Driven by government action and the need for heavy industries to reduce emissions, the carbon capture and storage market is expected to see steady growth through the end of the decade, according to a report.
Grand View Research says the global carbon capture and storage market will be valued at $5.35 billion by 2030 and grow at a CAGR of nearly 6% from 2022 through that time. The view that carbon capture and storage (CCS) technology can serve as a large-scale solution to help achieve net-zero goals is also a factor in the expected growth, according to the report.
Power generation accounted for the largest share of carbon capture use, at more than 40%, according to Grand View Research. That is due to increasing regulations of facilities, especially with coal-fired power plants being heavy emissions emitters.
The oil and gas industry is not far behind in its operation of CCS technologies. Cement is listed as the other significant industry using carbon capture platforms.
Carbon capture facilities can capture more than 40 million metric tons of carbon dioxide per year, according to the International Energy Agency. Some of the facilities have been in place since the 1970s, and more than 100 projects were in the works in 2021. The Center for Climate and Energy Solutions says CCS can capture more than 90% of emissions from industrial facilities and could account for 14% of worldwide emissions reductions to achieve 2050 net-zero goals.
In the United States, the Senate’s recently passed Inflation Reduction Act includes incentives to increase carbon capture development. The European Union is also increasing regulations to grow commercial-level CCS projects.
Several large projects are underway around the globe. The Northern Lights CCS industrial project in Europe will have the capacity to capture 1.5 million tons of carbon per year.
Other industrial-level projects involving pipelines in the United States are also underway. Honeywell and EnLink Midstream are developing one along the Louisiana Gulf Coast, and Chart Industries and Wolf Carbon Solutions have a project in the Midwestern US.
The Grand View Research report says the pre-consumption segment led the CCS market in 2021, but post-consumption will be more used by the end of the forecast period. It also looked at technologies focused on industrial processes and oxy-combustion.
North America accounted for more than 36% of the CCS market share in 2021. Europe followed, holding 28% of the market share.
Key players in the carbon capture market according to Grand View Research include Aker Solutions, Dakota Gasification, Equinor, Fluor, Linde, Maersk Oil, Mitsubishi Heavy Industries, Royal Dutch Shell, Siemens, and Sulzer.