Oil & Gas Carbon Capture & Storage Market Analysis

Oil & Gas Carbon Capture & Storage Market Analysis

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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.