The global carbon capture and storage market is forecasted to grow at a significant rate owning to its increasing use in applications such as enhanced oil recovery, industrial, and agricultural. Generally, carbon capture and storage refer to the capturing of the carbon dioxide from the various application processes which emit carbon dioxide. After the carbon dioxide is stored, the gases are separated and transportation is being done through pipelines and other forms of transport. These gases are stored in depleted oil and gas reservoirs, aquifers, and depleted coal beds.
The market is segmented by service, application, and geography. Based on the service, the carbon capture and storage market is categorized into capture, transportation, and storage. The capture service is further broken down into pre-combustion capture, post-combustion capture, and oxy-fuel combustion. It is seen that the capture service is a major contributor in the market, attributing to the rise in the pollution levels. Additionally, pre-combustion is expected to hold the largest share attributed to its growing installation in new projects.
On the basis of application, the carbon capture and storage market is categorized into enhanced oil recovery (EOR) process, industrial, and agricultural. During the forecast period, the industrial application is expected to contribute a major share in the market. This is attributed to the fact that the industrial process consists of applications such as cement production, natural gas production facilities, and food processing. These applications emit large amount of greenhouse gases which is harmful to the atmosphere. Thus, there is a rising demand for storage of the emitted carbon to reduce the impact of carbon on the atmosphere.
Additionally, the EOR process is another application in which there is a demand for the storage of carbon. EOR processes are going on in the oil fields to extract the crude oil from the mature fields. This process emits a huge amount of carbon, leading to the use of the storage facilities of carbon. These factors are helping in the growth of the carbon capture and storage market.
The major growth drivers identified in the carbon capture and storage market is the rise in the number of industrial projects and oil field recovery projects. With the rapid development of economy, there has been a rise in the infrastructure projects which emits carbon dioxide. Additionally, the enhanced oilfield recovery projects emit the carbon dioxide when the equipment are in process. These emitted carbon dioxide needs to be stored, thus driving the carbon capture and storage market.
High initial cost which is required in implementing the carbon storage technologies is one of the restraint acting in against the growth of the carbon capture and storage market. The technology which is used in the storage of the carbon materials is still at a developing phase and require integration of high cost sophisticated technologies. This has resulted in the increased cost for the product, which has decreased its attractiveness among price sensitive customers.
Emerging demand for carbon dioxide injection in EOR is an opportunity for the carbon capture and storage market. It is seen carbon dioxide injection is a good displacing agent for the oil recovery services, attributed to the benefits it occurs. The injected carbon dioxide can remove a significant volume of oil which is not possible with the help of traditional forms of oil recovery. Additionally, this would also mitigate the amount of carbon dioxide released into the atmosphere as they would be used in the injection purpose. Thus, this surge in demand provides an opportunity for the market.
Insights by geography
On the basis of geography, the market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. North America is the largest consumer for the carbon storage and is expected to dominate the global carbon capture and storage market during the forecast period. In North America, it is seen that U.S. is contributing the largest share of the carbon storage. This is attributed to the fact that there is an increased demand for the clean energy in that country. Additionally, there is a growing use of the CO2 in the EOR process which is leading to the use of these storage facilities.
Some of the major players operating in the global carbon capture and storage market are Royal Dutch Shell plc, Halliburton Company, Schlumberger Limited, Aker Solutions ASA, Equinor ASA, Chevron Corporation, Royal Dutch Shell plc, Carbon Engineering, NRG Energy Inc, and Honeywell International Inc.