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Base Year: 2023
Companies covered: 15
Tables & Figures: 173
Countries covered: 8
Pages: 170
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Power Generation Carbon Capture & Storage Market
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Power Generation Carbon Capture & Storage Market Size
Power Generation Carbon Capture & Storage market size was valued over USD 2.1 billion in 2023 and is set to grow at a rate of over 19.1% by 2032. Growing concerns about climate change and the need to reduce carbon dioxide (CO2) emissions are driving global interest in CCS technologies. Governments and organizations worldwide are exploring ways including investments & funding to achieve net-zero emissions, making CCS a potential solution for decarbonizing power generation.
For instance, in July 2023, the European commission The European Commission has announced that it will invest over USD 3.6 billion to scale up innovative clean technologies. The incorporation of Carbon Capture and Storage (CCS) in power generation is frequently shaped by government policies and regulations. Numerous governments are either in the process of implementing or contemplating policies that provide incentives or require the utilization of CCS technologies as part of strategies aimed at achieving emission reduction targets.
The growing recognition of CCS as a crucial technology for achieving climate goals is attracting increased investments. Both public and private sector investments are supporting research, development, and deployment of CCS projects in power generation. In addition, CCS is seen as a complement to intermittent renewable energy sources. It can provide a way to manage the variability of renewable energy by offering a reliable, dispatchable source of power while still reducing overall emissions. Moreover, besides power generation, CCS is finding applications in industrial processes such as cement and steel manufacturing, where significant emissions are generated. This broader application enhances the overall growth potential for CCS technologies.
The heightened policy support, coupled with a growing focus on achieving net-zero emissions, attracted increased investments and funding for CCS projects in power generation. Ongoing research and development efforts were geared towards technological advancements, aiming to enhance the efficiency and cost-effectiveness of CCS technologies. In addition, the market trends witness a diversification of applications, with a focus on deploying CCS in industrial processes beyond power generation. Public awareness and social acceptance were identified as critical factors, leading to educational efforts to inform the public about the safety, benefits, and necessity of CCS.
COVID- 19 Impact
The COVID-19 pandemic had a multifaceted impact on the power generation Carbon Capture and Storage market. Construction and implementation of CCS projects experienced delays due to disruptions in supply chains, labor shortages, and lockdowns, affecting construction and commissioning schedules.
Power Generation Carbon Capture & Storage Market Trends
The market is poised for robust growth, fueled by a confluence of driving trends including stringent environmental regulations worldwide mandating reduction in greenhouse gas emissions is creating fertile ground for CCS technologies. As renewable energy sources like solar and wind gain traction, the need to capture emissions from traditional fossil fuels grows even more pressing. In addition, government incentives in the form of tax breaks, grants, and loan guarantees are enticing players towards CCS implementation.
The economic viability of CCS is improving, with the declining costs of technology and the rising price of carbon making it a more attractive option for power generation companies. Interested investors in CCS is also surging due to its potential to play a pivotal role in the transition towards a low-carbon economy.
Governments on a global scale have implemented policies and regulations aimed at incentivizing the adoption of Carbon Capture and Storage (CCS) technologies. These policy initiatives are instrumental in propelling the market for Oil & Gas CCS. Notably, the U.S. Department of Energy (DOE) exemplified this commitment in October 2022.
As part of its Fossil Energy and Carbon Management Research, Development, Demonstration, and Deployment program (FECM), the DOE allocated a substantial appropriation of USD 8.5 billion for investment in CCS infrastructure. This funding is intended to facilitate the expansion of CCS projects. The continued efforts by governments worldwide to mitigate emissions are expected to further enhance the facilitation and deployment of CCS projects on a global scale.
Power Generation Carbon Capture & Storage Market Analysis
The market is set to be propelled by increasing investments from policymakers aiming to implement innovative and sustainable systems to minimize industrial emissions. Government funds play a pivotal role in assisting industry players to mitigate risks, foster development, and accelerate innovations under precise operating conditions. For instance, in February 2022, General Electric secured USD 5.7 million in funds from the U.S. Department of Energy.
The funds are designated for a study focused on exploring methods to reduce the cost of Carbon Capture, Utilization, and Storage (CCUS) while achieving a remarkable up to 95% reduction in CO2 emissions from natural gas power plants. The collaborative effort involves GE's engineers working alongside Kiewit, BASF, Linde Engineering, and Southern Company. The study, spanning 18 months, aims to delve into the cost, engineering, and integration aspects of the planned CCUS project at the Barry power plant in Alabama.
Collaborations, agreements, and government support through diverse funding programs are anticipated to enhance and complement the CCS market. For instance, in March 2022, the Australian government announced a fund that was allocated as part of the 2022-23 federal budget within the energy and emission reduction portfolio. This announcement included a substantial investment of USD 300 million aimed at supporting low-emission LNG and clean hydrogen production in Darwin, both of which are closely linked to CCS infrastructure.
Furthermore, an investment of USD 50 million was directed towards expediting the deployment of gas infrastructure projects under the National Gas Infrastructure Plan. This initiative encompasses support for investments in CCS pipeline infrastructure.
Based on technology, the power generation carbon capture & storage market is segmented as Pre combustion, post combustion, and oxy-fuel combustion. The post combustion CCS technology is anticipated to grow at a rate of over 20.5% by the year 2032. Post-combustion capture is widely used CCS technology, is witnessing significant focus.
In addition, pre-combustion and oxy-fuel combustion capture are gaining ground. Carbon capture and utilization (CCU) technologies, which convert captured carbon dioxide into valuable products like fuels, chemicals, and building materials, are attracting growing interest, adding another potential revenue stream to the CCS ecosystem. Large-scale CCS projects under development globally are showcasing the technology's viability and driving down costs. Increased awareness of the climate crisis, public support for climate action, and the need for clean and reliable energy sources are further propelling the power generation CCS market towards a flourishing future.
The growth of the business is expected to be driven by expanding applications in the chemical and processing industry, attributed to the cost-effectiveness of CO2 separation, minimal pressure losses, and reduced energy requirements for regeneration. These benefits contribute to a shorter Carbon Capture and Storage (CCS) maturity period at a specific site and offer superior CO2 capturing performance compared to alternative solutions, thereby fostering the demand for this technology. Furthermore, the increasing need for retrofitting combustion systems in power plants, particularly in developed nations, is anticipated to contribute significantly to the overall industry growth.
The North America power generation CCS market is anticipated to grow at a rate 13% by the year 2032. The formation of joint ventures, consortiums, and public-private partnerships plays a crucial role in knowledge-sharing, pooling resources, and securing funding for the development and implementation of Carbon Capture and Storage (CCS) projects.
For instance, in February 2023, the U.S. launched a USD 2.5 billion funding program for large-scale pilot and demonstration projects aimed at decarbonizing power generation and hard-to-abate industries. Financed under the Bipartisan Infrastructure Law, this funding will be distributed through two channels: the Carbon Capture Large-Scale Pilots Program and the Carbon Capture Demonstration Projects Program.
The growth of the industry is anticipated to be driven by the surge in energy consumption and increased investments in the upstream sector, contributing to a rise in greenhouse gas (GHG) emissions. Industry players are actively implementing various demonstration projects to mitigate emissions from anthropogenic sources. For instance, in mid-2020, the Petrobras Santos Basin CO2-EOR facility in Brazil successfully captured and reinjected approximately 10 million tons of CO2 from its natural gas processing facility.
Notably, the industry is consistently expanding the capacity of its Floating Production, Storage, and Offloading (FPSO) units, with the goal of cumulatively reinjecting over 40 million tons of CO2 by 2025. Such initiatives by industries to curb emissions at the source are poised to play a pivotal role in the overall advancement of the sector.
Power Generation Carbon Capture & Storage Market Share
The major market players are focusing on project integration with oil & gas companies along with project deployment in association with government projects & contracts along with mergers and acquisitions to gain their competitive edge over the others.
Power Generation Carbon Capture & Storage Market Companies
The major players operating across the industry includes the following:
Power Generation Carbon Capture & Storage Industry News
Power Generation Carbon Capture & Storage market research report includes in-depth coverage of the industry with estimates & forecast in terms of ‘MTPA’ & ‘USD Million’ from 2019 to 2032, for the following segments:
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By Technology, 2019 – 2032 (MTPA, USD Million)
The above information has been provided for the following regions across the regions.