Power Generation Carbon Capture & Storage Market Analysis

Power Generation Carbon Capture & Storage Market Analysis

To get key market trends

  Download Free Sample

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.