Carbon Capture and Storage Market Size

Carbon Capture and Storage Market Size

Carbon Capture and Storage Market size exceeded USD 6.8 billion in 2023 and is projected to expand at more than 19% CAGR from 2024 to 2032.

A steady rollout of strict government regulations to reduce GHG emissions worldwide is set to positively shape the industry scenario. For instance, in May 2022, the U.S. government invested USD 2.3 billion to cut carbon pollution in the country. Such proactive emission control initiatives are creating a strong impetus for innovations in the field of carbon capture technologies. In July 2022, the UK government announced an investment of more than £54 million (~USD 66 million) towards projects aimed at developing innovative CO2 removal technologies.

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Heavy installation costs of CCS projects may impede business growth

The high capital investments costs of carbon capture and storage projects is likely to hold back the industry outlook. The relatively complex nature of CCS projects also commands a high initial investment, restricting product adoption. Carbon capture projects also require more assistance for operating capture and storage units. The cost of carbon capture varies greatly between different sources ranging from USD 15 – USD 25/t CO2 for industrial processes, producing pure CO2 streams, to USD 40- USD 120/t CO2 for processes with dilute gas streams. Moreover, the highly expensive nature of direct-from-air capture systems presents further entry barriers to the market.