Technology and government regulations are expected to drive the carbon capture and storage market, and it is projected to be valued at $34.86 billion by 2033, according to a report from ReasearchAndMarkets.com.
Technological Advancements in Carbon Capture and Storage
The report underscores the role of technological development in carbon capture and storage (CCS), which is valued at nearly $12 billion in 2023, conveying the industry’s goal to obtain more efficient and cost-effective carbon capture techniques. One of the projects at the forefront of technological advancements is the XLR8 CCS project initiated by C-Capture in June 2022.
This initiative targets the capture of carbon emissions from hard-to-decarbonize industries using a post-combustion collection approach that relies on novel, amine-free capture solvents. The use of such solvents not only facilitates large-scale, cost-effective manufacturing but also holds the potential for concurrent biomethane production alongside carbon capture.
Market Challenges and Restraints
The report also showcases the limitations of CCS, emphasizing how various market challenges can affect the success of CCS. According to the report, the potential of CCS is substantial, but high deployment costs pose a restraint, which varies based on carbon source and application. Sectors with concentrated CO2 streams, such as certain industrial processes, exhibit lower capture costs compared to applications like cement production and power generation.
Additionally, the report highlights the variability in transport and storage costs, influenced by factors such as carbon volume, distances, and storage conditions. With a total CCS cost estimated between $30 and $200 per metric ton of carbon avoided, CCS faces a cost disparity compared to alternative emission reduction technologies like renewable energy.
Market Dynamics: Factors Driving and Hindering Growth
When it comes to the CCS market’s growth, the report signals a series of contributing factors, which include government regulations and policies, ongoing technological advancements, and international collaborations. However, the high deployment costs remain a significant hurdle, along with concerns over CO2 leakage, limited infrastructure and storage capacity, and competition from alternative decarbonization options.
In the U.S., onshore pipeline transport costs range from $2 to $14 per ton of carbon dioxide, and storage costs fluctuate. The total CCS cost varies, generally estimated at $30 to $200 per metric ton of CO2 avoided, significantly more than renewable energy technologies. Thus, widespread CCS adoption requires substantial government incentives or carbon pricing mechanisms.
Despite these challenges, the CCS market is anticipated to offer more opportunities, ranging from the integration of hydrogen production with CCS to the role of carbon capture technologies in achieving global climate goals.
Moreover, the report delves into various segments of the CCS market. The CCS Type outlook includes CCS technology and CCS services, further dissected into industrial separation capture technology, inherent separation technology, OXY-fuel combustion capture technology, post-combustion capture technology, pre-combustion capture technology, and others. Additionally, the report explores carbon capture services, carbon storage services, carbon capture transportation services, and more. The outlook encompasses power generation, industrial, transport, and construction sectors, among others.