Oil & Gas Carbon Capture & Storage Market Size - By Technology (Pre Combustion, Post Combustion, Oxy-Fuel Combustion) & Global Forecast, 2024 - 2032

Oil & Gas Carbon Capture & Storage Market Size

Oil & Gas Carbon Capture and Storage Market size surpassed USD 3.7 billion in 2023 and is anticipated to grow 14.9% from 2024 to 2032. Continuous & exponential upstream operations coupled with increasing power generation operations is anticipated to have positive impact on the industry growth, as these verticals are the prime generators of carbon dioxide in the atmosphere.

The oil and gas industry often includes power generation facilities for their operations where CCS operations are implemented to capture the CO2 emissions produced during power generation from fossil fuels. The captured CO2 can then be transported and stored underground. Rising concern towards increasing carbon emissions coupled with increasing efforts towards the adoption of sustainable upstream procedures to limit the emissions is anticipated to increase the industry dynamics by 2032.
 

Implementing CCS in the oil and gas industry not only helps reduce greenhouse gas emissions but also allows the industry to continue supplying energy while transitioning to a low-carbon future. It enables the industry to meet emissions reduction targets and play a role in combating climate change. In addition, a wide array of processes in the oil and gas industry, such as the production of liquefied natural gas (LNG), can generate significant CO2 emissions. CCS technology can be employed to capture and store the CO2 emitted during these processes, helping to reduce the industry's overall carbon footprint, in turn contributing growth to the overall oil & gas carbon capture and storage market growth.
 

COVID- 19 Impact

COVID-19 pandemic has posed challenges to the oil & gas carbon capture and storage industry. The pandemic caused a global economic slowdown and restrictions on travel and industrial activities, leading to a sharp decrease in oil and gas demand. As a result, many oil and gas companies faced financial challenges and scaled back their investments in carbon capture projects. In addition, the economic uncertainties caused by the pandemic resulted in delays and cancellations of several carbon capture projects in the oil and gas sector. Companies were more focused on cost-cutting and maintaining cash flows, leading to a decreased appetite for investing in new initiatives.
 

Oil & Gas Carbon Capture & Storage Market Trends

Rising decarbonization measures along with increasing industry operations across oil & gas application is the prime factor contributing to the oil & gas carbon capture & storage market development. The oil and gas industry utilizes various industrial processes that produce CO2 emissions. CCS can be integrated into these processes, including gas processing, petrochemical production, and cement manufacturing, to capture and store the CO2 emissions. In addition, the sector has recognized the importance of addressing climate change and reducing GHG emissions. As a result, there has been a growing interest and adoption of CCS technologies within the sector. Many companies have been investing in CCS projects as part of their overall sustainability strategies.
 

Governments worldwide have been implementing policies and regulations to encourage the necessity of CCS technologies. Financial incentives, carbon pricing mechanisms, and regulatory frameworks have been established to support the development and deployment of CCS projects. These policy initiatives have played a crucial role in driving the oil & gas carbon capture & storage market. The ongoing governmental efforts to curb the emissions will further facilitate the deployment of CCS projects across the globe.
 

Oil & Gas Carbon Capture & Storage Market Analysis

Rising investments by the policy makers to deploy innovative & sustainable systems for minimizing industrial emissions will spur the oil & gas carbon capture & storage market growth. The government funds help industry players to de-risk, develop, and accelerate the innovations under accurate operating conditions. The contract includes the collaboration of GE’s engineers along with Kiewit, BASF, Linde Engineering & Southern Company and anticipates spending 18 months to study the cost, engineering & integration of the planned CCUS project at the Barry power plant in Alabama.
 

Collaboration & agreements along with government support through various funding programs is said to complement the business landscape. For instance, in March 2022, Australian government announced CCS funding in their 2022-23 federal budget under energy & emission reduction portfolio. This included an investment of USD 300 million to assist low emission LNG along with clean hydrogen production in Darwin which are together associated with CCS infrastructure. Additionally, USD 50 million investment was made to accelerate the deployment of gas infrastructure projects under National Gas Infrastructure Plan, which includes the support for investment in CCS pipeline infrastructure.
 

Increasing technological advancement across the Integrated Gasification Combined Cycle Plants (IGCC) coupled with the ability to convert solid fuels into syngas will spur the pre combustion segment. Rising concerns towards reducing energy penalty through design & heat optimization and increasing the operating pressure & temperature in boilers will further propel the industry growth. Furthermore, the availability of large-scale commercial plants and increasing applications across oil & gas and cement kilns industry will positively influence the oil & gas carbon capture & storage market statistics.
 

The post combustion technology will grow at a rate of 18.5% between 2023 and 2032. Increasing applications across chemical and processing industry on account of reduced cost for CO2 separation, low pressure losses, and lower regeneration energy requirements will foster the business growth. These advantages ensure lower CCS maturity period for a particular site along with higher CO2 capturing performance when compared to its other alternatives, thereby stimulating the technology demand. However, growing demand for retrofitting combustion systems in power plants across developed nations will further flourish the industry scenario.
 

The oxy-fuel combustion capture technology is said to accelerate at a rate of 17.1% till 2032. The decreased steam requirement for shift conversion along with reduced energy penalty will stimulate the product adoption. Furthermore, the emergence as a commercially viable technology along with reducing capital and the effective operating cost will propel the business growth.
 

The oil and gas industry are increasingly collaborating with technology providers, research institutions, and governments to accelerate the deployment of post-combustion CCS. Joint ventures, consortiums, and public-private partnerships are formed to share knowledge, resources, and funding, fostering the oil & gas carbon capture & storage market development and deployment of these projects. For example, 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. This will be financed under the Bipartisan Infrastructure Law, will be offered via two streams: the Carbon Capture Large-Scale Pilots Program and the Carbon Capture Demonstration Projects Program.
 

Rising energy consumption along with the increasing investments toward upstream industry, resulting in an increase of GHG emissions will boost the industry progression. Various demonstration projects are being installed by the leading players to curb the emissions from the anthropogenic sources. For instance, in mid-2020, Petrobras Santos Basin CO2-EOR facility in Brazil captured and reinjected around 10 million tons of CO2 from its natural gas processing facility. Furthermore, it is continually expanding the capacity of its FPSO units with an aim to cumulatively reinject over 40 million tons of CO2 by 2025. Such initiatives by the industries to limit the emissions at the sources will play an instrumental role in the industry.
 

Oil & Gas Carbon Capture & Storage Market Share

The major participants are focusing on project integration with oil & gas companies along with project deployment in association with government projects & contracts and mergers and acquisitions to gain their competitive edge over the others. Leading market players in the oil & gas carbon capture & storage market include

• Linde plc
• Global Thermostat
• General Electric
• Siemens
• Aker Solutions
• HALLIBURTON
• SLB
• Exxon Mobil Corporation
• Shell CANSOLV
• Mitsubishi Heavy Industries, Ltd.
• Dakota Gasification Compan
• NRG Energy, Inc.
• Fluor Corporation
• Sulzer Ltd
• Equinor ASA
   

Oil & Gas Carbon Capture & Storage Industry News

• The North America region leads in the deployment and development of carbon capture & storage/carbon capture, utilization, & storage (CCS/CCUS) with enhanced oil recovery as a crucial enabler for project development. In financial year 2021, U.S. Congress assumed USD 228.3 million for carbon capture, utilization, & storage, a USD 10.5 million increase from 2020 funding for the Fossil Energy and Carbon Management. The US Department of Energy committed co-funding deals for FEED (front-end engineering and design) studies for carbon capture technologies to capture CO2 from various industrial & natural gas sources.
   
• As per Global CCS Institute, around 73 percent of CO2 that is being captured on an annual basis as of 2022 is used for enhanced oil recovery to push more oil from the depleting field. The continuous rise in the crude oil demand along with the need to increase the reservoir productivity will accelerate the adoption of CO2-based Enhanced Oil Recovery techniques.
   
• In November 2022, General Electric entered into an agreement with DL E&C Co. Ltd., a South Korean-based EPC company, and its subsidiary, CARBONCO, to build potential carbon capture projects for the new or existing combined-cycle power plants. In addition, the collaborative companies will conduct feasibility and Front-End Engineering Design (FEED) studies. The collaboration will pave the way for customers to adopt CCUS technologies, thereby addressing carbon emissions across Asia.
   

This oil & gas 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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Market, By Technology

• Pre Combustion
• Post Combustion
• Oxy-Fuel Combustion

The above information has been provided for the following regions across the regions.

• North America
  • U.S.
  • Canada
• Europe
  • Norway
  • Netherlands
  • UK
• Asia Pacific
  • China
  • Australia
  • South Korea
• Rest of World