Carbon capture and storage market projected to reach $5.2B by 2031

A new report from India-based Straits Research predicts the global carbon capture and storage (CCS) market size will reach $5.26 billion by 2032, growing from $2.98 billion in 2022 and reflecting a compound annual growth rate expansion of 6.5 percent.

In North America, the CCS market is led by a rising demand for clean technologies and the increasing use of carbon dioxide in enhanced oil recovery (EOR) techniques, according to the report.

CCS, one method for reducing carbon emissions, is a three-step process, including capturing, transmitting and underground storage of carbon dioxide produced by energy production or industrial activities. As one of the few options for decreasing emissions from heavy industries and removing carbon from the atmosphere, CCS technology will become increasingly essential for achieving net-zero goals, the report says.

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Driving the growth of the CCS market is an expanding preference for the carbon dioxide injection method for EOR. The oil and gas industry can frequently utilize captured CO2 from industries and power plants using fossil fuels and biomass by selling it to industrial facilities or injecting it underground to improve oil recovery. The injection of CO₂ into active oil fields is an established EOR method, and using injection can significantly boost oil output to satisfy the world's growing energy demands while safely storing CO₂ in established oil fields to reduce atmospheric CO₂ emissions.

Additionally, the increasing visibility of bioenergy carbon capture and storage (BECCS) is expected to create global CCS market opportunities. Automobiles are fueled with bioethanol, and biomass is burned to generate energy. BECCS entails using biomass as a fuel source and capturing and storing the CO₂ produced when biomass is converted to energy. The geoengineering strategy replaces fossil fuel energy while also removing carbon dioxide from the atmosphere.

Globally, five facilities currently use BECCS technology, capturing approximately 1.5 million tons of CO₂ annually. One of the most significant applications of BECCS is waste-to-energy, which presents continued growth potential for the CCS market.