Future of the Carbon Capture and Storage Market: Opportunities and Challenges

Imagine a world where we can keep using some of our current energy systems but without the huge environmental cost. That's exactly where Carbon Capture, Utilization, and Storage—CCUS—comes in. It’s one of the most promising tools we have in the fight against climate change.

According to BISResearch, The global carbon capture utilization and storage (CCUS) market is expected to grow with a CAGR of 19.2% by 2034.

What Is CCUS Exactly?

CCUS is all about capturing the carbon dioxide (CO2) that would otherwise go into the atmosphere, contributing to global warming. Once captured, the CO2 can either be put to use—like in industrial processes or even enhanced oil recovery—or stored safely underground. It's a technology that's quickly gaining traction as countries and companies strive to hit net-zero emissions targets.

CCUS Market Segmentation

Segmentation 1: by Application

• Oil and Gas Industry

• Power Industry 

• Others (Cement Industry and Chemical Industry)

Segmentation 2: by Capture Technology

• Post-Combustion Carbon Capture

• Pre-Combustion Carbon Capture

• Oxy-Fuel Combustion Carbon Capture

Segmentation 3: by Region

• North America - U.S. and Canada

• Europe - Belgium, Norway, Croatia, Iceland, and Rest-of-Europe

• Asia-Pacific - China and Australia

• Middle East– U.A.E., Qatar, and Saudi Arabia

• Rest-of-the-World - South America and Africa

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What's Driving the Growth of Carbon Capture Utilization and Storage Market?

• Favorable government policies driving the deployment of CCUS technology

• Increasing demand for CO2 for enhanced oil recovery (EOR)

• Rise in adoption of net-zero targets.

Challenges in the carbon capture utilization and storage market

• High initial cost of carbon capture utilization and storage process

• CO2 leakage from the underground storage reservoirs

Recent Developments in Global Carbon Capture Utilization and Storage Market

• In March 2022, ExxonMobil Corporation announced hydrogen production facility, carbon capture, and storage projects at its integrated refining and petrochemical site in Baytown, Texas, U.S. This would support companies in reducing emissions from local industries and company operations. 

• In November 2021, ExxonMobil Corporation and Petronas signed a Memorandum of Understanding (MoU) to collaborate and jointly explore potential carbon capture and storage projects in Malaysia. This MoU would strengthen a decades-long strategic partnership between ExxonMobil and Petronas and has the objective of helping Malaysia reduce emissions and achieve its net-zero ambitions.

• In May 2021, Linde plc was selected by the U.S. Department of Energy’s National Energy Technology Laboratory (NETL) to install and test a 200 tons/day CO2 capture large pilot plant at the City Water, Light & Power (CWLP) power plant in Springfield, IL. The project would be executed in collaboration with the BASF, the University of Illinois at Urbana Champaign, ACS, and CWLP. The operation of this facility provides an opportunity to demonstrate economically attractive and innovative capture techniques.

Key Players in the CCUS Market

• Fluor Corporation

• Exxon Mobil 

• Mitsubishi Heavy Industries

• Linde Plc

• Aker Carbon Capture

• Royal Dutch Shell

• Climeworks

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Conclusion

CCUS isn't a silver bullet, but it’s a powerful tool in our climate toolbox. With the right investment and support, it can play a huge role in getting us to a low-carbon future. There are still challenges, but the momentum is building. If you're in energy, heavy industry, or environmental policy, this is definitely a market to watch—and maybe even join.