The main factors driving this new niche market are the increased demand for CO2 injection technology and stringent emission standards.
The world economy is moving towards an increasingly further decarbonization. Renewable energies and energy efficiency systems are the solution for this. However, some argue that it is also necessary to incorporate CO2 capture and storage technologies (CCUS, The climate targets must be met if the climate objectives are to be achieved.
So much so that, according to the analysis ‘Carbon Capture And Storage Market’ made by 360 Market Updates, The global carbon capture and storage market could register an annual growth of 9.22% in the period analyzed, between 2020-2024.
The report provides an overview of this emerging industry, manufacturers and key trends by country and type of technology. CO2 emissions are the main problem of climate change and alternatives must be sought to reduce them as much as possible.
The sectors most interested in this type of technology are the petrochemical industry in particular, heavy industry and transportation. In the case of the former, carbon dioxide (CO2) is widely used for enhanced oil recovery (EOR) in mature oil fields.
A $3 billion market
In 2019, this market exceeded $3 billion (€2,528 million at current exchange rates) and the cumulative CO2 captured and stored capacity is expected to be more than 124 million tons per year (MTPA) by 2026.
Increasing industrialization will create significant market opportunities in several sectors, including oil and gas, chemicals and power generation around the world, according to a report just published of the consulting firm McKinsey & Company.
McKinsey claims that this type of technology captures about 90% of the CO2 produced. in various industrial operations due to the use of fossil fuels.
The report states that the increased energy demand together with a dizzying investment to the sector upstream y downstream will further improve the outlook for this market.
The only problem McKinsey notes remains the high initial cost and significant complexity of the system. About half of CO2 emissions are generated by factories, refineries, power plants and the like. Some can be captured relatively cheaply, 25 to 30 dollars per ton.
But for others (such as emissions from cement, steel, coal and gas-fired power plants), the costs increase, ranging from between US$60 and more than US$150 per tonne.
If the policies of governments around the world were to be want to limit the emission of greenhouse gases in economic sectors, could be the key to stimulating the growth of this industry.
Position of the European Union
In the Old Continent, climate policies have made room for these technologies. In the document ‘A long-term strategic vision for a prosperous, modern, competitive and climate-neutral economy by 2050’.’ , The company sees this as necessary to achieve long-term climate objectives.
At Spain, also appears in the PNIEC (National Energy and Climate Plan), which states that among the main measures to combat climate change are the following the promotion of the construction of CO2 capture and geological storage projects. and related innovative renewable energy technologies.
Even in United Kingdom, the Department of Enterprise, Energy and Industrial Strategy has just presented its plan for ‘Carbon Capture, Usage and Storage’.’, The government of the island nation has responded to potential business models in this field.
It says the «CCUS has the potential to deliver a stronger, greener UK by transforming our industrial heartland, supporting clean growth and providing new economic opportunities for UK businesses and supply chains through international investment.».
Great potential in the U.S. and Canada
However, it is in the North American region that this global market dominates to date. For McKinsey & Company, the growing demand for clean technology, accompanied by the increasing use of CO2 in EOR practices, is likely to drive this market in countries such as the US and Canada.
The US uses 75% of global carbon sequestration capacity in EOR operations, representing nearly 30 metric tons per year.
In addition, it has the FUTURE Law (acronym for Promoting Carbon Capture, Utilization, Technology, Underground Storage and Capital Emission Reduction) which provides incentives for its development.
In fact, with approximately 50% of state funding received for pipelines, more than 19 million metric tons of carbon dioxide could be captured and transported cost-effectively per year.
With the development of shale gas techniques and the reduced interest in carbon capture by the new government, the CCUS market is expected to grow at a moderate pace in the country. Thus, increasing North America's market share.
