Growing Initiatives Taken by the Government of Various Nations to Meet Net Zero Emissions in the Coming Years to Propel the Growth of the Global Carbon Capture, Utilization, and Storage Market

Carbon capture, utilization, and storage (CCUS) is a process that captures the carbon dioxide emissions from various sources such as coal-fired power plants which is then utilized or stored to prevent its emissions from entering the atmosphere. By devising effective strategies and minimizing the emissions from existing industrial and power plants, nearly about 600 billion tons of carbon dioxide emissions can be reduced within the next five years. CCUS also contributes to about 15% of cumulative CO2 reduction worldwide.

Forecast Analysis of the Market

Increasing initiatives taken by the government of various nations across the globe so as to meet net zero emissions by 2050 is expected to drive the growth of the carbon capture, utilization, and storage market during the forecast period. In addition, declining power emissions from the power sector is predicted to bolster the growth of the market during the forecast period. Furthermore, growing number of CCUS projects across the globe is expected to create tremendous opportunities for the growth of the market during the forecast period. However, expensive capital investment cost in CCUS technology is expected to impede the growth of the global carbon capture, utilization, and storage market during the forecast period.

According to the report published by Research Dive, the global carbon capture, utilization, and storage market during the forecast period is anticipated to generate a revenue of $5,306.7 million by 2028, growing rapidly at a CAGR of 13.7% during the forecast period 2021-2028. The illustrious players of the market include Mitsubishi Heavy Industries Ltd., Schlumberger Limited, Honeywell International Inc., Aker Solutions, Royal Dutch Shell Plc, Exxon Mobil Corporation, Linde Plc, Fluor Corporation, JGC Holdings Corporation, Halliburton, and many more.

Key Developments

The key companies operating in the industry are adopting various growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global carbon capture, utilization, and storage market to grow exponentially.

For instance, in October 2020, Tata Steel Limited, one of the leading steel manufacturing companies of India, collaborated with the Council of Scientific and Industrial Research (CSIR), India’s largest research and development organization, in order to deploy CCUS technologies in the steel industry.

In October 2021, Chart Industries Inc., a leading global manufacturer of liquefaction and cryogenic equipment serving multiple applications in the energy and industrial gas end markets, collaborated with Lonada, a global leader in the development, manufacturing and marketing of exhaust gas cleaning systems that reduce emissions from the marine and power generation industries, in order to develop Carbon Capture and Sequestration (CCUS) projects that will leverage Ionada’s carbon capture technology with Chart’s extensive expertise in CO2 storage and handling systems.

In November 2020, Baker Hughes, a US-based company that provides carbon capture and storage services, acquired Compact Carbon Capture (3C), an innovative company specializing in in producing equipment and technology to reduce CO2 emissions that cause global warming & climate change, in order to advance industrial decarbonization.

Most Profitable Regions of the Market

The North America region is expected to be most lucrative as it generated a revenue of $807.1 million in 2020, and is further expected to grow exponentially during the forecast period. Growing importance on the incorporation of CCUS in oil & gas sector across federal, state, and provincial levels in this region is expected to drive the growth of the market. In addition, presence of prominent players of the market in this region is further expected to bolster the growth of the regional carbon capture, utilization, and storage market during the forecast period.

COVID-19 Impact on the Market

The outbreak of coronavirus has had a devastating impact on the growth of the global carbon capture, utilization, and storage market, owing to the occurrence of lockdowns in various nations across the globe. Delays and cancellations in the development of new CCUS projects due to the economic slowdowns of numerous countries coupled with the increasing focus and investment on the healthcare sector by the governments during the pandemic has had a negative impact on the growth of the market.