In a new report by Fortune Business Insights™, the carbon capture and storage market is forecasted to become a $6.13 billion market by 2027. The compound annual growth rate (CAGR) comes to 19.2% as the market was valued at $1.75 billion in 2019.
The report is titled: “Carbon Capture and Sequestration Market Size, Share & COVID-19 Impact Analysis, By End-Use (Enhanced Oil Recovery (EOR) and Dedicated Storage), By Capture Source (Chemicals, Natural Gas Processing, Power Generation, Fertilizers Production, and Others), and Regional Forecast, 2020-2027.”
According to the paper, the market is divided based on the capture source: chemicals, natural gas processing, fertilizers production, power generation, and others. The carbon capture and storage in the natural gas processing segment took 47.3% of market share in 2019.
That growth comes from the high capacity of natural gas production plants and the increasing demand for energy. The increasing production of oil and gas that is expected to occur in the medium term should also contribute to more carbon capture investment and the growth of this segment.
As a constraint to global expansion of the CCS market is pointed out the requirements of large capital expenditures CAPEX for the construction of carbon capture plants. The disruptions in operations of many industry players because of the Covid-19 pandemic also didn’t boost construction plans.
Outlook For The Carbon Capture And Storage Market
The financial boosts by governments and the positive outlook for future strengthening of decarbonization plans of countries around the world is ensuring stability of the market. Many companies are joining forces on investing in carbon capture technologies.
Exxon is looking for partners and government support for the proposed carbon capture infrastructure in the so-called Houston CCS hub. Oil player Eni and Progressive Energy Limited are collaborating on a carbon capture cluster in the UK with potential to deliver over 25 million tons of CO2 sequestration per year.
Aker Solutions also received technological approval from DNV GL for its CCS systems. It will build a carbon capture technology at Norcem’s cement plant in Norway and store 400,000 tons of liquified CO2 per year.
However, the EOR segment is also set to be favored by the projected increase in fossil fuel demand. According to EIA in 2017 the number of global EOR projects is about 374 and 44% of them utilized CO2.
The new report by the Fortune Business Insights™ is pointing to a substantial increase in the market size of CCS around the world. Despite the costs and the economic slowdown due to the pandemic, the carbon capture projects are on the rise with a propelling growth outlook.
Here is a link to a summary of the report: Carbon Capture and Sequestration Market Size, Share & COVID-19 Impact Analysis 2020-2027