Carbon Capture, Utilization, and Storage (CCUS) Market: A Key Solution for Reducing Global Emissions

Carbon Capture, Utilization, and Storage (CCUS) Market: A Key Solution for Reducing Global Emissions

According to Next Move Strategy Consulting, the global Carbon Capture, Utilization and Storage Market is predicted to reach USD 8 billion by 2030 with a CAGR of 13% from 2024-2030. The Carbon Capture, Utilization, and Storage (CCUS) market is gaining significant traction as industries around the world focus on sustainability and reducing their environmental impact. CCUS technologies are designed to capture carbon dioxide (CO2) emissions at the source—primarily from large point sources such as power plants and industrial facilities. These technologies allow for the capture and safe storage of CO2, preventing it from entering the atmosphere and contributing to climate change. CCUS not only helps mitigate greenhouse gas emissions but also supports industries in meeting their sustainability goals and adhering to international climate agreements.

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Market Drivers: Climate Change Awareness and Regulatory Push

The growing awareness of climate change and the urgency to reduce greenhouse gas emissions are the primary drivers of the CCUS market. As industries face increasing pressure from governments, regulatory bodies, and the public to cut their carbon footprints, CCUS offers a viable pathway to achieve these targets. By capturing CO2 and either storing it underground or using it in other industrial processes, CCUS provides a solution that is both environmentally responsible and economically beneficial.

A major factor contributing to the rise in CCUS adoption is the increasing global investment in carbon mitigation technologies. According to the International Monetary Fund, governments around the world are expected to invest up to $5 trillion by 2050 in initiatives to reduce carbon emissions. This strong government backing, including subsidies, tax exemptions, and favorable policies, is driving the development and adoption of CCUS technologies. Many nations are committed to achieving carbon neutrality, and CCUS plays a critical role in this transition.

An example of this global shift toward CCUS is the partnership between Schlumberger NV and Aker Carbon Capture. In 2024, the companies launched Aker Carbon Capture AS, a joint venture focused on advancing carbon capture technologies for industrial decarbonization. This collaboration leverages Schlumberger's extensive energy sector experience alongside Aker’s leadership in carbon capture technology to accelerate the deployment of sustainable industrial practices.

Challenges: High Investment and Safety Concerns

While the potential for CCUS technology to drive emissions reductions is immense, there are several challenges that hinder its widespread adoption. The most significant obstacle is the high initial investment required for CCUS projects. The infrastructure needed to capture, transport, and store CO2 is capital-intensive, and the operational costs associated with long-term storage can be substantial. Additionally, there are safety concerns related to the long-term storage of CO2, particularly the risk of leakage from underground storage sites.

Despite these challenges, technological innovations such as carbon8 and oxy-fuel combustion, which aim to capture 100% of CO2 emissions, are expected to offer new opportunities for the CCUS market. These advancements could reduce costs and improve the efficiency of carbon capture, making it more accessible to a broader range of industries.

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Market Segmentation

The CCUS market is segmented based on service, technology, end-user, and region.

  • Service:
    • Capture: The process of capturing CO2 emissions directly from industrial sources.
    • Transportation: The transportation of captured CO2 to storage sites or utilization facilities via pipelines or other infrastructure.
    • Utilization: The use of captured CO2 in industrial processes, such as in the production of chemicals, fuels, or building materials.
    • Storage: The long-term underground storage of CO2 to prevent it from entering the atmosphere.
  • Technology:
    • Pre-combustion Capture: CO2 is removed from fossil fuels before combustion.
    • Industrial Process: Capturing CO2 during industrial processes such as cement or steel manufacturing.
    • Oxy-fuel Combustion Capture: A technique where oxygen is used instead of air for combustion, enabling easier capture of CO2.
    • Post-combustion Capture: CO2 is captured after the combustion of fossil fuels.
  • End-User:
    • Oil & Gas: The oil and gas industry is one of the largest contributors to CO2 emissions and is a major adopter of CCUS technologies.
    • Power Generation: Power plants are significant sources of CO2 emissions, making them key targets for CCUS implementation.
    • Iron & Steel: The iron and steel industry also produces large amounts of CO2, prompting investment in CCUS to reduce emissions.
    • Chemical & Petrochemical: These industries use large amounts of energy and generate significant CO2 emissions, driving demand for CCUS.
    • Cement: Cement production is another high-emission industry that is increasingly adopting CCUS technologies.
    • Others: Including sectors like aviation, shipping, and others that are working to reduce their carbon footprints.
  • Region:
    • North America: North America dominates the CCUS market due to rising government initiatives and investments in emissions reduction. The U.S., for example, has set ambitious targets to reduce greenhouse gas emissions by 50-52% by 2030, with a goal of achieving 100% pollution-free electricity by 2035. Additionally, the U.S. and Canada’s substantial oil and gas industries are pushing for more efficient carbon capture solutions.
    • Asia-Pacific: The Asia-Pacific region is experiencing steady growth in the CCUS market, especially due to the rising steel production in countries like China and India. These countries are adopting CCUS to comply with environmental goals and reduce emissions from energy-intensive industries.
    • Rest of the World (RoW): Includes regions such as the Middle East, Latin America, and Africa, where CCUS adoption is growing in response to government policies and the desire to meet international climate commitments.

Key Players

The CCUS market is competitive, with several key players leading the way in technology development and project implementation. Notable companies in the sector include:

  • Royal Dutch Shell
  • Fluor Corporation
  • Mitsubishi Heavy Industries Ltd.
  • Exxon Mobil Corporation
  • Linde Plc
  • Schlumberger Ltd.
  • Aker Solutions
  • Honeywell International
  • Equinor ASA
  • TotalEnergies
  • Sulzer
  • Sinopec

These companies are actively involved in developing and deploying CCUS technologies, with some collaborating on large-scale projects. For example, Shell Canada Products has invested in the Polaris carbon capture project in Canada, which aims to capture 650,000 tonnes of CO2 annually. Similarly, Mitsubishi Heavy Industries partnered with ArcelorMittal, MHI, and BHP to reduce CO2 emissions at a steel plant in Gent, Belgium.

Conclusion

The CCUS market is poised for significant growth as governments, industries, and consumers recognize the urgent need to address climate change. By capturing and storing CO2 emissions, CCUS technologies provide an essential solution for industries to meet their carbon reduction targets while promoting economic growth. Despite challenges such as high investment costs and safety concerns, innovations in carbon capture technology continue to drive the market forward. With strong government support, particularly in North America, and increasing investment in low-carbon technologies, the CCUS market is set to play a critical role in the global efforts to combat climate change.

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