Carbon Capture and Storage (CCS) in Power Generation Market Research, 2032
The Carbon Capture and Storage (CCS) in power generation market size was valued at $131.2 million in 2022 and is projected to reach $450.5 million by 2032, growing at a CAGR of 11.7% from 2023 to 2032. Public awareness and concern about climate change and government support stand as a pivotal driver propelling the demand for CCS in power generation in the global market.
CCS, or carbon capture and storage, is a process used in power generation to capture carbon dioxide (CO2) emissions from the burning of fossil fuels, such as coal, natural gas, or oil. The captured CO2 is then transported to a suitable storage site, typically underground, where it is permanently stored to prevent it from entering the atmosphere and contributing to climate change. CCS is considered a key technology for reducing greenhouse gas emissions from power generation, as it allows the continued use of fossil fuels while minimizing their environmental impact. It is also an important tool for meeting emissions reduction targets set by governments and international agreements.
Key Takeaways
- Quantitative information mentioned in the global CCS in power generation market share includes the market numbers in terms of value ($Million) concerning different segments, annual growth rate, CAGR (2023-32), and growth analysis.
- The analysis in the report is provided based on fuel type, service, technology and country. The study is expected to contain qualitative information such as the market dynamics (drivers, restraints, opportunities), Porter’s Five Force Analysis, key regulations across the region, and value chain analysis.
- A few companies, including MITSUBISHI HEAVY INDUSTRIES, LTD., Linde plc, Shell plc, Exxon Mobil Corporation, JGC HOLDINGS CORPORATION, NRG Energy, Inc., hold a large proportion of the CCS in power generation market analysis.
- This report makes it easier for existing market players and new entrants to the CCS in power generation industry to plan their strategies and understand the dynamics of the industry, which helps them make better decisions.
Market Dynamics
Public awareness and concern about climate change are significant drivers for the adoption of carbon capture and storage (CCS) in the power generation market growth. As individuals become more informed about the environmental impact of carbon emissions from fossil fuel-based power generation, they are increasingly demanding cleaner, more sustainable energy sources. This rise in awareness is putting pressure on power generation companies to find ways to reduce their carbon footprint and transition to low-carbon or carbon-neutral energy solutions. Public awareness campaigns, educational initiatives, and media coverage have played a crucial role in raising awareness about the benefits of CCS technology in mitigating climate change.
By capturing CO2 emissions from power plants and storing them underground, CCS technology significantly reduces the amount of carbon released into the atmosphere, thereby helping to slow the pace of global warming. Moreover, as consumers become more environmentally conscious, they are also influencing the purchasing decisions of companies and governments. Power generation companies that adopt CCS technology appeal to environmentally conscious consumers and stakeholders, enhancing their reputation and competitiveness in the carbon capture and storage in power generation market outlook.
Government support has been a critical factor that drives the growth of the carbon capture and storage (CCS) in power generation market overview. In recent years, governments around the world have recognized the importance of reducing carbon emissions from power plants and have implemented policies and incentives to encourage the adoption of CCS technology. These policies include financial incentives such as tax credits and grants for CCS projects, as well as regulatory measures such as emissions standards that require power plants to reduce their carbon footprint.
Government support has also been instrumental in funding R&D efforts to improve CCS technology and reduce its costs. For example, the U.S. Department of Energy has invested billions of dollars in CCS R&D through programs such as the Carbon Capture, Utilization, and Storage (CCUS) Initiative. Similarly, the European Union has provided funding for CCS projects through its Horizon 2020 program.
In addition to financial support, governments have also played a role in facilitating the deployment of CCS technology by providing regulatory certainty and streamlining permitting processes. For example, in 2021, the U.S. passed the Infrastructure Investment and Jobs Act (IIJA) provided approximately $12 billion across the CCUS value chain through 2026. In 2022, the Department of Energy announced important new funding opportunities under the IIJA, including $ 45 million for CCUS in power applications; $ 820 million for large-scale carbon capture pilot projects; and $ 1.7 billion for carbon capture demonstration projects. In April 2023, the U.S. announced a ‘’Carbon Management Challenge’’ ahead of the 28th Conference of the Parties (COP), inviting countries to accelerate CCUS internationally.
The high cost of carbon capture and storage (CCS) technology poses a significant challenge to its widespread adoption in the power generation market. CCS involves capturing carbon dioxide emissions from power plants and other industrial sources, compressing it, and then transporting and storing it underground. This process is complex and expensive, with costs estimated to be between $50 and $100 per ton of CO2 captured. These costs are significantly higher than those associated with other low-carbon technologies, such as wind and solar power, which are as low as $20 to $30 per ton of CO2 avoided.
The high costs of CCS are primarily due to the need for specialized equipment and infrastructure, such as capture and compression units, pipelines, and storage facilities. In addition, the energy required to capture and compress carbon dioxide is significant, further adding to the costs. Furthermore, the high costs of CCS deter investment in the technology, as companies are reluctant to invest in projects with uncertain returns. This creates a vicious cycle, where the lack of investment leads to limited deployment of CCS, which in turn leads to higher costs and further reluctance to invest. To address this challenge, policymakers and industry stakeholders will need to work together to develop policies and incentives that help reduce the costs of CCS and make it more competitive in the power generation market.
Waste-to-energy power plants are a promising area for the implementation of carbon capture and storage (CCS) technology, as they offer a sustainable solution to both waste management and energy production. These plants convert municipal solid waste (MSW) into electricity or heat through the combustion process. However, the combustion of waste materials releases CO2 emissions, contributing to climate change and air pollution. By integrating CCS technology into waste-to-energy power plants, these emissions are captured and stored underground, mitigating their impact on the environment.
The growth of the CCS in power generation market forecast is expected to be driven by the increase in demand for sustainable energy solutions and the rise in awareness of the need to reduce greenhouse gas emissions. Waste-to-energy power plants offer a unique opportunity to capture CO2 emissions from the combustion of waste materials, which account for a significant portion of a country’s total emissions. In addition, the integration of CCS technology into these plants enhances their overall efficiency and reduces their environmental impact, making them more attractive to investors and policymakers.
Furthermore, the implementation of CCS technology in waste-to-energy power plants creates new revenue streams for plant operators. By capturing and storing CO2 emissions, these plants potentially generate carbon credits or participate in carbon offset programs, providing additional income opportunities.
Segment Overview
The CCS in power generation market report is segmented on the basis of fuel type, service, technology, and country. By fuel type, the market is divided into coal, natural gas, oil, and others. On the basis of service, it is categorized into capture, transport, and storage. On the basis of technology, it is classified into pre combustion capture, oxy-fuel combustion capture, and post combustion capture. Country -wise, the market is studied across the U.S., Canada, China, and the rest of the world.
CCS in power generation Market, By Fuel Type
The coal segment accounted for the largest share in 2022 and is expected to register the highest CAGR of 11.8%. The coal segment in CCS in power generation market is experiencing a surge in demand. CCS technology enables the capture of carbon dioxide emissions from coal-fired power plants, reducing their environmental impact.
By Fuel Type
Coal is projected as the fastest-growing segment.
In India, coal forms the backbone of the energy system. It contributes to nearly 50% of the country’s commercial primary energy supply (PES). Additionally, coal-based power generation constitutes more than 70% of the total power generated in the country.
As of December 2020, India’s total power generation stood at 103.66 billion units, with coal-based thermal power plants accounting for around 75% of this production.
This increased interest in CCS is driven by a growing global focus on mitigating climate change and transitioning to cleaner energy sources.
CCS in power generation Market, By Service
The capture segment accounted for the largest share of 2022. The demand for capture service in CCS (carbon capture and storage) in the power generation market is increasing due to several factors. There is a growing awareness of the need to reduce carbon emissions to combat climate change. Furthermore, governments and regulatory bodies are imposing stricter regulations on carbon emissions, incentivizing power generation companies to invest in CCS technology.
By Service
Storage is projected as the fastest-growing segment.
In February 2022, Shell CANSOLV was chosen by the Humber Zero project, a carbon capture and hydrogen generation project, to deliver technology to capture millions of tons of CO2 from the VPI Immingham in the UK. Humber Zero is a multibillion-dollar project to decarbonize critical sectors in Immingham, northern Lincolnshire. The project aims to increase the company's market share in the region by producing hydrogen for energy and capturing carbon emissions after burning.
Storage is expected to register the highest CAGR of 12.4%. The demand for storage services in carbon capture and storage (CCS) in the power generation market is on the rise. As the world transitions to cleaner energy sources, such as renewables and natural gas, CCS has become a crucial technology for reducing carbon emissions from fossil fuel-based power plants. Storage services are essential for safely and efficiently storing captured CO2, which is then transported and utilized or permanently stored underground.
CCS in power generation Market, By Technology
The post-combustion capture segment accounted for the largest share in 2022. Post-combustion capture in CCS (Carbon Capture and Storage) is experiencing a surge in demand within the power generation market. This technology involves capturing carbon dioxide emissions from power plants after combustion, reducing greenhouse gas emissions and mitigating climate change. The increasing demand for post-combustion capture is driven by regulatory requirements, corporate sustainability goals, and public pressure to reduce carbon emissions.
By Technology
Oxy-Fuel Combustion Capture is projected as the fastest-growing segment.
Oxy-fuel combustion capture is expected to register the highest CAGR of 12.1%. Oxy-fuel combustion capture is experiencing a surge in demand in the CCS (carbon capture and storage) sector, particularly in the power generation market. This technology involves burning fossil fuels in a mixture of oxygen and recirculated flue gas, which produces a concentrated stream of CO2 that can be easily captured and stored. The increasing demand for this technology is driven by the need to reduce CO2 emissions from power plants, as well as the growing recognition of the importance of CCS in achieving climate goals.
CCS in power generation Market, By Country
Canada garnered the largest share in 2022. The demand for CCS in the power generation market trends in Canada has been increasing due to several factors. There is a growing need for reliable and efficient power generation solutions to meet the increasing energy demands of the country. In addition, the Canadian government has been investing in renewable energy sources, such as wind and solar, which require advanced control systems to optimize their performance. A possible approach for earning Clean Fuel Standard compliance credits is through projects that use CCS to reduce the lifecycle carbon intensity of fossil fuels. In addition, Canada's Budget 2021 proposed an investment tax credit for capital spent on CCUS projects, to reduce CO2 emissions by at least 15 Mtpa by 2022.
By Country
Rest of the world is projected as the fastest-growing Country.
Competitive Analysis
The major players operating in the CCS in power generation market analysis are MITSUBISHI HEAVY INDUSTRIES, LTD., Linde plc, Shell plc, Exxon Mobil Corporation, JGC HOLDINGS CORPORATION, NRG Energy, Inc., Honeywell International Inc.., General Electric, Fluor Corporation, Siemens Energy.
These key players adopted strategies such Exxon Mobil Corporation acquired Denbury Inc., an experienced developer of carbon capture, utilization, and storage (CCS) technologies and enhanced oil recovery. The acquisition is an all-stock deal for $4.9 billion, or $89.45 per share, based on ExxonMobil's closing price on July 12, 2023.
Fluor Corporation announced a partnership with Carbfix, the world's first carbon dioxide (CO2) mineral storage operator, to develop integrated carbon capture and storage (CCS) solutions. Together, the corporations hope to mitigate the effects of climate change by assisting in the decarbonization of difficult-to-reduce industries with large greenhouse gas emissions, such as steel, aluminum, and cement.
Recent Developments in CCS in Power Generation Industry
In November 2023, Evero Energy Group Limited (Evero; previously known as Bioenergy Infrastructure Group), a leading low-carbon waste-to-energy company, announced that it had partnered with Mitsubishi Heavy Industries, Ltd. (MHI), one of the world's leading industrial groups, to deliver its InBECCS (Ince Bioenergy with Carbon Capture and Storage) project. This partnership boosted the demand for CCS in power generation market.
In April 2023, Linde has announced an agreement with Heidelberg Materials, one of the world's major construction materials firms, to build, own, and manage a large-scale carbon capture and liquefaction facility. Linde and Heidelberg Materials propose to lower carbon emissions at Heidelberg's Lengfurt factory in Germany by utilizing carbon capture. Approximately 70,000 tons of CO2 will be captured, liquefied, and purified annually by the new facility; Linde will sell the majority of the liquid CO2 that is produced as feedstock for the chemicals and food and beverage end industries.
In November 2022, ExxonMobil and Mitsubishi Heavy Industries (MHI) collaborated to integrate MHI's superior CO2 capture technology into ExxonMobil's end-to-end carbon capture and storage (CCS) solution for industrial clients. This collaboration boosted the demand for CCS in power generation market.
In October 2022, GE Gas Power had announced the signing of an agreements of Understanding (MoU) with Korea's leading Engineering, Procurement, and Construction (EPC) company, DL E&C Co. Ltd. (DL E&C), and its subsidiary, CARBONCO, a decarbonization company, to jointly explore a roadmap for carbon capture technology integration with natural gas combined cycle plants in Asia and Oceania, powered by GE technology. The collaboration had coincided with GE's commitment to accelerating and scaling up the region's transition to a lower-carbon future in the power generating sector.
KEY BENEFITS FOR STAKEHOLDERS
- The report includes in-depth analysis of different segments and provides market estimations between 2022 and 2032.
- A comprehensive analysis of the factors that drive and restrict the growth of the CCS in power generation market is provided.
- Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
- Estimations and forecast are based on factors impacting the CCS in power generation market growth, in terms of value.
- Key market players are profiled to gain an understanding of the strategies adopted by them.
- This report provides a detailed analysis of the current CCS in power generation market trends and future estimations from 2022 to 2032, which help identify the prevailing market opportunities.
Carbon Capture and Storage (CCS) in Power Generation Market Report Highlights
| Aspects | Details |
 By Fuel type |
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 By Service |
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 By Technology |
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 By Country |
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 Key Market Players | Shell plc, Exxon Mobil Corporation, General Electric, Honeywell International Inc., Fluor Corporation, JGC HOLDINGS CORPORATION, Siemens Energy, Linde plc, NRG Energy, Inc., MITSUBISHI HEAVY INDUSTRIES, LTD. |
Analyst Review
According to the insights of the CXOs of leading companies, CCS in power generation is the need to reduce CO2 emissions to mitigate climate change. As governments around the world implement policies to reduce greenhouse gas emissions, CCS help power plants meet these targets by capturing and storing their CO2 emissions. This also helps power plants comply with regulations and avoid penalties for exceeding emissions limits. Governments and organizations offer financial incentives for power plants to adopt CCS technology, such as tax credits or subsidies. These incentives help offset the cost of implementing CCS and make it more financially viable for power plants to adopt the technology.
However, the high cost of implementing CCS technology hampers the growth of the market. CCS requires significant investment in equipment and infrastructure, and power plants are reluctant to incur these costs without financial incentives or regulatory requirements.
The CXOs further added the potential for CCS to be combined with other technologies, such as renewable energy sources such as wind and solar power. By combining CCS with renewable energy, power plants reduce their CO2 emissions even further increase their overall sustainability and offer lucrative opportunities to the market.
The growing focus on reducing CO2 emissions is the key factor boosting the global CCS in power generation market growth
The CCS in power generation market was valued at $ 131.2 million in 2022 and is projected to reach $ 450.5 million by 2032, growing at a CAGR of 11.7% from 2023 to 2032.
The major players that operate in the global CCS in power generation market are MITSUBISHI HEAVY INDUSTRIES, LTD., Linde plc, Shell plc, Exxon Mobil Corporation, JGC HOLDINGS CORPORATION, NRG Energy, Inc., Honeywell International Inc.., General Electric, Fluor Corporation, Siemens Energy.
Public awareness and concern about climate change is the main driver of global CCS in power generation market
The CCS in power generation market is segmented on the basis of fuel type, service, technology, and country. By fuel type, the market is divided into coal, natural gas, oil, and others. On the basis of service, it is categorized into capture, transport, and storage. On the basis of technology, it is classified into pre combustion capture, oxy-fuel combustion capture, and post combustion capture. Country -wise, the market is studied across the U.S., Canada, China, and the rest of the world.
Extensive infrastructure requirements for CCS technology is the restraint factor of global CCS in power generation market
Coal is the dominating segment based on fuel type
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