Fortune Business Insights, a market research company, expects the carbon capture and storage (CCS) market to grow to $7 billion by 2028 aided by rising investments in developing new alternatives for curbing the carbon footprint and achieving the energy transition goals and net-zero targets.
The company expects the market to exhibit a CAGR of 19.5 per cent from 2021 to 2028, while the global carbon capture and sequestration market size will grow from $2.01 billion in 2021 to $7.00 billion by 2028.
The report by Fortune Business Insights states that rising investments by administrations for the creation of new alternatives for the efficient removal of carbon from various sources shall affect the market positively. In addition, numerous companies worldwide are gathering information about the new locations for CCS.
The report further mentions that the market stood at $1.96 billion in 2020, however, it is likely to exhibit a CAGR of 19.5 per cent during the forecast period between 2021 to 2028.
Low-carbon projects to aid expansion of CCS market
In April 2021, Equinor announced cooperation with SSE Thermal to build two low-carbon power plants in Humber , U.K. One will be designed with carbon capture and storage technology to help the country meet its target of capturing 10 MT of CO 2 per year by 2030.
Moreover, in March 2020, Rishi Sunak , Chancellor of the Exchequer, declared that CCS would receive cash in the form of the CCS Infrastructure Fund. He also announced that the budget for research and development (R&D) would be doubled to meet the growing demand for new decarbonization technologies.
To remind, using their decades of experience in the oil and gas sector, three majors announced in May 2020 plans to move forward with a project which would enable the transport of carbon dioxide captured from industrial sites in Norway and its storage in a reservoir below the seabed in the North Sea.
CCS demand to skyrocket as need to reduce carbon increases
Fortune Business Insights claims that a tertiary oil recovery method called enhanced oil recovery (EOR) is being used extensively worldwide to retain 65 per cent of the total recoverable oil, while the authorities and major corporations are deploying several measures to reduce the maximum levels of carbon dioxide generated during the production of fossil fuels.
Therefore, this factor is expected to boost the CCS market growth in the coming years. In line with this, the Alberta Carbon Trunk Line (ACTL) system CCUS project in Canada came online in June 2020 to seize harmful carbon dioxide from industrial facilities and utilize the gas for permanent storage and enhanced oil recovery.
Fortune Business Insights also says that the need for huge investments for setting up large-scale CCS systems may hamper the carbon capture and sequestration market growth. Moreover, the Covid-19 pandemic has slowed down operations in various facilities across many countries, thus, this factor may also hinder growth in the foreseeable future.
Oil & gas industry players joining hands to develop new CCS projects
It is worth reminding that in July 2021, Aker Carbon Capture launched a new integrated service portfolio to provide customers with a single offering that includes the whole CCS value chain, including CO2 capture, transportation, and treatment.
According to Fortune Business Insights, the market houses a large number of organizations all over the world and they are trying to get hold of more revenue by teaming up with other enterprises.
Some of them are also signing new agreements to develop new projects in the future. Out of all those, ExxonMobil , Chevron, Equinor, Shell, BP , TotalEnergies, Aker Solutions and ADNOC Group are considered the dominant companies on account of their increasing investments in setting up new CCS stations and enhancing their operations, based on the report.
Governments are also actively participating in CCS projects and supporting clean energy initiatives to step up their energy transition game.
To remind, one of the biggest government grants in December came from Denmark. The country’s government has approved funding totalling about $41 million for two CCS projects.