(iStock)
According to Technavio, the Carbon Capture and Storage (CCS) market is forecasted to increase by 104.5 million tons from 2023 to 2027. Additionally, the market is expected to grow at a compound annual growth rate (CAGR) of 22.91% during the forecast period.
The CCS market is fragmented due to the participation of many global and regional players. The market comprises category-focused, industry-focused, and diversified vendors.
The report analyzes the market’s competitive landscape and offers information on several market companies, including Air Products and Chemicals, Aker Solutions ASA, Babcock and Wilcox Enterprises, Chevron, ENGIE SA, Eni Spa, Exxon Mobil, General Electric, Hitachi, Mitsubishi Heavy Industries, Shell and Siemens.
During the forecast period, the pre-combustion segment of CCS market is expected to experience notable growth. Pre-combustion technology, which involves removing CO2 from fuel before combustion, is identified as the most mature technology within the rapidly evolving CCS market. On the other hand, post-combustion CO2 capture technology, captures CO2 from flue gas through a scrubbing process, offering flexibility for power plants.
Tax incentive, government initiatives are among the key drivers
The global CCS market is experiencing significant growth, driven by many factors such as government initiatives, tax incentives, and the pressing need to reduce greenhouse gas emissions. The U.S. Department of Energy plays a crucial role in facilitating the growth by providing loans to initial stage CCS projects, particularly in sectors like power generation, oil and gas, metal production, cement and others.
CCS technology offers a promising solution by capturing CO2 from industrial processes like oxy-combustion and using methods such as the water-gas shift reaction (WGSR) and acid gas removal (AGR) process. Various techniques, including integrated gasification combined cycle (IGCC) and oxy-fuel combustion, are being explored to improve the efficiency of carbon capture from fossil fuels. The market is witnessing a CAGR as more industries see the importance of curbing nitrogen oxides and other harmful by-products for the environment.
The deployment of CCS technology needs substantial capital investment but offers long-term benefits, including tax benefits and a reduced carbon footprint. Diverse methods such as pre-combustion capture, post-combustion capture, and oxy-fuel combustion are being utilized across various sectors, including natural gas plants and the oil & gas end-use industry.
Industry leaders like Mitsubishi Heavy Industries, Linde Plc, Schlumberger are driving innovation in CCS technology, focusing on enhancing process efficiency and broadening the value chain. Essential components of CCS infrastructure, including CO2 scrubbers, air-separation units, and carbon storage facilities, facilitate the secure capture and storage of CO2 emissions.
With increasing demand for greener energy sources, the CCS market is set for significant growth in the forecast period, playing a key role in global initiatives to mitigate climate change.
