Carbon capture and sequestration (CCS) is a technology that can capture approximately 90 percent of the CO2 emissions produced by the use of fossil fuels in industrial processes and electricity generation, preventing CO2 from entering the atmosphere. The CCS chain consists of three components: carbon dioxide capture, transport, and storage in deep saline aquifer formations or depleted oil and gas fields.
The Carbon Capture and Sequestration Market is expected to expand over the projected period due to increasing concerns about the environment and rising demand for CO2-EOR methods. The high cost of carbon capture and sequestration, on the other hand, may limit the market's expansion. Second-generation capturing methods that enable economic operations, on the other hand, are expected to exhibit development possibilities for the carbon capture and sequestration market throughout the projection period.
Market Drivers
Collaborations Among Industry Participants to Drive Market Growth
Several market participants are working together to develop large-scale Carbon Capture and Sequestration plants and commercialize the technology. The collaborations are also focused on aiding in the collection of major CAPEX necessary for new projects, as well as the quick deployment of regional contracts to support project development and operation.
For example, CCS industry leaders Total, Shell, and Equinor announced a USD 680 million investment in the first phase of the Northern Lights CCS project in May 2020. The first stage of the project will concentrate on constructing infrastructure to inject, transport, and store 1.5 metric tonnes of CO2 per year (MTPA).
Governments and organizations should encourage financial plans to boost market growth.
Many governments are spending significantly on the development of innovative replacements for successfully capturing carbon from diverse sources. The organizations also collect data on prospective new locations for storing and utilizing sequestered gases. They also assist in the development of various carbon capture systems.
For example, the US Department of Energy (DoE) approved USD 11.5 million in funding for the FLExible Carbon Capture and Storage (FLECCS) project in July 2020. The initiative proposes to build new natural gas power production facilities and repair old ones in order to meet critical Carbon Capture and Sequestration criteria.
Market Restraints
The high cost of carbon capture and sequestration, on the other hand, may limit the market's expansion.
Experts at DataM Intelligence estimate that the carbon capture and sequestration market will continue to flourish, with substantial growth anticipated in the coming years. They attribute this growth because of increasing collaboration among major companies to commercialize CCS technology by establishing large-scale manufacturing facilities. The growing need to reduce carbon emissions will boost growth.
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