2024, this segment is projected to reach a market value of $932.0 million USD. The growth in this application is driven by the need for sustainable chemical production processes and the adoption of eco-friendly technologies.
Hydrogen Production
CCS technology, when combined with hydrogen production, can support the expansion of low-carbon hydrogen production. The market value for this application in 2024 is expected to be $762.6 million USD. The increasing focus on hydrogen as a clean energy carrier contributes to the growth of this application.
Coal Power
In the coal power sector, CCS technology can help achieve carbon emission reduction while providing stable and clean low-carbon power. The market value for coal power in 2024 is forecasted to be $476.8 million USD. Despite the declining use of coal, CCS plays a crucial role in making existing coal power plants more environmentally friendly.
Table CCS Market Sizes and Market Shares by Application in 2024
|
Application |
Market Size in 2024 (M USD) |
Market Share in 2024 (%) |
|---|---|---|
|
Natural Gas Processing |
5,478.0 |
67.76% |
|
Chemical Industry |
932.0 |
11.53% |
|
Hydrogen |
762.6 |
9.43% |
|
Coal Power |
476.8 |
5.90% |
|
Others |
435.3 |
5.38% |
6. Regional Analysis of Carbon Capture and Storage (CCS) Market in 2024
North America
North America is expected to be the largest regional market for CCS in 2024, with a projected market value of $4,472.8 million USD. The region’s strong focus on clean energy and the presence of major CCS technology developers contribute to its leading position.
Europe
Europe is projected to have a CCS market value of $495.0 million USD in 2024. The region’s commitment to reducing carbon emissions and its investment in renewable energy technologies drive the growth of the CCS market in Europe.
China
China’s CCS market is expected to reach $417.4 million USD in 2024. The country’s rapid industrialization and increasing emphasis on sustainable energy solutions are key factors in the growth of the CCS market.
Japan
Japan’s CCS market is anticipated to have a value of $77.1 million USD in 2024. The country’s focus on technology innovation and its commitment to reducing carbon emissions contribute to the growth of this market.
Latin America
Latin America’s CCS market is expected to reach $1,219.2 million USD in 2024. The region’s growing industrial sector and the need for cleaner energy solutions are driving the demand for CCS technologies.
Middle East and Africa
The Middle East and Africa region is projected to have a CCS market value of $698.0 million USD in 2024. The region’s vast oil and gas reserves and the increasing need for sustainable energy practices are key factors in the growth of the CCS market.
Figure Global Carbon Capture and Storage (CCS) Market Value by Region in 2024
7. Analysis of the Top 3 Companies in the Carbon Capture and Storage (CCS) Market
7.1 Exxon Mobil
Company Introduction and Business Overview
Exxon Mobil, headquartered in the USA, stands as a titan in the global oil and gas industry. Established in 1999 through the merger of Exxon and Mobil, the company has a diverse portfolio that extends beyond hydrocarbons into the chemical sector, producing plastics and synthetic rubber. At the forefront of carbon capture and emissions reduction technologies, ExxonMobil is committed to meeting the world’s energy demands while reducing emissions and managing climate change risks.
Products Offered
Exxon Mobil offers a range of CCS products and services, focusing on the capture, transportation, and storage of carbon dioxide. Their technology is designed to reduce emissions at scale from sectors such as refining, chemicals, cement, and steel, as well as power generation. ExxonMobil’s CCS solutions are not only integral to its own operations but also provide services to other industries looking to lower their carbon footprints.
Sales Revenue in 2023
In 2023, Exxon Mobil’s revenue from Carbon Capture and Storage (CCS) reached $1,188.7 million USD, marking a significant growth in the company’s CCS division. This revenue reflects Exxon Mobil’s substantial investment in CCS technology and its commitment to leading the industry in carbon emission reductions.
7.2 Honeywell International Inc.
Company Introduction and Business Overview
Honeywell International Inc., with headquarters in the USA, is a multinational conglomerate that invents and manufactures technologies to address critical challenges related to safety, security, and energy. Founded in 1906, Honeywell has a long history of innovation and plays a pivotal role in helping industries limit greenhouse gas emissions and achieve carbon-neutral technologies.
Products Offered
Honeywell’s CCS portfolio includes advanced carbon capture technologies that provide sustainable methods of carbon removal, preventing CO2 from entering the atmosphere. They offer both post-combustion processes, which separate CO2 from other exhaust gases, and pre-combustion processes, which convert fuel into a gaseous mixture primarily of hydrogen and CO2. Honeywell partners with industrial-scale CO2 emitters to provide end-to-end solutions, including off-the-shelf carbon capture technology.
Sales Revenue in 2023
Honeywell International Inc.’s CCS revenue for 2023 was $418.6 million USD, demonstrating the company’s strong presence in the market. This revenue figure is a testament to Honeywell’s commitment to innovation in carbon capture technology and its success in partnering with industries to reduce emissions.
7.3 Fluor Corporation
Company Introduction and Business Overview
Fluor Corporation, established in 1912 and headquartered in the USA, is a multinational engineering and construction company. It operates through its subsidiaries in the oil and gas, industrial and infrastructure, government, and power sectors. Fluor provides comprehensive engineering, procurement, and construction (EPC) solutions for carbon capture projects, including CO2 compression and transportation.
Products Offered
Fluor Corporation specializes in recovery process technologies for CCS, including Econamine FG Plus technology, which uses an amine to capture CO2 from post-combustion sources, and the Fluor SolventSM process, which employs a propylene carbonate solvent to remove CO2 from gas streams. These technologies provide clients with energy-efficient and cost-effective processes for CO2 removal, making them attractive options for retrofitting existing facilities.
Sales Revenue in 2023
In 2023, Fluor Corporation’s CCS-related sales revenue reached $371.1 million USD. This revenue showcases the company’s expertise in delivering innovative, reliable, and cost-effective project solutions in carbon capture, underpinned by over 30 years of experience in the field.