The global carbon capture, utilisation, and storage (CCUS) market is projected to grow to $10.3 billion by 2032, expanding at a CAGR of 13.3%, according to a new report from Allied Market Research.
This compares to a market value of $3 billion in 2022, with growth set to be driven by the increased focus by governments and industries to reduce carbon emissions and implement clean energy strategies.
With this in mind, on Monday Germany launched a €6 billion initiative to accelerate industrial decarbonisation, which included a carbon capture and storage element for the first time. The initiative, announced by German economic minister Katherina Reiche, will target energy-intensive sectors such as steel, cement, chemicals and glass.
Oil and gas
As Allied Market Research noted in its report, post-combustion capture technology accounted for nearly half of the CCUS market in 2022, with the oil and gas sectors dominating the market, with a near 60% share.
‘The carbon capture, utilisation, and storage (CCUS) market is gaining global traction as industries and governments intensify efforts to mitigate carbon dioxide (CO₂) emissions,’ Allied Market Research said in its report.
‘This advanced technology captures CO₂ from large industrial sources, transports it safely, and stores it deep underground to prevent its release into the atmosphere – playing a crucial role in achieving net-zero goals worldwide.’
Regional focus
North America remains the leading regional market for CCUS technologies, holding more than two fifths of global market share, supported by favourable policy frameworks. Examples of major projects include the Quest facility in Alberta, developed by Shell with Chevron and Canada Energy, which captures and stores more than one million tonnes of carbon dioxide annually.
Europe and the Asia-Pacific region are ‘rapidly advancing’, however, with significant investment in decarbonisation projects – at Chevron’s Gorgon Project, which is located in Western Australia, natural gas is transported via undersea pipelines to a liquefied natural gas (LNG) plant where carbon dioxide is separated and stored deep underground.
‘While the market outlook is promising, the high cost of carbon capture and storage technologies remains a major challenge,’ Allied Market Research added. ‘Fluctuating crude oil prices also impact the profitability of CO₂-EOR operations, potentially restraining short-term adoption.
‘However, ongoing technological innovation, supportive government policies, and rising investments in Asia-Pacific and Europe are expected to open new growth avenues. Several upcoming CCUS projects across China, Japan, the UK, and Norway are advancing low-cost capture systems, positioning the global market for strong long-term growth.’ Read more here.
